Historic Brick Restaurant
For Sale
$2,100,000
106 S Ray Street, Carthage, NC 28327
COMMERCIAL - Carthage, NC
Property Size5,500 SF
Lot Size0.41 Acres
Price / SF$381.82
Days on Market120
Property Features for 106 S Ray Street
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning
CBD
Rooms
Basement
Fireplace
1
Subdivision
Not In Subdivision
Lot features
Corner Lot
Directions
From Pinehurst Circle, take exit onto US-15 N/US-501 N, turn left onto NC022N/S McNeill St, turn left onto Monroe St, at Carthage traffic circle take exit onto Courthouse Square/McReynolds St, property will be at the next intersection on the left at the corner of McReynolds St and S Ray St.
Special listing conditions
Short Sale
Standard status
Active
APN
00006871
Size
5,500 SF
Lot size
0.41 Acres
Taxes and HOA fees
Tax Year
2025
Tax Description
WEAVING PLANT, OFFICE BLDG, ADJ OFFICE
Tax Annual Amount
4580
Legal Description
WEAVING PLANT, OFFICE BLDG, ADJ OFFICE
Utilities
Heating system
Electric (Heating)
Amenities
pavilion
Building Details
Year built
1906
Building materials
Brick
Listing Agency:
Carolina Summit Group, LLC
(910) 684-5353
Listed By:
Holly Spofford Bell · License #252152
(910) 690-1065
Added: Apr 22
Changed: Aug 19
Last Checked: Aug 19 at 11:06PM
MLS# 100568861
Copyright © 2026 Hive MLS. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
This two-story brick restaurant building contains 5,500 square feet on three parcels totaling 0.41 acres. Constructed in 1906 and renovated in 2023, the property includes a basement, electric heating, and a fireplace. The interior is configured for food and beverage operations, while an outdoor pavilion provides additional space for seating or events.
The property is located in Carthage and carries CBD zoning. Parking surrounds the building and is owned by the Town of Carthage. The sale is subject to deed restrictions and the Town of Carthage’s right of first refusal.
The property is located in Carthage and carries CBD zoning. Parking surrounds the building and is owned by the Town of Carthage. The sale is subject to deed restrictions and the Town of Carthage’s right of first refusal.
Key Highlights
- 5,500 SF two‑story brick restaurant building
- Built in 1906 and renovated in 2023
- Three parcels totaling 0.41 acres
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
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 - Two-story restaurant property with a pavilion, basement, and commercial zoning in downtown Carthage.
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; Built in 1906 and renovated in 2023; Three parcels totaling 0.41 acres
