Remodeled Grocery and Convenience
For Sale
$850,000
599 PACIFIC Way, Gearhart, OR 97138
CommercialSale, Gearhart, OR
Property Size4,122 SF
Lot Size0.11 Acres
Price / SF$206.21
Days on Market76
Property Features for 599 PACIFIC Way
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning
C-1
Directions
Hwy 101 N Gearhart, Turn R on Pacific Way to property on L, on Corner of S Cottage Ave & Pacific Way
Subdivision
_182
Standard status
Active
APN
8944
Size
4,122 SF
Lot size
0.11 Acres
Taxes and HOA fees
Tax Description
REDONDO ADD LT 22 BLK 7 EXC POR IN TL 6200
Tax Annual Amount
4736
Legal Description
REDONDO ADD LT 22 BLK 7 EXC POR IN TL 6200
Utilities
Heating system
Forced Air
Building Details
Year built
1950
Floors in Building
1
Building materials
CementSiding, Stucco, WoodSiding
Roof type
Built-Up, Flat, Membrane
Listing Agency:
Windermere Realty Trust · Windermere Real Estate
(503) 738-8522
Listed By:
Jody Conser · License #201237903
(503) 440-0457
Added: Jun 12
Last Checked: Aug 26 at 1:06AM
MLS# 237378879
Copyright © 2026 Regional Multiple Listing Services. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
This 4,122-square-foot commercial building occupies a 0.11-acre site and was built in 1950. The remodeled interior includes coolers, deli cases, ovens, and two half bathrooms, while the rear portion is currently used for storage. The property is zoned C-1 and offers a configuration that has supported grocery, deli, retail, office, and restaurant-related uses.
Located at 599 Pacific Way in Gearhart, the property sits in the downtown area and is near the beach, shopping, and schools. The building features cement siding, stucco, and wood siding, with forced-air heating and a built-up, flat, membrane roof. Historical photographs reflect prior restaurant, bar, and deli operations, while the current rear storage use provides additional functional space.
Located at 599 Pacific Way in Gearhart, the property sits in the downtown area and is near the beach, shopping, and schools. The building features cement siding, stucco, and wood siding, with forced-air heating and a built-up, flat, membrane roof. Historical photographs reflect prior restaurant, bar, and deli operations, while the current rear storage use provides additional functional space.
Key Highlights
- 4,122‑square‑foot commercial building on a 0.11‑acre site
- C‑1 zoning supports the property’s commercial classification
- Remodeled interior with coolers, deli cases, ovens, and two half bathrooms
Financial Insights
Estimated NOI and Cap Rate
NOI = area × lease_rate × (100 − vacancy) / 100 × (1 − expense_ratio). Net Operating Income — what the owner takes home each year before mortgage payments and income tax. Effective rent (asking rent minus vacancy losses) minus operating costs (taxes, insurance, maintenance, management).
NOI / Yr
$63,336
Cap rate = NOI / list price × 100. Capitalization rate — annual return on a fully cash purchase, before financing. NOI divided by price. Higher means more income per dollar invested, but usually also more risk or older condition. 5–8% is typical for stabilized commercial property; double digits often signal distressed deals.
Cap Rate
7.45%
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$1,266,720
$1.3M
Cap Rate 7%
$904,800
$904.8K
Cap Rate 9%
$703,733
$703.7K
Market Conditions
NOI Build-Up for 4,122 SF
Vacancy — income lost from leasable area expected to sit empty during the year, subtracted from gross rent.
EGI (Effective Gross Income) — gross rent minus vacancy losses, the realistic income before paying operating costs.
OpEx (Operating Expenses) — recurring costs to operate the property (property tax, insurance, utilities, maintenance, management); excludes financing and capital improvements.
NOI (Net Operating Income) — income a property generates after operating costs but before financing and taxes.
Gross rent
$133.1K $32.28/SF
− Vacancy
−$42.6K −$10.33/SF
EGI
$90.5K $21.95/SF
− OpEx
−$27.1K −$6.59/SF
NOI
$63.3K $15.37/SF
Area
Clatsop County, OR
Vacancy
32.00%
Lease Rate
$32.28 /SF/Yr
Expense Ratio
30.00%
Simulate Cap Rate and NOI
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$1,266,720
Cap Rate 7%
$904,800
Cap Rate 9%
$703,733
Alternative Uses
Best Use
Retail
$904.8K
$791.7K – $1.06M
NOI $63,336 @ 7.0% cap · market cap 7.45%
Second Best
Specialty Retail
$872.9K
$763.8K – $1.02M
NOI $61,100 @ 7.0% cap · market cap 7.19%
Theoretical Best
Office A
$1.20M
$1.05M – $1.40M
NOI $83,891 @ 7.0% cap · market cap 9.87%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
292
Businesses Nearby
6k
Monthly Visits Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 89%
Home Improvements & Furnishings 11%
Dollar General
Shops & Services
5,272 visits/mo
0.4 miles
Sherwin-Williams Paint Store
Home Improvements & Furnishings
655 visits/mo
0.4 miles
Demographics for 97138, OR
11,248
Population
7,785
Households
1.4
Avg Household Size
48
Median Age
28%
College-Educated
92%
High-School Grad
146.0 sq mi
ZIP Area
77
Density / Sq Mi
$51,993
Median Household Income
$39,285
Median Earnings
$1,004
Median Rent
$433,200
Median Home Value
Market
Vacancy Rate% for Retail in West region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Grocery and convenience store - Remodeled commercial space with refrigeration, deli equipment, ovens, and two half bathrooms.
Where is this grocery and convenience store located?
The property is located at 599 PACIFIC Way Gearhart, OR.
What is the asking price?
The asking price for this property is $850,000.
What are key features of this property?
This property features: 4,122‑square‑foot commercial building on a 0.11‑acre site; C‑1 zoning supports the property’s commercial classification; Remodeled interior with coolers, deli cases, ovens, and two half bathrooms
