Conventional Restaurant
For Sale
$750,000
1297 Tunnel Road, Asheville, NC 28805
HB-zoned restaurant property with direct frontage on Tunnel Road and access to Interstate 240 and Interstate 40.
Property Size3,404 SF
Price / SF$220.33
Days on Market160
Property Features for 1297 Tunnel Road
General Information
Standard status
Active
Size
3,404 SF
Property subtype
Commercial
Zoning
HB
Property Condition
Severity
Major Repairs Needed
Evidence
significant flooding
Site & Location
Highway Access
Yes
Road Access
Yes
Building Details
Year Built
1985
Listing Agency:
Dewey Property Advisors
(828) 548-0090
Listed By:
Scott Raines · License ##226165
Source:
Techrealtyllc
Added: Mar 23
Changed: Aug 28
Last Checked: Aug 28 at 11:30AM
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 Dewey Property Advisors
Investment Insights
Based on property information with market context.
This conventional restaurant property at 1297 Tunnel Road includes an existing building constructed in 1985 and is designated HB zoning. The site has direct frontage along Tunnel Road and is positioned within Asheville’s primary retail trade area.
Interstate 240 and Interstate 40 provide regional connectivity, while Asheville Mall is nearby. The property is outside the flood zone, although significant flooding from Helene affected the site and interior work remains necessary.
Interstate 240 and Interstate 40 provide regional connectivity, while Asheville Mall is nearby. The property is outside the flood zone, although significant flooding from Helene affected the site and interior work remains necessary.
Key Highlights
- Existing restaurant property at 1297 Tunnel Road, Asheville, NC 28805
- HB zoning designation
- Direct frontage along Tunnel Road
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
$47,582
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
6.34%
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%
$951,640
$951.6K
Cap Rate 7%
$679,743
$679.7K
Cap Rate 9%
$528,689
$528.7K
Market Conditions
NOI Build-Up for 3,404 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
$64.5K $18.96/SF
− Vacancy
−$1.1K −$0.32/SF
EGI
$63.4K $18.64/SF
− OpEx
−$15.9K −$4.66/SF
NOI
$47.6K $13.98/SF
Area
Buncombe County, NC
Vacancy
1.70%
Lease Rate
$18.96 /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%
$951,640
Cap Rate 7%
$679,743
Cap Rate 9%
$528,689
Alternative Uses
Best Use
Specialty Retail
$679.7K
$594.8K – $793.0K
NOI $47,582 @ 7.0% cap · market cap 6.34%
Second Best
Retail
$570.2K
$498.9K – $665.2K
NOI $39,913 @ 7.0% cap · market cap 5.32%
Theoretical Best
Office A
$1.08M
$941.8K – $1.26M
NOI $75,347 @ 7.0% cap · market cap 10.05%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Highway access
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
170
Businesses Nearby
12k
Monthly Visits Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 47%
Dining 45%
Hotels & Casinos 8%
Arby's
Dining
4,094 visits/mo
0.2 miles
Family Dollar
Shops & Services
3,240 visits/mo
0.2 miles
Domino's Pizza
Dining
1,489 visits/mo
0.2 miles
Mobil
Shops & Services
1,429 visits/mo
0.2 miles
Truist
Shops & Services
1,154 visits/mo
0.2 miles
Demographics for 28805, NC
18,554
Population
10,737
Households
1.7
Avg Household Size
48
Median Age
49%
College-Educated
96%
High-School Grad
26.5 sq mi
ZIP Area
700
Density / Sq Mi
$67,104
Median Household Income
$35,897
Median Earnings
$1,198
Median Rent
$360,600
Median Home Value
Market
Vacancy Rate% for Retail in South region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Conventional restaurant - HB-zoned restaurant property with direct frontage on Tunnel Road and access to Interstate 240 and Interstate 40.
Where is this conventional restaurant located?
The property is located at 1297 Tunnel Road Asheville, NC.
What is the asking price?
The asking price for this property is $750,000.
What are key features of this property?
This property features: Existing restaurant property at 1297 Tunnel Road, Asheville, NC 28805; HB zoning designation; Direct frontage along Tunnel Road
