Historic Downtown Hotel with Retail Ground
For Sale
$4,750,000
661 S Main St, Lebanon, OR 97355
COMMERCIAL - Lebanon, OR
Property Size27,764 SF
Lot Size0.87 Acres
Price / SF$171.08
Days on Market132
Property Features for 661 S Main St
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning
CBC
View
Territorial
Standard status
Active
Size
27,764 SF
Lot size
0.87 Acres
Amenities
off street parking lot
Building Details
Year built
1910
Roof type
Other
Listing Agency:
KELLER WILLIAMS REALTY MID-WILLAMETTE - GILLOTT TEAM
(541) 738-7770
Listed By:
LAURA GILLOTT · License #920300248
(541) 990-7785
Added: Apr 2
Changed: Aug 4
Last Checked: Aug 11 at 6:06PM
MLS# 837723
Copyright © 2026 Willamette Valley Multiple Listing Service. 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.
Historic downtown hotel established in 1910, approximately 33,612 SF, with a ground floor featuring four glass front retail spaces that are 100% occupied. The second and third floors are in process of renovation, with an upside described as 60+ hotel or apartment spaces.
The property includes apartment operations as well, with ten apartment spaces that are 100% occupied. Upgrades mentioned include a new membrane roof in 2020, along with electrical and plumbing work throughout.
The site consists of 0.87 acres and includes a 0.37 acre off-street parking lot. Zoning is listed as CBC.
The property includes apartment operations as well, with ten apartment spaces that are 100% occupied. Upgrades mentioned include a new membrane roof in 2020, along with electrical and plumbing work throughout.
The site consists of 0.87 acres and includes a 0.37 acre off-street parking lot. Zoning is listed as CBC.
Key Highlights
- Historic hotel established in 1910
- Ground floor has four glass front retail spaces, 100% occupied
- Ten apartment spaces, 100% occupied
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
$426,602
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
8.98%
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%
$8,532,040
$8.5M
Cap Rate 7%
$6,094,314
$6.1M
Cap Rate 9%
$4,740,022
$4.7M
Market Conditions
NOI Build-Up for 27,764 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
$896.2K $32.28/SF
− Vacancy
−$286.8K −$10.33/SF
EGI
$609.4K $21.95/SF
− OpEx
−$182.8K −$6.59/SF
NOI
$426.6K $15.37/SF
Area
Linn 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%
$8,532,040
Cap Rate 7%
$6,094,314
Cap Rate 9%
$4,740,022
Alternative Uses
Best Use
Retail
$6.09M
$5.33M – $7.11M
NOI $426,602 @ 7.0% cap · market cap 8.98%
Second Best
Apartment 5plus
$3.45M
$3.02M – $4.02M
NOI $241,440 @ 7.0% cap · market cap 5.08%
Theoretical Best
Office A
$8.09M
$7.08M – $9.44M
NOI $566,172 @ 7.0% cap · market cap 11.92%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
10
Residential units
100%
Occupancy
Multi-tenant
Tenancy
Yes
Utilities to site
Location Intelligence
Trade Area within ½ mile
476
Businesses Nearby
Explore this area
Business Placement
Demographics for 97355, OR
32,413
Population
13,623
Households
2.4
Avg Household Size
41
Median Age
18%
College-Educated
91%
High-School Grad
214.3 sq mi
ZIP Area
151
Density / Sq Mi
$64,307
Median Household Income
$39,934
Median Earnings
$1,267
Median Rent
$332,700
Median Home Value
Market
Vacancy Rate% for Multifamily 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?
Hotel - Historic hotel with four occupied ground-floor retail spaces and ten occupied apartment spaces, zoned CBC.
Where is this hotel located?
The property is located at 661 S Main St Lebanon, OR.
What is the asking price?
The asking price for this property is $4,750,000.
What are key features of this property?
This property features: Historic hotel established in 1910; Ground floor has four glass front retail spaces, 100% occupied; Ten apartment spaces, 100% occupied
