Restaurant with Banquet
For Sale
$1,250,000
7196 S Highway 92, Hereford, AZ 85615
Commercial Sale, Hereford, AZ
Property Size5,607 SF
Lot Size1.32 Acres
Price / SF$222.94
Days on Market789
Property Features for 7196 S Highway 92
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning
Cochise - GB
Accessibility
Accessible Approach with Ramp
Lot features
Decorative Gravel
Directions
Hwy 92 south to E Cactus Ln, by the Dollar General. Property located near corner of Hereford Rd.
Subdivision
Cochise
Standard status
Active
APN
104-06-007
Size
5,607 SF
Lot size
1.32 Acres
Taxes and HOA fees
Tax Year
2023
Tax Description
multiple attached in document tab. IN S2 SEC 7 BY M&B BEG AT S4 COR N 45DEG 25' 30 E 82.10'N 44DEG 34' 30 W20' TO TRU
Tax Annual Amount
14500
Legal Description
multiple attached in document tab. IN S2 SEC 7 BY M&B BEG AT S4 COR N 45DEG 25' 30 E 82.10'N 44DEG 34' 30 W20' TO TRU
Utilities
Sewer type
Septic Tank
Heating system
Propane (Heating), Forced Air
Cooling system
Central Air
Building Details
Year built
2012
Building materials
Frame - Stucco
Roof type
Rolled Hot Mop
Listing Agency:
Tierra Antigua Realty
(520) 439-8888
Listed By:
Debra Coste
(520) 249-6562
Added: Jul 15, 2024
Changed: Sep 5
Last Checked: Sep 11 at 3:06PM
MLS# 22417469
Copyright © 2026 Multiple Listing Service of Southern Arizona. 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.
Restaurant property at 7196 S Highway 92 in Hereford, Arizona, offering 5,607 square feet on 1.32 acres. The building was rebuilt in 2012 and includes an extensive kitchen, bar area, banquet room, and ample seating. Frame-and-stucco construction, central air, forced-air heating, propane heating, a rolled hot-mop roof, and septic service are in place. An accessible approach with ramp provides entry, and a Class 12 liquor license is included in the sale.
The property includes 5 parcels and fronts the main highway at the foot of the mountains. Its location is in Cochise County, minutes from Sierra Vista, with zoning identified as Cochise - GB.
The property includes 5 parcels and fronts the main highway at the foot of the mountains. Its location is in Cochise County, minutes from Sierra Vista, with zoning identified as Cochise - GB.
Key Highlights
- 5,607‑square‑foot restaurant building on 1.32 acres
- Rebuilt in 2012 with frame‑and‑stucco construction
- Extensive kitchen, bar area, banquet room, and ample seating
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
$58,159
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
4.65%
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%
$1,163,180
$1.2M
Cap Rate 7%
$830,843
$830.8K
Cap Rate 9%
$646,211
$646.2K
Market Conditions
NOI Build-Up for 5,607 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
$84.1K $15.00/SF
− Vacancy
−$6.6K −$1.17/SF
EGI
$77.5K $13.83/SF
− OpEx
−$19.4K −$3.46/SF
NOI
$58.2K $10.37/SF
Area
Cochise County, AZ
Vacancy
7.80%
Lease Rate
$15.00 /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%
$1,163,180
Cap Rate 7%
$830,843
Cap Rate 9%
$646,211
Alternative Uses
Best Use
Specialty Retail
$830.8K
$727.0K – $969.3K
NOI $58,159 @ 7.0% cap · market cap 4.65%
Second Best
—
—
no second resolved use
Theoretical Best
—
—
same as Best Use
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Lease Details
Yes
Liquor license
Location Intelligence
Trade Area within ½ mile
39
Businesses Nearby
7k
Monthly Visits Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 100%
Dollar General
Shops & Services
7,019 visits/mo
0.0 miles
Demographics for 85615, AZ
9,073
Population
4,294
Households
2.1
Avg Household Size
53
Median Age
36%
College-Educated
95%
High-School Grad
185.3 sq mi
ZIP Area
49
Density / Sq Mi
$76,196
Median Household Income
$50,838
Median Earnings
$888
Median Rent
$247,400
Median Home Value
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
View Realmo Analytics
Market
Vacancy Rate% for Retail in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Conventional restaurant - Highway restaurant with an extensive kitchen, bar area, banquet room, and accessible ramp entry.
Where is this conventional restaurant located?
The property is located at 7196 S Highway 92 Hereford, AZ.
What is the asking price?
The asking price for this property is $1,250,000.
What are key features of this property?
This property features: 5,607‑square‑foot restaurant building on 1.32 acres; Rebuilt in 2012 with frame‑and‑stucco construction; Extensive kitchen, bar area, banquet room, and ample seating
