Mixed-Use Property with
For Sale
$2,550,000
62910 Ob Riley Rd, Bend, OR 97703
Includes a leased restaurant, adjacent office buildings, and an adjoining vacant lot.
Property Size11,024 SF
Price / SF$231.31
Days on Market20
Property Features for 62910 Ob Riley Rd
General Information
Standard status
Active
Size
11,024 SF
Property subtype
Commercial
Additional Details
Cap Rate
6.75%
Building Details
Year Built
1999
Buildings
3
Tenancy
Multi
Listing Agency:
RE/MAX Key Properties
(541) 728-0033
Listed By:
Dan C Steelhammer
Source:
Portlandoregonhomelistings
Added: Aug 10
Changed: Aug 29
Last Checked: Aug 25 at 7:33AM
Displayed information is deemed reliable but is not guaranteed and should be independently verified. All listing content including descriptions, pricing, images are the copyrighted material of RE/MAX Key Properties
Investment Insights
Based on property information with market context.
McKay Cottage Plaza comprises the real estate associated with McKay Cottage Restaurant, two neighboring office buildings, and an adjoining vacant lot. The property has received recent HVAC improvements, along with new sealing and striping. A sub-water meter serves the restaurant, which pays its own utilities.
The restaurant is under a long-term lease, while the office tenants are primarily committed to two-year leases. Current rents and historical expenses support a 6.75 CAP on the APOD, with projected tax and insurance increases incorporated into the analysis. The offering is for real estate only, and financials and a rent roll are available upon completion of an NDA. The property is located at 62910 Ob Riley Rd in Bend, Oregon.
The restaurant is under a long-term lease, while the office tenants are primarily committed to two-year leases. Current rents and historical expenses support a 6.75 CAP on the APOD, with projected tax and insurance increases incorporated into the analysis. The offering is for real estate only, and financials and a rent roll are available upon completion of an NDA. The property is located at 62910 Ob Riley Rd in Bend, Oregon.
Key Highlights
- Real estate includes McKay Cottage Restaurant, two adjacent office buildings, and a vacant lot
- 6.75 CAP on APOD using current rents and historical expenses
- Restaurant has a long‑term lease and pays its own utilities
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
$158,311
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
6.21%
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%
$3,166,220
$3.2M
Cap Rate 7%
$2,261,586
$2.3M
Cap Rate 9%
$1,759,011
$1.8M
Market Conditions
NOI Build-Up for 11,024 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
$224.9K $20.40/SF
− Vacancy
−$13.8K −$1.25/SF
EGI
$211.1K $19.15/SF
− OpEx
−$52.8K −$4.79/SF
NOI
$158.3K $14.36/SF
Area
Bend, OR
Vacancy
6.14%
Lease Rate
$20.40 /SF/Yr
Expense Ratio
25.00%
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%
$3,166,220
Cap Rate 7%
$2,261,586
Cap Rate 9%
$1,759,011
Alternative Uses
Best Use
Specialty Retail
$4.76M
$4.17M – $5.56M
NOI $333,366 @ 7.0% cap · market cap 13.07%
Second Best
Office B
$2.26M
$1.98M – $2.64M
NOI $158,311 @ 7.0% cap · market cap 6.21%
Theoretical Best
—
—
same as Best Use
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Multi-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
636
Businesses Nearby
Explore this area
Business Placement
Demographics for 97703, OR
32,475
Population
16,032
Households
2
Avg Household Size
45
Median Age
60%
College-Educated
98%
High-School Grad
269.8 sq mi
ZIP Area
120
Density / Sq Mi
$118,160
Median Household Income
$52,182
Median Earnings
$1,831
Median Rent
$915,900
Median Home Value
Market
Vacancy Rate% for Office in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Mixed-use property - Includes a leased restaurant, adjacent office buildings, and an adjoining vacant lot.
Where is this mixed-use property located?
The property is located at 62910 Ob Riley Rd Bend, OR.
What is the asking price?
The asking price for this property is $2,550,000.
What are key features of this property?
This property features: Real estate includes McKay Cottage Restaurant, two adjacent office buildings, and a vacant lot; 6.75 CAP on APOD using current rents and historical expenses; Restaurant has a long‑term lease and pays its own utilities
