Freestanding Restaurant with Full-Service
For Sale
Contact for pricing
8575 South Avenue 40 East, Tacna, AZ 85352
Includes commercial kitchen equipment, furnishings, dining fixtures, and a liquor license.
Property Size5,100 SF
Price / SF$86.27
Days on Market157
Property Features for 8575 South Avenue 40 East
General Information
Standard status
Active
Size
5,100 SF
Property subtype
Business for Sale
Zoning
C-2
Restaurant
Equipment Included
Yes
Liquor License
Yes
Additional Details
Furnished
Yes
Highway Access
Yes
Building Details
Year Built
1979
Buildings
1
Units
1
Listing Agency:
The Realty Agency
(928) 446-7806
Listed By:
maria stefanakos · License #AZ SA699146000
Source:
Crexi
Added: Mar 28
Changed: Aug 31
Last Checked: Aug 31 at 12:25AM
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 The Realty Agency
Investment Insights
Based on property information with market context.
This 5,100-square-foot restaurant property at 8575 South Avenue 40 East includes a commercial kitchen, dining room furnishings, and a full-service bar. The freestanding building was constructed in 1979 and is offered with kitchen equipment and a liquor license.
Located in Tacna, Arizona, the property sits just off Interstate 8, providing direct access from a major transportation route. C-2 zoning supports its restaurant use, while the existing improvements provide an established physical framework for continued operation or a new concept.
Located in Tacna, Arizona, the property sits just off Interstate 8, providing direct access from a major transportation route. C-2 zoning supports its restaurant use, while the existing improvements provide an established physical framework for continued operation or a new concept.
Key Highlights
- 5,100‑square‑foot freestanding restaurant building
- Full‑service bar and furnished dining room
- Commercial kitchen with equipment included
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
$22,958
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
5.22%
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%
$459,160
$459.2K
Cap Rate 7%
$327,971
$328.0K
Cap Rate 9%
$255,089
$255.1K
Market Conditions
NOI Build-Up for 5,100 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
$35.2K $6.90/SF
− Vacancy
−$2.4K −$0.47/SF
EGI
$32.8K $6.43/SF
− OpEx
−$9.8K −$1.93/SF
NOI
$23.0K $4.50/SF
Area
Yuma County, AZ
Vacancy
6.80%
Lease Rate
$6.90 /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%
$459,160
Cap Rate 7%
$327,971
Cap Rate 9%
$255,089
Alternative Uses
Best Use
Specialty Retail
$2.62M
$2.29M – $3.06M
NOI $183,364 @ 7.0% cap · market cap 41.67%
Second Best
Industrial
$328.0K
$287.0K – $382.6K
NOI $22,958 @ 7.0% cap · market cap 5.22%
Theoretical Best
—
—
same as Best Use
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
Yes
Highway access
Yes
Liquor license
Location Intelligence
Trade Area within ½ mile
35
Businesses Nearby
Explore this area
Business Placement
Demographics for 85352, AZ
388
Population
198
Households
2
Avg Household Size
46
Median Age
17%
College-Educated
79%
High-School Grad
42.1 sq mi
ZIP Area
9
Density / Sq Mi
$41,552
Median Household Income
$23,008
Median Earnings
$548
Median Rent
Market
Vacancy Rate% for Retail 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?
Conventional restaurant - Includes commercial kitchen equipment, furnishings, dining fixtures, and a liquor license.
Where is this conventional restaurant located?
The property is located at 8575 South Avenue 40 East Tacna, AZ.
What is the asking price?
The asking price for this property is $440,000.
What are key features of this property?
This property features: 5,100‑square‑foot freestanding restaurant building; Full‑service bar and furnished dining room; Commercial kitchen with equipment included
