Restaurant Building with Highway
For Sale
$1,650,000
Pending
6501 6th Ave, Tacoma, WA 98406
Restaurant building with real estate included, located near major businesses.
Property Size5,736 SF
Days on Market551
Property Features for 6501 6th Ave
General Information
Standard status
Pending
Size
5,736 SF
Property subtype
Commercial
Building Details
Year Built
1955
Listing Agency:
JCM PROPERTY MANAGEMENT
Listed By:
JEFF COOMBE
(360) 620-5300
Source:
Corcoran
Added: Mar 6, 2025
Changed: Aug 8
Last Checked: Jul 23 at 8:19AM
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 JCM PROPERTY MANAGEMENT
Investment Insights
Based on property information with market context.
This 5,736-square-foot building is located on a populated avenue in Tacoma, Washington, offering convenient access to Highway 16, both east and west. Situated in a plaza with ample parking, the property benefits from high visibility from the main street. The sale includes both the real estate and the business. The building features multiple large dining rooms and a bar area. Skylights in the entrance and a private alcove enhance the interior with natural light, while a covered outdoor patio provides an atmospheric space for outdoor dining. A new roof was installed in September 2025. The property is near major businesses such as Winco and Starbucks, and is located not far from the Tacoma Mall and other retail and restaurant establishments. It is also located across the street from Hunt Middle School.
Key Highlights
- Includes real estate in the business sale.
- High visibility location on a populated avenue.
- Ample parking options in a plaza setting.
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
$82,764
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
5.02%
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%
$1,655,280
$1.7M
Cap Rate 7%
$1,182,343
$1.2M
Cap Rate 9%
$919,600
$919.6K
Market Conditions
NOI Build-Up for 5,736 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
$114.9K $20.04/SF
− Vacancy
−$4.6K −$0.80/SF
EGI
$110.4K $19.24/SF
− OpEx
−$27.6K −$4.81/SF
NOI
$82.8K $14.43/SF
Area
Tacoma, WA
Vacancy
4.00%
Lease Rate
$20.04 /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%
$1,655,280
Cap Rate 7%
$1,182,343
Cap Rate 9%
$919,600
Alternative Uses
Best Use
Specialty Retail
$1.18M
$1.03M – $1.38M
NOI $82,764 @ 7.0% cap · market cap 5.02%
Second Best
Retail
$986.0K
$862.8K – $1.15M
NOI $69,021 @ 7.0% cap · market cap 4.18%
Theoretical Best
Office A
$1.76M
$1.54M – $2.06M
NOI $123,416 @ 7.0% cap · market cap 7.48%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
517
Businesses Nearby
248k
Monthly Visits Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Dining 40%
Groceries 30%
Shops & Services 29%
Electronics 1%
WinCo Foods
Groceries
62,990 visits/mo
0.2 miles
Dollar Tree
Shops & Services
26,056 visits/mo
0.3 miles
Panda Express
Dining
24,107 visits/mo
0.3 miles
McDonald's
Dining
19,987 visits/mo
0.2 miles
Starbucks
Dining
15,082 visits/mo
0.1 miles
Demographics for 98406, WA
22,768
Population
10,748
Households
2.1
Avg Household Size
42
Median Age
48%
College-Educated
96%
High-School Grad
4.2 sq mi
ZIP Area
5,421
Density / Sq Mi
$104,761
Median Household Income
$59,659
Median Earnings
$1,677
Median Rent
$594,100
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.
Similar Off Market Nearby
- Chef Bette Anne Curry Catering Company — 7104 6th Ave, Tacoma, WA 98406
- The Gourmet Niche — 7104 6th Ave, Tacoma, WA 98406
Frequently Asked Questions
What type of property is this?
Restaurant - Restaurant building with real estate included, located near major businesses.
Where is this restaurant located?
The property is located at 6501 6th Ave Tacoma, WA.
What is the asking price?
The asking price for this property is $1,650,000.
What are key features of this property?
This property features: Includes real estate in the business sale.; High visibility location on a populated avenue.; Ample parking options in a plaza setting.
