Established Restaurant on US
For Sale
Contact for pricing
685 US Hwy 1, Vero Beach, FL 32962
Long-standing restaurant property on a high-traffic US Highway.
Property Size3,474 SF
Price / SF$345.42
Days on Market204
Property Features for 685 US Hwy 1
General Information
Standard status
Active
Size
3,474 SF
Property subtype
Retail
Zoning
CH- Heavy Commercial
Lease Type
NNN
Building Details
Year Built
1974
Listing Agency:
Mills Commercial Real Estate Group LLC
(772) 562-0018
Listed By:
Bill Mills · License #FL BK3304531
Source:
Crexi
Added: Feb 4
Changed: Aug 18
Last Checked: Aug 26 at 5:50PM
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 Mills Commercial Real Estate Group LLC
Investment Insights
Based on property information with market context.
Located at 685 US Highway #1 in Vero Beach, this restaurant property has operated for over fifty years. Originally established in 1973 as part of the "Fat Boys BBQ" chain, it maintained a reputation for culinary excellence. In 2007, under new ownership, it became "Smokehouse BBQ," continuing to serve families and business groups. Currently operating as "Caffe 66" under experienced management, the property offers 3,474 square feet of space.
Key Highlights
- Established restaurant with a 50‑year operating history.
- Located on US Highway #1 in Vero Beach.
- Family‑friendly atmosphere and suitable for business gatherings.
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
$53,330
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
4.44%
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%
$1,066,600
$1.1M
Cap Rate 7%
$761,857
$761.9K
Cap Rate 9%
$592,556
$592.6K
Market Conditions
NOI Build-Up for 3,474 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
$77.1K $22.20/SF
− Vacancy
−$6.0K −$1.73/SF
EGI
$71.1K $20.47/SF
− OpEx
−$17.8K −$5.12/SF
NOI
$53.3K $15.35/SF
Area
Indian River County, FL
Vacancy
7.80%
Lease Rate
$22.20 /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%
$1,066,600
Cap Rate 7%
$761,857
Cap Rate 9%
$592,556
Alternative Uses
Best Use
Specialty Retail
$761.9K
$666.6K – $888.8K
NOI $53,330 @ 7.0% cap · market cap 4.44%
Second Best
—
—
no second resolved use
Theoretical Best
—
—
same as Best Use
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
715
Businesses Nearby
76k
Monthly Visits Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 53%
Dining 31%
Apparel 14%
Electronics 2%
Chili's Grill & Bar
Dining
19,169 visits/mo
0.3 miles
Goodwill
Apparel
10,326 visits/mo
0.5 miles
Speedway
Shops & Services
9,363 visits/mo
0.2 miles
Caliber Car Wash
Shops & Services
6,708 visits/mo
0.4 miles
Dollar General
Shops & Services
6,204 visits/mo
0.4 miles
Demographics for 32962, FL
26,011
Population
12,705
Households
2
Avg Household Size
49
Median Age
25%
College-Educated
90%
High-School Grad
12.5 sq mi
ZIP Area
2,081
Density / Sq Mi
$65,137
Median Household Income
$32,617
Median Earnings
$1,184
Median Rent
$247,700
Median Home Value
Market
Vacancy Rate% for Retail in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Conventional restaurant - Long-standing restaurant property on a high-traffic US Highway.
Where is this conventional restaurant located?
The property is located at 685 US Hwy 1 Vero Beach, FL.
What is the asking price?
The asking price for this property is $1,200,000.
What are key features of this property?
This property features: Established restaurant with a 50‑year operating history.; Located on US Highway #1 in Vero Beach.; Family‑friendly atmosphere and suitable for business gatherings.
