Historic Mixed-Use
New
For Sale
$875,000
126 Monroe Ave, Memphis, TN 38103
Restaurant, retail, and residential components create a flexible downtown commercial configuration.
Property Size10,187 SF
Price / SF$85.89
Days on Market2
Property Features for 126 Monroe Ave
General Information
Standard status
Active
Size
10,187 SF
Property subtype
Retail
Additional Details
Asking Price
$875,000
Building Details
Building Size
10,187 SF
Year Built
1890
Listing Agency:
NAI Saig Company
(901) 590-9997
Listed By:
James McCraw, CCIM · License #TN #340992
Source:
Naiglobal
Added: Aug 8
Changed: Aug 9
Last Checked: Aug 9 at 2:16PM
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 NAI Saig Company
Investment Insights
Based on property information with market context.
This mixed-use property combines restaurant, retail, and residential space across three downtown addresses. The improvements total 10,187 SF and date to 1890, with historic architecture and character. A 3,000 SF second-generation restaurant area includes existing restaurant infrastructure, while a 1,000 SF street-level storefront provides a separate retail component. Two apartment units add residential space to the overall configuration.
The property is located at 126 Monroe Ave, 128 Monroe Ave, and 25 S Second Street in Downtown Memphis, near Court Square and Main Street. Its existing mix of commercial and residential improvements supports restaurant, retail, entertainment, mixed-use, and live/work concepts, subject to applicable approvals and requirements.
The property is located at 126 Monroe Ave, 128 Monroe Ave, and 25 S Second Street in Downtown Memphis, near Court Square and Main Street. Its existing mix of commercial and residential improvements supports restaurant, retail, entertainment, mixed-use, and live/work concepts, subject to applicable approvals and requirements.
Key Highlights
- 10,187 SF mixed‑use property across 126 Monroe Ave, 128 Monroe Ave, and 25 S Second Street
- 3,000 SF second‑generation restaurant area with existing restaurant infrastructure
- 1,000 SF street‑level retail storefront
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
$76,065
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
8.69%
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%
$1,521,300
$1.5M
Cap Rate 7%
$1,086,643
$1.1M
Cap Rate 9%
$845,167
$845.2K
Market Conditions
NOI Build-Up for 10,187 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
$147.9K $14.52/SF
− Vacancy
−$9.6K −$0.94/SF
EGI
$138.3K $13.58/SF
− OpEx
−$62.2K −$6.11/SF
NOI
$76.1K $7.47/SF
Area
Memphis, TN
Vacancy
6.50%
Lease Rate
$14.52 /SF/Yr
Expense Ratio
45.00%
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%
$1,521,300
Cap Rate 7%
$1,086,643
Cap Rate 9%
$845,167
Alternative Uses
Best Use
Mixed Use
$1.77M
$1.55M – $2.06M
NOI $123,772 @ 7.0% cap · market cap 14.15%
Second Best
Specialty Retail
$1.75M
$1.53M – $2.04M
NOI $122,580 @ 7.0% cap · market cap 14.01%
Theoretical Best
Office A
$3.01M
$2.63M – $3.51M
NOI $210,749 @ 7.0% cap · market cap 24.09%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
3,959
Businesses Nearby
Explore this area
Business Placement
Demographics for 38103, TN
14,739
Population
8,811
Households
1.7
Avg Household Size
35
Median Age
61%
College-Educated
95%
High-School Grad
2.7 sq mi
ZIP Area
5,459
Density / Sq Mi
$75,763
Median Household Income
$60,918
Median Earnings
$1,575
Median Rent
$380,900
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?
Mixed-use property - Restaurant, retail, and residential components create a flexible downtown commercial configuration.
Where is this mixed-use property located?
The property is located at 126 Monroe Ave Memphis, TN.
What is the asking price?
The asking price for this property is $875,000.
What are key features of this property?
This property features: 10,187 SF mixed‑use property across 126 Monroe Ave, 128 Monroe Ave, and 25 S Second Street; 3,000 SF second‑generation restaurant area with existing restaurant infrastructure; 1,000 SF street‑level retail storefront
