Downtown Hillsborough Commercial Building
For Sale
$1,100,000
110 N Churton Street, Hillsborough, NC 27278
Commercial building in downtown Hillsborough with redevelopment potential.
Property Size3,261 SF
Days on Market184
Property Features for 110 N Churton Street
General Information
Standard status
Active
Size
3,261 SF
Class
B
Property subtype
Office
Building Details
Building Size
3,261 SF
Year Built
1925
Listing Agency:
SVN | Real Estate Associates
Listed By:
Carey Greene · License #266741
(919) 949-5672
Source:
Svn
Added: Mar 6
Changed: Aug 21
Last Checked: Sep 5 at 4:57AM
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 SVN | Real Estate Associates
Investment Insights
Based on property information with market context.
Located in the heart of downtown Hillsborough, North Carolina, 110 N. Churton Street, also known as the Sawyer Building, presents a commercial real estate opportunity. The property is situated along Churton Street in the town’s historic core. It benefits from visibility, walkability, and long-term demand. The property is currently leased with a short remaining term. Located within the Hillsborough Historic District, exterior modifications are subject to Certificate of Appropriateness review. There is potential for state and federal Historic Tax Credits for qualified rehabilitation costs. The location provides access to shops, restaurants, and civic resources. The property is positioned for commercial use, owner-occupancy, or adaptive reuse.
Key Highlights
- Prime downtown Hillsborough location with high visibility and walkability
- Potential for state and federal Historic Tax Credits for qualified rehabilitation
- Rare opportunity to acquire a commercial building in downtown Hillsborough
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
$50,363
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
4.58%
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%
$1,007,260
$1.0M
Cap Rate 7%
$719,471
$719.5K
Cap Rate 9%
$559,589
$559.6K
Market Conditions
NOI Build-Up for 3,261 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
$81.4K $24.96/SF
− Vacancy
−$14.2K −$4.37/SF
EGI
$67.2K $20.59/SF
− OpEx
−$16.8K −$5.15/SF
NOI
$50.4K $15.44/SF
Area
Orange County, NC
Vacancy
17.50%
Lease Rate
$24.96 /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%
$1,007,260
Cap Rate 7%
$719,471
Cap Rate 9%
$559,589
Alternative Uses
Best Use
Office B
$719.5K
$629.5K – $839.4K
NOI $50,363 @ 7.0% cap · market cap 4.58%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.05M
$921.4K – $1.23M
NOI $73,711 @ 7.0% cap · market cap 6.70%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
560
Businesses Nearby
Explore this area
Business Placement
Demographics for 27278, NC
28,846
Population
12,328
Households
2.3
Avg Household Size
43
Median Age
54%
College-Educated
91%
High-School Grad
103.7 sq mi
ZIP Area
278
Density / Sq Mi
$101,821
Median Household Income
$51,380
Median Earnings
$1,294
Median Rent
$380,000
Median Home Value
Market
Vacancy Rate% for Office 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?
Office building - Commercial building in downtown Hillsborough with redevelopment potential.
Where is this office building located?
The property is located at 110 N Churton Street Hillsborough, NC.
What is the asking price?
The asking price for this property is $1,100,000.
What are key features of this property?
This property features: Prime downtown Hillsborough location with **high visibility and walkability**; Potential for state and federal Historic Tax Credits for qualified rehabilitation; Rare opportunity to acquire a commercial building in downtown Hillsborough
