Updated Retail
New
For Sale
$299,000
1244 US Hwy 21 South, Sparta, NC 28675
Interior paint and flooring have been refreshed, with a metal roof installed approximately four years ago.
Property Size2,900 SF
Price / SF$103.10
Days on Market5
Property Features for 1244 US Hwy 21 South
General Information
Standard status
Active
Size
2,900 SF
Property subtype
Commercial
Taxes and HOA fees
Annual Taxes
$965
Amenities
Metal Roof
Ductless Heating
Fence
Gravel
Paved
Building Details
Year Built
1981
Listing Agency:
MOUNTAIN DREAMS REALTY
(336) 372-1622
Listed By:
JAMES PHIPPS
(336) 372-4283
Source:
Corcoran
Added: Sep 8
Changed: Sep 11
Last Checked: Sep 12 at 7:49AM
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 MOUNTAIN DREAMS REALTY
Investment Insights
Based on property information with market context.
This retail property offers approximately 2,900 square feet of commercial space along US Highway 21 South in Sparta. Recent work includes interior paint and flooring, while a 24,000 BTU mini-split system is being installed. The building also has a metal roof completed approximately four years ago and two walk-in coolers that require repair. Fuel tanks have been removed, and the property has a clean bill of health. A security fence encloses the lower portion of the site, adding a defined boundary to the property.
The rear of the property adjoins Little River, providing a distinct setting for a retail building with highway access. Constructed in 1981, the property is suited to continued commercial occupancy or repositioning for a new retail operation.
The rear of the property adjoins Little River, providing a distinct setting for a retail building with highway access. Constructed in 1981, the property is suited to continued commercial occupancy or repositioning for a new retail operation.
Key Highlights
- Approximately 2,900+/- square feet of retail space
- Located on US Hwy 21 South in Sparta, NC
- Interior updated with new paint and flooring
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
$26,309
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
8.80%
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%
$526,180
$526.2K
Cap Rate 7%
$375,843
$375.8K
Cap Rate 9%
$292,322
$292.3K
Market Conditions
NOI Build-Up for 2,900 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
$41.8K $14.40/SF
− Vacancy
−$4.2K −$1.44/SF
EGI
$37.6K $12.96/SF
− OpEx
−$11.3K −$3.89/SF
NOI
$26.3K $9.07/SF
Area
Alleghany County, NC
Vacancy
10.00%
Lease Rate
$14.40 /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%
$526,180
Cap Rate 7%
$375,843
Cap Rate 9%
$292,322
Alternative Uses
Best Use
Retail
$375.8K
$328.9K – $438.5K
NOI $26,309 @ 7.0% cap · market cap 8.80%
Second Best
Specialty Retail
$375.3K
$328.4K – $437.8K
NOI $26,270 @ 7.0% cap · market cap 8.79%
Theoretical Best
Office A
$630.0K
$551.2K – $735.0K
NOI $44,099 @ 7.0% cap · market cap 14.75%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
43
Businesses Nearby
Explore this area
Business Placement
Demographics for 28675, NC
6,138
Population
3,867
Households
1.6
Avg Household Size
50
Median Age
24%
College-Educated
84%
High-School Grad
107.4 sq mi
ZIP Area
57
Density / Sq Mi
$44,137
Median Household Income
$29,686
Median Earnings
$717
Median Rent
$202,100
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?
Retail space - Interior paint and flooring have been refreshed, with a metal roof installed approximately four years ago.
Where is this retail space located?
The property is located at 1244 US Hwy 21 South Sparta, NC.
What is the asking price?
The asking price for this property is $299,000.
What are key features of this property?
This property features: Approximately 2,900+/- square feet of retail space; Located on US Hwy 21 South in Sparta, NC; Interior updated with new paint and flooring
