Absolute NNN Restaurant
For Sale
$1,813,000
9174 Mentor Avenue, Mentor, OH 44060
Operating restaurant asset with an absolute NNN ground lease and established national-brand tenancy.
Property Size5,309 SF
Days on Market65
Property Features for 9174 Mentor Avenue
General Information
Standard status
Active
Size
5,309 SF
Property subtype
Commercial
Occupancy
100%
Lease Term
± 3.5 Years
Net Operating Income
$95,198
Building Details
Building Size
5,309 SF
Year Built
1994
Tenancy
Single
Listing Agency:
Matthews Real Estate Investment Services - Orange County
(949) 432-4504
Listed By:
Connor Olandt · License #01985082 (CA)
(949) 432-4504
Source:
Matthews
Added: Jun 28
Changed: Aug 30
Last Checked: Aug 30 at 11:14PM
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 Matthews Real Estate Investment Services - Orange County
Investment Insights
Based on property information with market context.
This restaurant property at 9174 Mentor Avenue in Mentor, Ohio, is subject to an absolute NNN ground lease and has been occupied by Applebee’s since 1994. The building was constructed in 1994, and the lease is scheduled to reach its end in eight years following multiple exercised renewal options.
The property is part of Mentor Commons, a Meijer-anchored shopping center along Mentor Avenue. Surrounding national retailers include Walmart, Target, Trader Joe’s, Lowe’s, Kohl’s, and Great Lakes Mall. More than 105,000 residents live within a 5-mile radius, with average household incomes exceeding $133,000.
The property is part of Mentor Commons, a Meijer-anchored shopping center along Mentor Avenue. Surrounding national retailers include Walmart, Target, Trader Joe’s, Lowe’s, Kohl’s, and Great Lakes Mall. More than 105,000 residents live within a 5-mile radius, with average household incomes exceeding $133,000.
Key Highlights
- Absolute NNN ground lease at 9174 Mentor Avenue
- Applebee’s has occupied the property since 1994
- Eight years remain until the lease end
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
$56,979
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
3.14%
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%
$1,139,580
$1.1M
Cap Rate 7%
$813,986
$814.0K
Cap Rate 9%
$633,100
$633.1K
Market Conditions
NOI Build-Up for 5,309 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
$79.6K $15.00/SF
− Vacancy
−$3.7K −$0.69/SF
EGI
$76.0K $14.31/SF
− OpEx
−$19.0K −$3.58/SF
NOI
$57.0K $10.73/SF
Area
Lake County, OH
Vacancy
4.60%
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%
$1,139,580
Cap Rate 7%
$813,986
Cap Rate 9%
$633,100
Alternative Uses
Best Use
Specialty Retail
$814.0K
$712.2K – $949.7K
NOI $56,979 @ 7.0% cap · market cap 3.14%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.23M
$1.07M – $1.43M
NOI $85,833 @ 7.0% cap · market cap 4.73%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
100%
Occupancy
Single-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
824
Businesses Nearby
Explore this area
Business Placement
Demographics for 44060, OH
60,360
Population
27,276
Households
2.2
Avg Household Size
47
Median Age
35%
College-Educated
96%
High-School Grad
39.9 sq mi
ZIP Area
1,513
Density / Sq Mi
$85,881
Median Household Income
$51,736
Median Earnings
$1,156
Median Rent
$227,200
Median Home Value
Market
Vacancy Rate% for Retail in Midwest 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?
NNN property - Operating restaurant asset with an absolute NNN ground lease and established national-brand tenancy.
Where is this nnn property located?
The property is located at 9174 Mentor Avenue Mentor, OH.
What is the asking price?
The asking price for this property is $1,813,000.
What are key features of this property?
This property features: Absolute NNN ground lease at 9174 Mentor Avenue; Applebee’s has occupied the property since 1994; Eight years remain until the lease end
