Renovated Drive-Through
For Sale
$1,750,000
7065 WINCHESTER Rd, Memphis, TN 38125
Restaurant property with a furnished dining area, separate party room, patio, and central air.
Property Size6,018 SF
Lot Size0.83 Acres
Price / SF$290.79
Days on Market822
Property Features for 7065 WINCHESTER Rd
General Information
Standard status
Active
Size
6,018 SF
Lot size
0.83 Acres
Property subtype
General Commercial
Additional Details
Furnished
Yes
Highway Access
Yes
Patio
Yes
Amenities
Central Air
Concrete Driveway.
154.42 X 235.9 IRR
Outdoor Lights. Close To Shops, Strip Mall.
Building Details
Year Built
1998
Year Renovated
2016
Buildings
1
Listing Agency:
eXp Realty, LLC
(901) 674-1327
Listed By:
Yu Cai
Source:
Xome
Added: Jun 1, 2024
Changed: Aug 30
Last Checked: Aug 30 at 3:08PM
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 eXp Realty, LLC
Investment Insights
Based on property information with market context.
This restaurant property offers 6,018 square feet of building area on a 0.83-acre lot, along with a 500-square-foot patio. The interior includes a dining room, a separate furnished party room, and a fully equipped kitchen. Central air is provided, and the property includes a concrete driveway and outdoor lighting. Originally built in 1998, the building underwent renovation in 2016.
The property is located at 7065 WINCHESTER Rd in Memphis, Tennessee, near Highway 385 and Winchester Road. Highway 385 carries more than 100,000 vehicles daily, while Winchester Road reports traffic exceeding 30,000 vehicles per day. The site is also near shops and a strip mall, with access supported by a cross-access agreement.
The property is located at 7065 WINCHESTER Rd in Memphis, Tennessee, near Highway 385 and Winchester Road. Highway 385 carries more than 100,000 vehicles daily, while Winchester Road reports traffic exceeding 30,000 vehicles per day. The site is also near shops and a strip mall, with access supported by a cross-access agreement.
Key Highlights
- 6,018‑square‑foot restaurant building with a 500‑square‑foot patio
- 0.83‑acre lot with access supported by a cross‑access agreement
- Building constructed in 1998 and fully renovated in 2016
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
$80,593
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
4.61%
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%
$1,611,860
$1.6M
Cap Rate 7%
$1,151,329
$1.2M
Cap Rate 9%
$895,478
$895.5K
Market Conditions
NOI Build-Up for 6,018 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
$115.5K $19.20/SF
− Vacancy
−$8.1K −$1.34/SF
EGI
$107.5K $17.86/SF
− OpEx
−$26.9K −$4.46/SF
NOI
$80.6K $13.39/SF
Area
ZIP 38125
Vacancy
7.00%
Lease Rate
$19.20 /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%
$1,611,860
Cap Rate 7%
$1,151,329
Cap Rate 9%
$895,478
Alternative Uses
Best Use
Specialty Retail
$1.15M
$1.01M – $1.34M
NOI $80,593 @ 7.0% cap · market cap 4.61%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.60M
$1.40M – $1.86M
NOI $111,790 @ 7.0% cap · market cap 6.39%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
452
Businesses Nearby
299k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Dining 52%
Shops & Services 25%
Apparel 12%
Home Improvements & Furnishings 10%
Chick-fil-A
Dining
51,617 visits/mo
0.1 miles
The Home Depot
Home Improvements & Furnishings
29,901 visits/mo
0.5 miles
McDonald's
Dining
28,514 visits/mo
0.0 miles
Ross Dress for Less
Apparel
23,451 visits/mo
0.3 miles
Five Below
Shops & Services
22,983 visits/mo
0.3 miles
Demographics for 38125, TN
40,970
Population
16,435
Households
2.5
Avg Household Size
37
Median Age
37%
College-Educated
95%
High-School Grad
19.0 sq mi
ZIP Area
2,156
Density / Sq Mi
$83,184
Median Household Income
$45,793
Median Earnings
$1,440
Median Rent
$230,400
Median Home Value
Market
Vacancy Rate% for Retail in Memphis, TN
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Drive through restaurant - Restaurant property with a furnished dining area, separate party room, patio, and central air.
Where is this drive through restaurant located?
The property is located at 7065 WINCHESTER Rd Memphis, TN.
What is the asking price?
The asking price for this property is $1,750,000.
What are key features of this property?
This property features: 6,018‑square‑foot restaurant building with a 500‑square‑foot patio; 0.83‑acre lot with access supported by a cross‑access agreement; Building constructed in 1998 and fully renovated in 2016
