3257 SE Hawthorne Blvd
Portland, OR 97214
Tarboush Bistro Building · Retail Property For Sale

Marcus & Millichap has been chosen to exclusively market for sale the Tarboush Bistro Building located in Southeast Portland’s Sunnyside neighborhood. The building is wood construction and consists of approximately 5,000 square feet of gross leasable area situated on a 0.10-acre parcel of land. The property is zoned Central Employment (CM2), which allows for a variety of uses including retail, office and residential. The property is currently lease to Tarboush Bistro, an office tenant and a two bedroom apartment. There is off-street parking and outdoor patio space. The tenants each have the right to use one parking space as per the lease. The office and apartment tenants will likely be month-to-month at Closing, which provides the opportunity for an investor to immediately add value by increasing the below market rents to market rate. Market rent for the office suite is $26.00 NNN per square foot. Market rent for the two bedroom apartment is $1,800 per month. Tarboush Bistro’s current rent is more than 50% below market, however in 2020 they have one 5-year option to renew with 3% annual increases. If Tarboush does not renew or after their option expires, then an investor can bring their lease to market rate. Once the building is fully stabilized, an investor could expect a cap rate of approximately 7.70%