Retail Building with Drive-Through
For Sale
$389,000
1935 Gillespie Street, Fayetteville, NC 28306
Two drive-through windows, ample parking, and exterior lighting support retail and service uses in this updated building.
Property Size2,806 SF
Price / SF$138.63
Days on Market181
Property Features for 1935 Gillespie Street
General Information
Standard status
Active
Size
2,806 SF
Property subtype
Retail
Additional Details
Highway Access
Yes
Amenities
Electric
3
Building Details
Year Built
1972
Stories
2
Listing Agency:
FRANKLIN JOHNSON COMMERCIAL REAL ESTATE
(910) 322-6535
Listed By:
MALINDA CRAVEN · License #196331
(910) 322-6535
Source:
Xome
Added: Feb 12
Changed: Aug 8
Last Checked: Aug 12 at 4:04AM
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 FRANKLIN JOHNSON COMMERCIAL REAL ESTATE
Investment Insights
Based on property information with market context.
This updated retail building includes two drive-through windows, plenty of parking, and exterior area lights. The seller notes the former cooler’s compressor has been removed, but it could be added again. Improvements reported include a new metal roof, new electric heat pump, new flooring, and new electric work.
The layout also features an upstairs level with entrances from the inside and a private exterior entrance. Upstairs could be configured as an apartment (noting no shower) or office space, and includes two offices (or bedrooms), washer and dryer hookups, a half bath, and a partially finished kitchen area with a sink.
The property is positioned near the intersection of South Eastern Blvd, Gillespie St., and I-95 Business, and is described as suitable for a range of retail and service businesses, including a mini mart where alcohol sales are allowed in this district, as well as certain office uses.
The layout also features an upstairs level with entrances from the inside and a private exterior entrance. Upstairs could be configured as an apartment (noting no shower) or office space, and includes two offices (or bedrooms), washer and dryer hookups, a half bath, and a partially finished kitchen area with a sink.
The property is positioned near the intersection of South Eastern Blvd, Gillespie St., and I-95 Business, and is described as suitable for a range of retail and service businesses, including a mini mart where alcohol sales are allowed in this district, as well as certain office uses.
Key Highlights
- Updated commercial building built in 1972 with new metal roof, new electric heat pump, new flooring, and new electric work
- Two drive‑through windows plus ample parking and exterior area lights
- CC - community commercial zoning allows office and most retail/service businesses; alcohol sales allowed in this district
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
$34,303
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
8.82%
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%
$686,060
$686.1K
Cap Rate 7%
$490,043
$490.0K
Cap Rate 9%
$381,144
$381.1K
Market Conditions
NOI Build-Up for 2,806 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
$57.2K $20.40/SF
− Vacancy
−$11.5K −$4.10/SF
EGI
$45.7K $16.30/SF
− OpEx
−$11.4K −$4.07/SF
NOI
$34.3K $12.22/SF
Area
Fayetteville, NC
Vacancy
20.10%
Lease Rate
$20.40 /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%
$686,060
Cap Rate 7%
$490,043
Cap Rate 9%
$381,144
Alternative Uses
Best Use
Office B
$490.0K
$428.8K – $571.7K
NOI $34,303 @ 7.0% cap · market cap 8.82%
Second Best
Retail
$453.1K
$396.4K – $528.6K
NOI $31,714 @ 7.0% cap · market cap 8.15%
Theoretical Best
Office A
$614.9K
$538.1K – $717.4K
NOI $43,046 @ 7.0% cap · market cap 11.07%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
91
Businesses Nearby
Explore this area
Business Placement
Demographics for 28306, NC
44,615
Population
17,723
Households
2.5
Avg Household Size
36
Median Age
28%
College-Educated
90%
High-School Grad
69.7 sq mi
ZIP Area
640
Density / Sq Mi
$63,175
Median Household Income
$40,258
Median Earnings
$1,115
Median Rent
$218,900
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?
Retail space - Two drive-through windows, ample parking, and exterior lighting support retail and service uses in this updated building.
Where is this retail space located?
The property is located at 1935 Gillespie Street Fayetteville, NC.
What is the asking price?
The asking price for this property is $389,000.
What are key features of this property?
This property features: Updated commercial building built in 1972 with new metal roof, new electric heat pump, new flooring, and new electric work; Two drive‑through windows plus ample parking and exterior area lights; CC - community commercial zoning allows office and most retail/service businesses; alcohol sales allowed in this district
