Automotive Service Facility with 10-Year
For Sale
Contact for pricing
1554 Donelson Pkwy, Dover, TN 37058
Brand-new 10-year lease commenced July 2025 with corporate guarantee at a 2020-built automotive service facility.
Property Size10,800 SF
Price / SF$218.52
Days on Market160
Property Features for 1554 Donelson Pkwy
General Information
Standard status
Active
Size
10,800 SF
Property subtype
Retail
Occupancy
100%
Lease Type
NN
Net Operating Income
$180,000
Building Details
Year Built
2020
Tenancy
Single
Listing Agency:
Marcus & Millichap - Houston
Listed By:
Justin Miller · License #TX 0551204
(713) 452-4200
Source:
Crexi
Added: Mar 30
Changed: Aug 21
Last Checked: Sep 1 at 11:56PM
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 Marcus & Millichap - Houston
Investment Insights
Based on property information with market context.
This purpose-built automotive service facility was constructed in 2020 and is currently operating under a brand-new 10-year lease that commenced in July 2025. The lease is described as corporate guarantee-backed and structured on a double net basis, with minimal landlord responsibility. The offering also notes built-in rent growth of 8% increases every five years through four renewal options, extending the lease term to 2055.
The property is positioned along the primary corridor between Clarksville and Land Between the Lakes, targeting a captive market. The public remarks describe the surrounding submarket as a high-growth area, including 24% population growth over the last decade and household incomes nearly doubling since 2000.
The facility is listed for sale with a total property size of 10,800 square feet.
The property is positioned along the primary corridor between Clarksville and Land Between the Lakes, targeting a captive market. The public remarks describe the surrounding submarket as a high-growth area, including 24% population growth over the last decade and household incomes nearly doubling since 2000.
The facility is listed for sale with a total property size of 10,800 square feet.
Key Highlights
- Brand‑new 10‑year lease commenced July 2025 with corporate guarantee from Sun Auto Tire & Service
- 2020 construction: modern, purpose‑built automotive service facility to help minimize near‑term capital expenditures and deferred maintenance risk
- Lease structure is double net (NN) with minimal landlord responsibility
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
$102,768
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
4.35%
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%
$2,055,360
$2.1M
Cap Rate 7%
$1,468,114
$1.5M
Cap Rate 9%
$1,141,867
$1.1M
Market Conditions
NOI Build-Up for 10,800 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
$155.5K $14.40/SF
− Vacancy
−$8.7K −$0.81/SF
EGI
$146.8K $13.59/SF
− OpEx
−$44.0K −$4.08/SF
NOI
$102.8K $9.52/SF
Area
Stewart County, TN
Vacancy
5.60%
Lease Rate
$14.40 /SF/Yr
Expense Ratio
30.00%
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%
$2,055,360
Cap Rate 7%
$1,468,114
Cap Rate 9%
$1,141,867
Alternative Uses
Best Use
Retail
$1.47M
$1.28M – $1.71M
NOI $102,768 @ 7.0% cap · market cap 4.35%
Second Best
Industrial
$905.9K
$792.7K – $1.06M
NOI $63,413 @ 7.0% cap · market cap 2.69%
Theoretical Best
Office A
$1.81M
$1.59M – $2.12M
NOI $126,904 @ 7.0% cap · market cap 5.38%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
56
Businesses Nearby
42k
Monthly Visits Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Dining 40%
Shops & Services 33%
Groceries 27%
McDonald's
Dining
16,771 visits/mo
0.4 miles
Piggly Wiggly
Groceries
11,255 visits/mo
0.3 miles
Exxon
Shops & Services
8,309 visits/mo
0.5 miles
Dollar Tree
Shops & Services
5,478 visits/mo
0.2 miles
Demographics for 37058, TN
7,396
Population
3,840
Households
1.9
Avg Household Size
46
Median Age
18%
College-Educated
91%
High-School Grad
184.0 sq mi
ZIP Area
40
Density / Sq Mi
$59,896
Median Household Income
$34,855
Median Earnings
$744
Median Rent
$197,300
Median Home Value
Market
Vacancy Rate% for Retail in South region
Questions? Ask Rey
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Similar Off Market Nearby
- Dover Small Engine — 1362 Donelson Pkwy, Dover, TN 37058
Frequently Asked Questions
What type of property is this?
Auto shop - Brand-new 10-year lease commenced July 2025 with corporate guarantee at a 2020-built automotive service facility.
Where is this auto shop located?
The property is located at 1554 Donelson Pkwy Dover, TN.
What is the asking price?
The asking price for this property is $2,360,000.
What are key features of this property?
This property features: Brand‑new 10‑year lease commenced July 2025 with corporate guarantee from Sun Auto Tire & Service; 2020 construction: modern, purpose‑built automotive service facility to help minimize near‑term capital expenditures and deferred maintenance risk; Lease structure is double net (NN) with minimal landlord responsibility
