Keizer Commercial Lot with
For Sale
Contact for pricing
4140 River Rd N, Keizer, OR 97303
Half-acre commercial lot with established restaurant tenant in Keizer.
Property Size1,991 SF
Lot Size0.50 Acres
Price / SF$419.39
Days on Market1040
Property Features for 4140 River Rd N
General Information
Standard status
Active
Size
1,991 SF
Class
C
Total Parking Spaces
20
Lot size
0.50 Acres
Property subtype
Retail
Zoning
MU
Occupancy
100%
Lease Type
NNN
Investment Type
Stabilized
Net Operating Income
$44,968
Building Details
Year Built
1977
Buildings
1
Stories
3
Units
1
Tenancy
Single
Listing Agency:
John L. Scott Real Estate Salem
(541) 514-1779
Listed By:
Alex McCarthy · License #201245596
Source:
Crexi
Added: Oct 16, 2023
Changed: Aug 14
Last Checked: Aug 19 at 4:47PM
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 John L. Scott Real Estate Salem
Investment Insights
Based on property information with market context.
This property presents a rare opportunity to acquire a half-acre commercial lot situated on the main road of Keizer, Oregon. The existing structure, a 1991 square foot converted residence originally built in 1977 with a full, unfinished basement, currently houses a long-term, locally-known restaurant tenant. The tenant operates under a triple net, month-to-month lease, offering flexibility and immediate cash flow. The property benefits from its location along a high-traffic main road, surrounded by a mix of businesses and residential areas, and is zoned for mixed use. The average daily traffic count on River Road is 28,000. Cherry Avenue's bifurcation on the opposite side of the property provides access to and from MLK Blvd. The current tenant, Sweet Home Thai Cuisine, has been operating successfully at this location for over 10 years and is open to signing a new lease with the buyer or vacating to accommodate a new occupant or development plans. Seller-carried financing terms are available. The City of Keizer has approved the removal of the perimeter Douglas Fir trees, which do not align with the surrounding environment; this timber can be harvested. A cell tower easement and rights were recently sold and are not included in the sale. However, the tower easement now has a 35-year sunset, reverting back to the main property, at which time the owner will receive monthly rent from Verizon Wireless. The property is suitable for various uses, given its commercial zoning and high-traffic location.
Key Highlights
- Half‑acre commercial lot on a high‑traffic main road (28k daily count) in Keizer, Oregon.
- Existing long‑term restaurant tenant provides immediate cash flow with flexible month‑to‑month lease terms.
- Zoned for mixed‑use, offering diverse development or occupancy possibilities.
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
$32,777
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
3.93%
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%
$655,540
$655.5K
Cap Rate 7%
$468,243
$468.2K
Cap Rate 9%
$364,189
$364.2K
Market Conditions
NOI Build-Up for 1,991 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
$64.3K $32.28/SF
− Vacancy
−$20.6K −$10.33/SF
EGI
$43.7K $21.95/SF
− OpEx
−$10.9K −$5.49/SF
NOI
$32.8K $16.46/SF
Area
Marion County, OR
Vacancy
32.00%
Lease Rate
$32.28 /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%
$655,540
Cap Rate 7%
$468,243
Cap Rate 9%
$364,189
Alternative Uses
Best Use
Specialty Retail
$468.2K
$409.7K – $546.3K
NOI $32,777 @ 7.0% cap · market cap 3.93%
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
816
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 97303, OR
41,441
Population
15,740
Households
2.6
Avg Household Size
38
Median Age
27%
College-Educated
90%
High-School Grad
24.9 sq mi
ZIP Area
1,664
Density / Sq Mi
$81,057
Median Household Income
$45,034
Median Earnings
$1,361
Median Rent
$396,700
Median Home Value
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 - Half-acre commercial lot with established restaurant tenant in Keizer.
Where is this conventional restaurant located?
The property is located at 4140 River Rd N Keizer, OR.
What is the asking price?
The asking price for this property is $835,000.
What are key features of this property?
This property features: Half‑acre commercial lot on a high‑traffic main road (28k daily count) in Keizer, Oregon.; Existing long‑term restaurant tenant provides immediate cash flow with flexible month‑to‑month lease terms.; Zoned for mixed‑use, offering diverse development or occupancy possibilities.
