Mixed-Use Building with
For Sale
$1,789,000
125 Franklin St, Clarksville, TN 37040
For sale mixed-use property with a fully built-out restaurant space, storefront, and four leased residential units in downtown Clarksville.
Property Size9,575 SF
Days on Market99
Property Features for 125 Franklin St
General Information
Standard status
Active
Size
9,575 SF
Property subtype
Multifamily
Additional Details
Multifamily Units
4
Amenities
Mixed-use asset in downtown Clarksville with both commercial and residential income
Fully built out restaurant space in place with bar and high-capacity layout
An additional storefront along Strawberry Alley provides a second commercial revenue stream
Four fully furnished residential units with in-place cash flow
A diversified income stream reduces reliance on any single tenant type
Located in the core of downtown with strong foot traffic and visibility
Building Details
Building Size
9,575 SF
Units
6
Listed By:
Pat Cosgrove · License #License(s): TN: 341774
(615) 997-2853
Source:
Marcusmillichap
Added: Jun 1
Changed: Aug 25
Last Checked: Sep 7 at 4:37AM
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 Pat Cosgrove
Investment Insights
Based on property information with market context.
This mixed-use property at 125 Franklin Street includes a fully built-out restaurant space, an additional storefront along Strawberry Alley, and four leased residential units. The residential component provides stabilized income alongside the commercial space.
The building is located in the core of downtown Clarksville, TN, with proximity to Austin Peay State University and F&M Bank Arena.
The seller is offering the asset for sale with offers to be presented as a non-binding Letter of Intent detailing key terms and conditions, including purchase price, due diligence and closing time frame, earnest money deposit, debt/equity structure description, and qualification to close. Purchase terms require all cash to be paid at closing.
The building is located in the core of downtown Clarksville, TN, with proximity to Austin Peay State University and F&M Bank Arena.
The seller is offering the asset for sale with offers to be presented as a non-binding Letter of Intent detailing key terms and conditions, including purchase price, due diligence and closing time frame, earnest money deposit, debt/equity structure description, and qualification to close. Purchase terms require all cash to be paid at closing.
Key Highlights
- Mixed‑use property at 125 Franklin Street in downtown Clarksville, TN
- Includes a fully built‑out restaurant space plus an additional storefront on Strawberry Alley
- Four leased residential units provide diversified, immediate residential income
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
$105,754
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
5.91%
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%
$2,115,080
$2.1M
Cap Rate 7%
$1,510,771
$1.5M
Cap Rate 9%
$1,175,044
$1.2M
Market Conditions
NOI Build-Up for 9,575 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
$149.4K $15.60/SF
− Vacancy
−$8.4K −$0.87/SF
EGI
$141.0K $14.73/SF
− OpEx
−$35.3K −$3.68/SF
NOI
$105.8K $11.04/SF
Area
Clarksville, TN
Vacancy
5.60%
Lease Rate
$15.60 /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%
$2,115,080
Cap Rate 7%
$1,510,771
Cap Rate 9%
$1,175,044
Alternative Uses
Best Use
Specialty Retail
$1.51M
$1.32M – $1.76M
NOI $105,754 @ 7.0% cap · market cap 5.91%
Second Best
Retail
$1.30M
$1.14M – $1.52M
NOI $91,111 @ 7.0% cap · market cap 5.09%
Theoretical Best
Office A
$1.61M
$1.41M – $1.88M
NOI $112,510 @ 7.0% cap · market cap 6.29%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
4
Residential units
Location Intelligence
Trade Area within ½ mile
1,573
Businesses Nearby
Explore this area
Business Placement
Demographics for 37040, TN
60,382
Population
24,628
Households
2.5
Avg Household Size
31
Median Age
30%
College-Educated
94%
High-School Grad
92.8 sq mi
ZIP Area
651
Density / Sq Mi
$65,331
Median Household Income
$40,621
Median Earnings
$1,177
Median Rent
$242,400
Median Home Value
Market
Vacancy Rate% for Multifamily in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Quadplex - For sale mixed-use property with a fully built-out restaurant space, storefront, and four leased residential units in downtown Clarksville.
Where is this quadplex located?
The property is located at 125 Franklin St Clarksville, TN.
What is the asking price?
The asking price for this property is $1,789,000.
What are key features of this property?
This property features: Mixed‑use property at 125 Franklin Street in downtown Clarksville, TN; Includes a fully built‑out restaurant space plus an additional storefront on Strawberry Alley; Four leased residential units provide diversified, immediate residential income
