Restaurant Building with Highway
For Sale
$469,000
Pending
1938 Highway 45 Byp, Jackson, TN 38305
COMMERCIAL - Jackson, TN
Property Size2,261 SF
Days on Market1057
Property Features for 1938 Highway 45 Byp
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning description
Zoned Commercial / Land use Restaurant
Parking
27
Directions
From 45 Bypass, turn east onto Carriage House Drive - take first left onto Hwy 45 Bypass service road. Building is 2nd on right. From No. Highland Avenue - turn west onto Carriage House Drive. Follow it to Wiley Parker Road - turn right and continue to 1938 Bypass US 45 No.
Standard status
Pending
APN
055K C 008.01
Size
2,261 SF
Utilities
Heating system
Central, Natural Gas
Cooling system
Electric
Building Details
Floors in Building
1
Flooring type
Concrete, Vinyl
Building materials
Concrete, Steel Frame, Stone
Listing Agency:
Total Realty Source
(731) 574-9340
Listed By:
Lynda C Climer · License #54466
(731) 217-3827
Added: Oct 10, 2023
Changed: Aug 4
Last Checked: Aug 31 at 2:06AM
MLS# 234262
Copyright © 2026 Central West Tennessee Association of Realtors. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
Restaurant building with exposure to Highway 45 Bypass and Carriage House Drive, suitable for office, retail, or restaurant use. The building has been used for restaurants and is currently vacant.
The property is located at 1938 Highway 45 Byp in Jackson, TN 38305 (Madison County). Construction materials include concrete, steel frame, and stone. Interior flooring includes vinyl and concrete.
Comfort systems include natural gas heating with central heating and electric cooling. This is a straightforward option for a tenant or owner looking for an existing restaurant-oriented building on a highly visible roadway.
The property is located at 1938 Highway 45 Byp in Jackson, TN 38305 (Madison County). Construction materials include concrete, steel frame, and stone. Interior flooring includes vinyl and concrete.
Comfort systems include natural gas heating with central heating and electric cooling. This is a straightforward option for a tenant or owner looking for an existing restaurant-oriented building on a highly visible roadway.
Key Highlights
- Restaurant building with exposure to Highway 45 Bypass and Carriage House Drive
- Currently vacant; previously used for restaurants
- 2261 SF building size
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
$29,699
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
6.33%
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%
$593,980
$594.0K
Cap Rate 7%
$424,271
$424.3K
Cap Rate 9%
$329,989
$330.0K
Market Conditions
NOI Build-Up for 2,261 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
$40.7K $18.00/SF
− Vacancy
−$1.1K −$0.49/SF
EGI
$39.6K $17.51/SF
− OpEx
−$9.9K −$4.38/SF
NOI
$29.7K $13.14/SF
Area
Madison County, TN
Vacancy
2.70%
Lease Rate
$18.00 /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%
$593,980
Cap Rate 7%
$424,271
Cap Rate 9%
$329,989
Alternative Uses
Best Use
Specialty Retail
$424.3K
$371.2K – $495.0K
NOI $29,699 @ 7.0% cap · market cap 6.33%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$465.6K
$407.4K – $543.2K
NOI $32,591 @ 7.0% cap · market cap 6.95%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Highway access
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
893
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 38305, TN
52,686
Population
22,950
Households
2.3
Avg Household Size
40
Median Age
32%
College-Educated
94%
High-School Grad
128.0 sq mi
ZIP Area
412
Density / Sq Mi
$66,292
Median Household Income
$37,416
Median Earnings
$1,201
Median Rent
$221,200
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 - Restaurant building currently vacant, with exposure to Highway 45 Bypass and Carriage House Drive.
Where is this conventional restaurant located?
The property is located at 1938 Highway 45 Byp Jackson, TN.
What is the asking price?
The asking price for this property is $469,000.
What are key features of this property?
This property features: Restaurant building with exposure to Highway 45 Bypass and Carriage House Drive; Currently vacant; previously used for restaurants; 2261 SF building size
