Turnkey Corner Restaurant
For Sale
$2,100,000
106 S Ray Street, Carthage, NC 28327
Renovated two-story brick restaurant building with food-and-beverage setup and an outdoor pavilion event area.
Property Size5,500 SF
Lot Size0.41 Acres
Price / SF$381.82
Days on Market124
Property Features for 106 S Ray Street
General Information
Standard status
Active
Size
5,500 SF
Lot size
0.41 Acres
Property subtype
Commercial
Zoning
CBD
Additional Details
Business Included
Yes
Building Details
Building Size
5,500 SF
Year Built
1906
Year Renovated
2023
Stories
2
Listing Agency:
Carolina Summit Group, LLC
(910) 690-1065
Listed By:
Holly Spofford Bell · License #252152
(910) 690-1065
Source:
Thomasrealtysold
Added: Apr 22
Changed: Aug 23
Last Checked: Aug 22 at 11:29AM
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 Carolina Summit Group, LLC
Investment Insights
Based on property information with market context.
Turnkey two-story brick restaurant building originally built in 1906 and fully renovated in 2023. The property totals 5,500 SF and is configured for food and beverage use, offering a ready-to-operate setting for a hospitality concept. In addition to indoor space, the property includes an outdoor area with a pavilion for events and expanded seating.
The building is prominently positioned on a corner lot in Carthage, NC, located at the intersection of N Ray St and McReynolds St. The property spans three parcels totaling 0.41 acres and provides surrounding parking that is owned by the Town of Carthage.
This is a short sale subject to deed restrictions, and the Town of Carthage holds a right of first refusal.
The building is prominently positioned on a corner lot in Carthage, NC, located at the intersection of N Ray St and McReynolds St. The property spans three parcels totaling 0.41 acres and provides surrounding parking that is owned by the Town of Carthage.
This is a short sale subject to deed restrictions, and the Town of Carthage holds a right of first refusal.
Key Highlights
- 5,500 SF, two‑story brick restaurant building originally built in 1906
- Fully renovated in 2023 and most recently used as The Buggy Factory by Southern Pines Brewing
- Restaurant space is already configured for food‑and‑beverage use
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
$73,361
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
3.49%
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%
$1,467,220
$1.5M
Cap Rate 7%
$1,048,014
$1.0M
Cap Rate 9%
$815,122
$815.1K
Market Conditions
NOI Build-Up for 5,500 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
$104.3K $18.96/SF
− Vacancy
−$6.5K −$1.18/SF
EGI
$97.8K $17.78/SF
− OpEx
−$24.5K −$4.45/SF
NOI
$73.4K $13.34/SF
Area
Moore County, NC
Vacancy
6.20%
Lease Rate
$18.96 /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%
$1,467,220
Cap Rate 7%
$1,048,014
Cap Rate 9%
$815,122
Alternative Uses
Best Use
Specialty Retail
$1.05M
$917.0K – $1.22M
NOI $73,361 @ 7.0% cap · market cap 3.49%
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
Lease Details
Turnkey business
Opportunity
Location Intelligence
Trade Area within ½ mile
253
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 28327, NC
18,118
Population
7,874
Households
2.3
Avg Household Size
40
Median Age
36%
College-Educated
94%
High-School Grad
186.6 sq mi
ZIP Area
97
Density / Sq Mi
$84,850
Median Household Income
$43,066
Median Earnings
$1,362
Median Rent
$299,500
Median Home Value
Market
Vacancy Rate% for Retail in South 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 - Renovated two-story brick restaurant building with food-and-beverage setup and an outdoor pavilion event area.
Where is this conventional restaurant located?
The property is located at 106 S Ray Street Carthage, NC.
What is the asking price?
The asking price for this property is $2,100,000.
What are key features of this property?
This property features: 5,500 SF, two‑story brick restaurant building originally built in 1906; Fully renovated in 2023 and most recently used as The Buggy Factory by Southern Pines Brewing; Restaurant space is already configured for food‑and‑beverage use
