Renovated Restaurant
For Sale
Contact for pricing
14 Folly Field Road, Hilton Head Island, SC 29928
Currently configured for restaurant service with a fully equipped kitchen and furnishings in place.
Property Size5,978 SF
Price / SF$501.84
Days on Market189
Property Features for 14 Folly Field Road
General Information
Standard status
Active
Size
5,978 SF
Property subtype
Retail
Occupancy
100%
Lease Type
NNN
Investment Type
Owner/User
Site & Location
Traffic Count
45,000 vehicles/day
Highway Access
Yes
Restaurant
Seating Capacity
250
Equipment Included
Yes
Additional Details
Furnished
Yes
Building Details
Year Built
2008
Year Renovated
2020
Buildings
1
Stories
1
Tenancy
Single
Listing Agency:
Kay Real Estate Group, LLC
Listed By:
Travis R. Kay · License #SC 66773
Source:
Crexi
Added: Feb 21
Changed: Aug 29
Last Checked: Aug 29 at 5:16PM
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 Kay Real Estate Group, LLC
Investment Insights
Based on property information with market context.
This 5,978-square-foot restaurant property was built in 2008 and renovated in 2022. The building accommodates 250 guests and is currently operating as a restaurant, with a fully equipped kitchen plus furniture, fixtures, and equipment included in the real estate offering. Renovation work involved David Thompson Architects and Tom Lennon Construction.
The property is located at 14 Folly Field Road on Hilton Head Island, at a signalized intersection with Hwy 278. Reported traffic volume at the intersection is 45,000 VPD. The existing configuration provides a ready restaurant setting for continued operations or repositioning within the same use.
The property is located at 14 Folly Field Road on Hilton Head Island, at a signalized intersection with Hwy 278. Reported traffic volume at the intersection is 45,000 VPD. The existing configuration provides a ready restaurant setting for continued operations or repositioning within the same use.
Key Highlights
- 5,978 SF restaurant building on Hilton Head Island
- Renovated in 2022 with work by David Thompson Architects and Tom Lennon Construction
- Seating capacity for 250 guests
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
$103,730
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
3.46%
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%
$2,074,600
$2.1M
Cap Rate 7%
$1,481,857
$1.5M
Cap Rate 9%
$1,152,556
$1.2M
Market Conditions
NOI Build-Up for 5,978 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
$143.5K $24.00/SF
− Vacancy
−$5.2K −$0.86/SF
EGI
$138.3K $23.14/SF
− OpEx
−$34.6K −$5.78/SF
NOI
$103.7K $17.35/SF
Area
Beaufort County, SC
Vacancy
3.60%
Lease Rate
$24.00 /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%
$2,074,600
Cap Rate 7%
$1,481,857
Cap Rate 9%
$1,152,556
Alternative Uses
Best Use
Specialty Retail
$1.48M
$1.30M – $1.73M
NOI $103,730 @ 7.0% cap · market cap 3.46%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.80M
$1.58M – $2.10M
NOI $126,255 @ 7.0% cap · market cap 4.21%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
45,000 VPD
Traffic count
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
331
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 29928, SC
15,538
Population
19,204
Households
0.8
Avg Household Size
63
Median Age
63%
College-Educated
98%
High-School Grad
20.7 sq mi
ZIP Area
751
Density / Sq Mi
$97,979
Median Household Income
$46,798
Median Earnings
$1,806
Median Rent
$776,600
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 - Currently configured for restaurant service with a fully equipped kitchen and furnishings in place.
Where is this conventional restaurant located?
The property is located at 14 Folly Field Road Hilton Head Island, SC.
What is the asking price?
The asking price for this property is $3,000,000.
What are key features of this property?
This property features: 5,978 SF restaurant building on Hilton Head Island; Renovated in 2022 with work by David Thompson Architects and Tom Lennon Construction; Seating capacity for 250 guests
