Downtown Fayetteville Commercial
For Sale
Contact for pricing
123 Hay St, Fayetteville, NC 28301
Adaptable commercial property in downtown Fayetteville with strong foot traffic.
Property Size10,924 SF
Price / SF$182.98
Days on Market168
Property Features for 123 Hay St
General Information
Standard status
Active
Size
10,924 SF
Class
B
Property subtype
Retail
Zoning
DT - Downtown
Building Details
Year Built
1900
Year Renovated
2023
Buildings
1
Stories
2
Listing Agency:
Franklin Johnson Commercial Real Estate
(910) 257-6035
Listed By:
Franklin Johnson · License #NC 146789
Source:
Crexi
Added: Feb 25
Changed: Aug 9
Last Checked: Aug 11 at 6:33PM
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 Franklin Johnson Commercial Real Estate
Investment Insights
Based on property information with market context.
Located in downtown Fayetteville, this commercial property benefits from strong foot traffic and visibility. The space was originally built out for a brewery and includes existing infrastructure such as walk-in coolers and a finished bar area, though no brewery equipment remains. The open layout provides flexibility for various uses, including a brewery, restaurant, or bar. There is potential to develop an upstairs level into an additional bar or lounge area. The adaptable floor plan also makes the property suitable for conversion into creative office space or a modern workplace environment. The property size is 10924 square feet.
Key Highlights
- High foot traffic, excellent visibility in downtown Fayetteville.
- Existing infrastructure for a brewery/bar, including walk‑in coolers and finished bar area.
- Flexible, open layout suitable for brewery, restaurant, bar, or office space.
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
$157,778
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
7.89%
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%
$3,155,560
$3.2M
Cap Rate 7%
$2,253,971
$2.3M
Cap Rate 9%
$1,753,089
$1.8M
Market Conditions
NOI Build-Up for 10,924 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
$222.8K $20.40/SF
− Vacancy
−$12.5K −$1.14/SF
EGI
$210.4K $19.26/SF
− OpEx
−$52.6K −$4.81/SF
NOI
$157.8K $14.44/SF
Area
Fayetteville, NC
Vacancy
5.60%
Lease Rate
$20.40 /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%
$3,155,560
Cap Rate 7%
$2,253,971
Cap Rate 9%
$1,753,089
Alternative Uses
Best Use
Specialty Retail
$2.25M
$1.97M – $2.63M
NOI $157,778 @ 7.0% cap · market cap 7.89%
Second Best
Industrial
$1.59M
$1.39M – $1.85M
NOI $111,178 @ 7.0% cap · market cap 5.56%
Theoretical Best
Office A
$2.39M
$2.09M – $2.79M
NOI $167,583 @ 7.0% cap · market cap 8.38%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,974
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 28301, NC
17,670
Population
8,590
Households
2.1
Avg Household Size
35
Median Age
17%
College-Educated
88%
High-School Grad
12.4 sq mi
ZIP Area
1,425
Density / Sq Mi
$36,955
Median Household Income
$28,350
Median Earnings
$926
Median Rent
$109,900
Median Home Value
Market
Vacancy Rate% for Industrial in South region
Questions? Ask Rey
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- Bruce's Sportsbloc and Lounge — 126 Person St, Fayetteville, NC 28301
Frequently Asked Questions
What type of property is this?
Bar & Pub - Adaptable commercial property in downtown Fayetteville with strong foot traffic.
Where is this bar & pub located?
The property is located at 123 Hay St Fayetteville, NC.
What is the asking price?
The asking price for this property is $1,998,900.
What are key features of this property?
This property features: High foot traffic, excellent visibility in downtown Fayetteville.; Existing infrastructure for a brewery/bar, including walk‑in coolers and finished bar area.; Flexible, open layout suitable for brewery, restaurant, bar, or office space.
