Single-Tenant NNN
For Sale
Contact for pricing
2000 Gallatin Pike N, Madison, TN 37115
Absolute NNN ground lease with renewal options and scheduled rent escalations supports long-term occupancy planning.
Property Size4,631 SF
Lot Size1.10 Acres
Price / SF$533.36
Days on Market55
Property Features for 2000 Gallatin Pike N
General Information
Standard status
Active
Size
4,631 SF
Lot size
1.10 Acres
Property subtype
Retail
Lease Type
Absolute Net
Investment Type
Net Lease
Net Operating Income
$110,000
Building Details
Year Built
2002
Buildings
1
Tenancy
Single
Listing Agency:
JLL - Dallas | Cedar Springs, Texas
Listed By:
Caroline Pinkston · License #601565
Source:
Crexi
Added: Jul 7
Changed: Aug 29
Last Checked: Aug 29 at 11:58PM
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 JLL - Dallas | Cedar Springs, Texas
Investment Insights
Based on property information with market context.
The property is a 4,631-square-foot single-tenant restaurant building completed in 2002 and occupied by Chick-fil-A. It sits on a 1.1-acre parcel at 2000 Gallatin Pike N in Madison, Tennessee.
The lease is structured as an absolute NNN ground lease with approximately 5.9 years remaining in the primary term. Contractual economics include 10.0% rent escalations every 5 years, six five-year renewal options, and a scheduled 10% increase in April 2027. The location is within the Nashville MSA, and the restaurant has operated at the property for 24 years.
The lease is structured as an absolute NNN ground lease with approximately 5.9 years remaining in the primary term. Contractual economics include 10.0% rent escalations every 5 years, six five-year renewal options, and a scheduled 10% increase in April 2027. The location is within the Nashville MSA, and the restaurant has operated at the property for 24 years.
Key Highlights
- Absolute NNN ground lease with approximately ±5.9 years remaining in the primary term
- 10.0% rent escalations every 5 years
- Six five‑year renewal options
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
$99,241
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
4.02%
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%
$1,984,820
$2.0M
Cap Rate 7%
$1,417,729
$1.4M
Cap Rate 9%
$1,102,678
$1.1M
Market Conditions
NOI Build-Up for 4,631 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
$137.3K $29.64/SF
− Vacancy
−$4.9K −$1.07/SF
EGI
$132.3K $28.57/SF
− OpEx
−$33.1K −$7.14/SF
NOI
$99.2K $21.43/SF
Area
Davidson County, TN
Vacancy
3.60%
Lease Rate
$29.64 /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%
$1,984,820
Cap Rate 7%
$1,417,729
Cap Rate 9%
$1,102,678
Alternative Uses
Best Use
Specialty Retail
$1.42M
$1.24M – $1.65M
NOI $99,241 @ 7.0% cap · market cap 4.02%
Second Best
—
—
no second resolved use
Theoretical Best
Warehouse
$5.61M
$4.91M – $6.54M
NOI $392,459 @ 7.0% cap · market cap 15.89%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,236
Businesses Nearby
553k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Dining 35%
Superstores 22%
Apparel 17%
Shops & Services 17%
Target
Superstores
81,526 visits/mo
0.2 miles
Chick-fil-A
Dining
49,470 visits/mo
0.1 miles
BJ's Wholesale Club
Superstores
37,651 visits/mo
0.3 miles
Dillard's
Apparel
30,535 visits/mo
0.1 miles
McDonald's
Dining
24,694 visits/mo
0.4 miles
Demographics for 37115, TN
39,821
Population
19,845
Households
2
Avg Household Size
37
Median Age
23%
College-Educated
82%
High-School Grad
21.5 sq mi
ZIP Area
1,852
Density / Sq Mi
$53,034
Median Household Income
$37,215
Median Earnings
$1,263
Median Rent
$271,100
Median Home Value
Market
Vacancy Rate% for Retail in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
NNN property - Absolute NNN ground lease with renewal options and scheduled rent escalations supports long-term occupancy planning.
Where is this nnn property located?
The property is located at 2000 Gallatin Pike N Madison, TN.
What is the asking price?
The asking price for this property is $2,470,000.
What are key features of this property?
This property features: Absolute NNN ground lease with approximately ±5.9 years remaining in the primary term; 10.0% rent escalations every 5 years; Six five‑year renewal options
