Underground Bomb Shelter
For Sale
$1,350,000
8871 Griffith Rd, Nashville, TN 37221
Substantially subterranean facility with reinforced concrete construction and adaptive-reuse potential.
Property Size8,500 SF
Price / SF$158.82
Days on Market1500
Property Features for 8871 Griffith Rd
General Information
Standard status
Active
Size
8,500 SF
Property subtype
Commercial/Industrial
Building Details
Year Built
1952
Construction
concrete
Listing Agency:
Sims Commercial Real Estate Inc
(615) 425-3600
Listed By:
Michael Sims · License #339037
(615) 961-4040
Source:
Exitrealty
Added: Jul 27, 2022
Changed: Sep 2
Last Checked: Aug 30 at 8:33PM
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 Sims Commercial Real Estate Inc
Investment Insights
Based on property information with market context.
This warehouse property includes an 8,500-square-foot structure built in 1952, with most of the facility positioned below grade. The underground section is larger than the above-ground portion reflected in the tax record. Construction includes 2-foot-thick concrete walls, providing the defining physical character of this former bomb shelter facility.
The property may support several adaptive-reuse concepts identified for the site, including secure storage, wine warehousing, recording studio space, or a tourist attraction. Its configuration offers a distinctive basis for evaluating specialized warehouse and alternative commercial applications.
The property may support several adaptive-reuse concepts identified for the site, including secure storage, wine warehousing, recording studio space, or a tourist attraction. Its configuration offers a distinctive basis for evaluating specialized warehouse and alternative commercial applications.
Key Highlights
- 8,500‑square‑foot warehouse property built in 1952
- Majority of the facility is underground
- Underground portion is larger than the above‑ground tax‑record area
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
$66,474
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
4.92%
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%
$1,329,480
$1.3M
Cap Rate 7%
$949,629
$949.6K
Cap Rate 9%
$738,600
$738.6K
Market Conditions
NOI Build-Up for 8,500 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
$81.3K $9.57/SF
− Vacancy
−$3.1K −$0.37/SF
EGI
$78.2K $9.20/SF
− OpEx
−$11.7K −$1.38/SF
NOI
$66.5K $7.82/SF
Area
ZIP 37221
Vacancy
3.86%
Lease Rate
$9.57 /SF/Yr
Expense Ratio
15.00%
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%
$1,329,480
Cap Rate 7%
$949,629
Cap Rate 9%
$738,600
Alternative Uses
Best Use
Warehouse
$949.6K
$830.9K – $1.11M
NOI $66,474 @ 7.0% cap · market cap 4.92%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$2.86M
$2.50M – $3.33M
NOI $199,920 @ 7.0% cap · market cap 14.81%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
3
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 37221, TN
42,312
Population
20,323
Households
2.1
Avg Household Size
39
Median Age
62%
College-Educated
97%
High-School Grad
49.3 sq mi
ZIP Area
858
Density / Sq Mi
$99,083
Median Household Income
$58,191
Median Earnings
$1,778
Median Rent
$432,900
Median Home Value
Market
Vacancy Rate% for Industrial in Nashville, TN
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Warehouse - Substantially subterranean facility with reinforced concrete construction and adaptive-reuse potential.
Where is this warehouse located?
The property is located at 8871 Griffith Rd Nashville, TN.
What is the asking price?
The asking price for this property is $1,350,000.
What are key features of this property?
This property features: 8,500‑square‑foot warehouse property built in 1952; Majority of the facility is underground; Underground portion is larger than the above‑ground tax‑record area
