Established Harriman Restaurant Investment
For Sale
Contact for pricing
1839 S Roane St, Harriman, TN 37748
Long-term leased Cracker Barrel with corporate guarantee and rental increases.
Property Size8,588 SF
Price / SF$255.12
Days on Market156
Property Features for 1839 S Roane St
General Information
Standard status
Active
Size
8,588 SF
Property subtype
Retail
Lease Type
Absolute Net
Investment Type
Net Lease
Net Operating Income
$127,836
Building Details
Year Built
1998
Tenancy
Single
Listing Agency:
Marcus & Millichap
(813) 387-4700
Listed By:
Reid Thedford · License #FL SL3442474
Source:
Crexi
Added: Mar 9
Changed: Aug 8
Last Checked: Aug 8 at 6:37AM
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
Investment Insights
Based on property information with market context.
This commercial property features a restaurant with a history of operational success, as Cracker Barrel has been operating at this site for over 27 years, since 1998. The tenant recently exercised a 10-year option in 2023, demonstrating a continued commitment to the location. The ground lease is NNN, meaning there are no landlord responsibilities. The lease includes a 13.75% rental increase on 9/1/2028. The current rent is below concept rent, at $127,836 annually, with over 7 years remaining on the base term. The location is a strong performing store, ranking in the top 82nd percentile nationally and top 72nd in the state of Tennessee according to Placer.ai. The tenant is corporately guaranteed with an S&P Credit Rating of BB-. Cracker Barrel has over 660 company-owned restaurants across 43 states, maintaining full operational control and consistent brand standards. In fiscal 2025, total revenues approached $3.48 billion, with adjusted EBITDA up approximately 9% year-over-year, highlighting resilience in core dining and retail operations. Comparable restaurant sales grew by 5.4%, supported by strategic pricing and menu mix, underscoring strong brand relevance. The property size is 8,588 square feet.
Key Highlights
- Corporately Guaranteed by Cracker Barrel (S&P Credit Rating: BB-)
- Long‑term Ground Lease with 7+ Years Remaining on Base Term
- Strong Performing Store: Placer.AI ranks in top 82nd percentile nationally
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
$143,937
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
6.57%
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%
$2,878,740
$2.9M
Cap Rate 7%
$2,056,243
$2.1M
Cap Rate 9%
$1,599,300
$1.6M
Market Conditions
NOI Build-Up for 8,588 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
$201.0K $23.40/SF
− Vacancy
−$9.0K −$1.05/SF
EGI
$191.9K $22.35/SF
− OpEx
−$48.0K −$5.59/SF
NOI
$143.9K $16.76/SF
Area
Roane County, TN
Vacancy
4.50%
Lease Rate
$23.40 /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%
$2,878,740
Cap Rate 7%
$2,056,243
Cap Rate 9%
$1,599,300
Alternative Uses
Best Use
Specialty Retail
$2.06M
$1.80M – $2.40M
NOI $143,937 @ 7.0% cap · market cap 6.57%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$2.13M
$1.86M – $2.48M
NOI $148,895 @ 7.0% cap · market cap 6.80%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
151
Businesses Nearby
42k
Monthly Visits Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 64%
Groceries 28%
Dining 6%
Home Improvements & Furnishings 3%
Dollar General Market
Groceries
11,672 visits/mo
0.2 miles
Dollar Tree
Shops & Services
10,738 visits/mo
0.5 miles
Exxon
Shops & Services
6,485 visits/mo
0.5 miles
Citgo
Shops & Services
4,808 visits/mo
0.3 miles
AutoZone
Shops & Services
3,123 visits/mo
0.2 miles
Demographics for 37748, TN
17,227
Population
8,208
Households
2.1
Avg Household Size
45
Median Age
20%
College-Educated
87%
High-School Grad
106.6 sq mi
ZIP Area
162
Density / Sq Mi
$58,649
Median Household Income
$40,155
Median Earnings
$760
Median Rent
$173,600
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 - Long-term leased Cracker Barrel with corporate guarantee and rental increases.
Where is this conventional restaurant located?
The property is located at 1839 S Roane St Harriman, TN.
What is the asking price?
The asking price for this property is $2,191,000.
What are key features of this property?
This property features: Corporately Guaranteed by Cracker Barrel (S&P Credit Rating: BB-); Long‑term Ground Lease with 7+ Years Remaining on Base Term; Strong Performing Store: Placer.AI ranks in top 82nd percentile nationally
