Chapel Hill Retail Investment
For Sale
$5,000,000
109 East Franklin Street, Chapel Hill, NC 27514
Two buildings totaling 13,507 SF in Chapel Hill, NC.
Property Size13,507 SF
Price / SF$370.18
Days on Market150
Property Features for 109 East Franklin Street
General Information
Standard status
Active
Size
13,507 SF
Property subtype
Retail
Listing Agency:
CBRE Charlotte
(919) 831-8268
Listed By:
Matt Larson · License #222966
(919) 831-8268
Source:
Cbre
Added: Mar 25
Changed: Aug 15
Last Checked: Aug 21 at 12:45PM
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 CBRE Charlotte
Investment Insights
Based on property information with market context.
Located in Chapel Hill, North Carolina, 109-117 East Franklin Street offers an investment opportunity along a well-known street. The property consists of two buildings with a total area of 13,507 square feet. The buildings are occupied by local tenants that serve the surrounding community. Franklin Street is considered a central location for social activity for the University of North Carolina and the town of Chapel Hill. Chapel Hill is home to the University of North Carolina at Chapel Hill, which has over 30,000 students, and the UNC Medical Center, which serves over 37,000 people annually.
Key Highlights
- Located on iconic Franklin Street, the center of social life for the University of North Carolina and Chapel Hill.
- Investment opportunity in Chapel Hill, North Carolina.
- Comprised of two buildings totaling 13,507 square feet.
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
$157,424
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
3.15%
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%
$3,148,480
$3.1M
Cap Rate 7%
$2,248,914
$2.2M
Cap Rate 9%
$1,749,156
$1.7M
Market Conditions
NOI Build-Up for 13,507 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
$243.1K $18.00/SF
− Vacancy
−$18.2K −$1.35/SF
EGI
$224.9K $16.65/SF
− OpEx
−$67.5K −$5.00/SF
NOI
$157.4K $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%
$3,148,480
Cap Rate 7%
$2,248,914
Cap Rate 9%
$1,749,156
Alternative Uses
Best Use
Retail
$2.25M
$1.97M – $2.62M
NOI $157,424 @ 7.0% cap · market cap 3.15%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$4.36M
$3.82M – $5.09M
NOI $305,309 @ 7.0% cap · market cap 6.11%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,994
Businesses Nearby
66k
Monthly Visits Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Dining 82%
Shops & Services 18%
McDonald's
Dining
19,905 visits/mo
0.3 miles
Chipotle Mexican Grill
Dining
15,208 visits/mo
0.3 miles
Panera Bread
Dining
12,942 visits/mo
0.2 miles
State Employees Credit Union
Shops & Services
3,904 visits/mo
0.5 miles
Cold Stone Creamery
Dining
3,290 visits/mo
0.1 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
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Frequently Asked Questions
What type of property is this?
Storefront property - Two buildings totaling 13,507 SF in Chapel Hill, NC.
Where is this storefront property located?
The property is located at 109 East Franklin Street Chapel Hill, NC.
What is the asking price?
The asking price for this property is $5,000,000.
What are key features of this property?
This property features: Located on iconic Franklin Street, the center of social life for the University of North Carolina and Chapel Hill.; Investment opportunity in Chapel Hill, North Carolina.; Comprised of two buildings totaling 13,507 square feet.
