Three-Story Office
For Sale
$2,300,000
Pending
1600 Franklin Street, Chapel Hill, NC 27514
Three-story office building with leased first and second floors and a third-floor suite available for lease.
Property Size12,800 SF
Lot Size1.00 Acre
Days on Market253
Property Features for 1600 Franklin Street
General Information
Standard status
Pending
Size
12,800 SF
Lot size
1.00 Acre
Property subtype
Office
Taxes and HOA fees
Annual Taxes
$30,355
Amenities
elevator
free bus line
3
R-5
Per Plat
City Road.
Building Details
Year Built
1985
Listing Agency:
(919) 923-3295
Listed By:
Triangle Real Estate Services
(919) 923-3295
Source:
Xome
Added: Dec 10, 2025
Changed: Aug 12
Last Checked: Aug 20 at 4:56AM
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 Triangle Real Estate Services
Investment Insights
Based on property information with market context.
This three-story office building sits on a one-acre corner lot and includes leased space on the first and second floors through 2029. The third floor, totaling 4,975 square feet, is available for lease. The building features abundant glass for natural light and views, with convenient lobby access to the upper levels via stairs or elevator.
Located on East Franklin Street in Chapel Hill, the property is described as convenient to Whole Foods, Staples, Trader Joe’s, and other nearby retail options. The public remarks also note access from a bus line that is free.
The building offers a straightforward vertical office layout with both stair and elevator service from the lobby, supporting day-to-day tenant operations across multiple floors.
Located on East Franklin Street in Chapel Hill, the property is described as convenient to Whole Foods, Staples, Trader Joe’s, and other nearby retail options. The public remarks also note access from a bus line that is free.
The building offers a straightforward vertical office layout with both stair and elevator service from the lobby, supporting day-to-day tenant operations across multiple floors.
Key Highlights
- Three‑story office building (1985) on a 1‑acre corner lot with city road frontage
- First and second floors are leased to Coldwell Banker HPW through 2029
- Third floor is 4,975 SF and available for lease at $21.50/SF
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
$197,683
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
8.59%
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%
$3,953,660
$4.0M
Cap Rate 7%
$2,824,043
$2.8M
Cap Rate 9%
$2,196,478
$2.2M
Market Conditions
NOI Build-Up for 12,800 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
$319.5K $24.96/SF
− Vacancy
−$55.9K −$4.37/SF
EGI
$263.6K $20.59/SF
− OpEx
−$65.9K −$5.15/SF
NOI
$197.7K $15.44/SF
Area
Orange County, NC
Vacancy
17.50%
Lease Rate
$24.96 /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%
$3,953,660
Cap Rate 7%
$2,824,043
Cap Rate 9%
$2,196,478
Alternative Uses
Best Use
Office B
$2.82M
$2.47M – $3.29M
NOI $197,683 @ 7.0% cap · market cap 8.59%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$4.13M
$3.62M – $4.82M
NOI $289,328 @ 7.0% cap · market cap 12.58%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,600
Businesses Nearby
Explore this area
Business Placement
Demographics for 27514, NC
33,809
Population
11,470
Households
2.9
Avg Household Size
27
Median Age
80%
College-Educated
98%
High-School Grad
19.6 sq mi
ZIP Area
1,725
Density / Sq Mi
$94,167
Median Household Income
$25,145
Median Earnings
$1,491
Median Rent
$628,700
Median Home Value
Market
Vacancy Rate% for Office in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Office building - Three-story office building with leased first and second floors and a third-floor suite available for lease.
Where is this office building located?
The property is located at 1600 Franklin Street Chapel Hill, NC.
What is the asking price?
The asking price for this property is $2,300,000.
What are key features of this property?
This property features: Three‑story office building (1985) on a 1‑acre corner lot with city road frontage; First and second floors are leased to Coldwell Banker HPW through 2029; Third floor is 4,975 SF and available for lease at $21.50/SF
