Chapel Hill Freestanding
For Sale
Contact for pricing
110 S Estes Dr, Chapel Hill, NC 27514
Two-story building on 0.66 acres in established commercial corridor.
Property Size9,800 SF
Lot Size0.66 Acres
Price / SF$193.88
Days on Market198
Property Features for 110 S Estes Dr
General Information
Standard status
Active
Size
9,800 SF
Class
B
Total Parking Spaces
44
Lot size
0.66 Acres
Property subtype
Multifamily, Mixed Use, Land
Zoning
CC/R2 | Medical Office/Retail
Lease Type
NNN
Investment Type
Redevelopment
Net Operating Income
$278,078
Building Details
Year Built
1980
Year Renovated
2024
Buildings
1
Stories
2
Units
1
Tenancy
Single
Listing Agency:
SAB Capital
Listed By:
Asher Wenig · License #10301219652
Source:
Crexi
Added: Feb 3
Changed: Aug 19
Last Checked: Aug 19 at 6:39AM
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 SAB Capital
Investment Insights
Based on property information with market context.
Located at 110 S Estes Drive in Chapel Hill, North Carolina, this property features a 9,800 square foot, two-story freestanding building on 0.66 acres. Situated within one of Chapel Hill’s established commercial corridors, the property benefits from visibility and access along S Estes Drive, with exposure to approximately 15,500 vehicles per day. The site includes 44 parking spaces, yielding a parking ratio of 4.49 per 1,000 square feet. The property is currently subject to a NNN lease with Wake Radiology Services through December 31, 2026, generating approximately $278,078 in net operating income. The property is positioned just off University Place, a mixed-use destination. The surrounding area features dense residential neighborhoods and strong daily traffic. The asset is located near the University of North Carolina at Chapel Hill, serving more than 68,000 residents within a three-mile radius with an average household income exceeding $134,000. Zoned CC/R2 and currently configured for medical office/retail use, the existing building footprint and infrastructure lend themselves well to re-leasing, adaptive reuse, or repositioning into single-tenant or multi-tenant retail, medical, quick-service, automotive, or service-oriented concepts.
Key Highlights
- Premier location in a supply‑constrained commercial corridor of Chapel Hill, near University Place and the University of North Carolina at Chapel Hill.
- Short‑term NNN lease with Wake Radiology Services in place through December 31, 2026, providing approximately $278,078 in net operating income.
- Significant flexibility for investors or developers due to the short lease term, allowing for planning and execution of a longer‑term strategy (re‑leasing, adaptive reuse, or redevelopment).
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
$114,219
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
6.01%
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%
$2,284,380
$2.3M
Cap Rate 7%
$1,631,700
$1.6M
Cap Rate 9%
$1,269,100
$1.3M
Market Conditions
NOI Build-Up for 9,800 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
$176.4K $18.00/SF
− Vacancy
−$13.2K −$1.35/SF
EGI
$163.2K $16.65/SF
− OpEx
−$49.0K −$5.00/SF
NOI
$114.2K $11.66/SF
Area
Orange County, NC
Vacancy
7.50%
Lease Rate
$18.00 /SF/Yr
Expense Ratio
30.00%
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%
$2,284,380
Cap Rate 7%
$1,631,700
Cap Rate 9%
$1,269,100
Alternative Uses
Best Use
Retail
$1.63M
$1.43M – $1.90M
NOI $114,219 @ 7.0% cap · market cap 6.01%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$3.16M
$2.77M – $3.69M
NOI $221,517 @ 7.0% cap · market cap 11.66%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,259
Businesses Nearby
132k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 49%
Dining 24%
Groceries 23%
Electronics 1%
Harris Teeter
Groceries
30,591 visits/mo
0.4 miles
Circle K
Shops & Services
22,004 visits/mo
0.5 miles
Circle K
Shops & Services
14,820 visits/mo
0.1 miles
Dunkin' Donuts
Dining
12,111 visits/mo
0.2 miles
Bartaco
Dining
10,866 visits/mo
0.3 miles
Demographics for 27514, NC
33,809
Population
11,470
Households
2.9
Avg Household Size
27
Median Age
80%
College-Educated
98%
High-School Grad
19.6 sq mi
ZIP Area
1,725
Density / Sq Mi
$94,167
Median Household Income
$25,145
Median Earnings
$1,491
Median Rent
$628,700
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?
Retail space - Two-story building on 0.66 acres in established commercial corridor.
Where is this retail space located?
The property is located at 110 S Estes Dr Chapel Hill, NC.
What is the asking price?
The asking price for this property is $1,900,000.
What are key features of this property?
This property features: Premier location in a supply‑constrained commercial corridor of Chapel Hill, near University Place and the University of North Carolina at Chapel Hill.; Short‑term NNN lease with Wake Radiology Services in place through December 31, 2026, providing approximately $278,078 in net operating income.; Significant flexibility for investors or developers due to the short lease term, allowing for planning and execution of a longer‑term strategy (re‑leasing, adaptive reuse, or redevelopment).
