Stand-Alone Commercial Building
For Sale
Contact for pricing
2063 Castex St, Memphis, TN 38109
Value-add commercial property for sale or lease in developing area.
Property Size1,200 SF
Price / SF$124.17
Days on Market292
Property Features for 2063 Castex St
General Information
Standard status
Active
Size
1,200 SF
Class
C
Property subtype
Retail
Zoning
C
Investment Type
Owner/User
Building Details
Year Built
1970
Buildings
1
Stories
1
Tenancy
Single
Listing Agency:
Turn Key Realty Group
Listed By:
Izzy Obaid · License #375214
Source:
Crexi
Added: Oct 24, 2025
Changed: Aug 8
Last Checked: Aug 10 at 6:35AM
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 Turn Key Realty Group
Investment Insights
Based on property information with market context.
This stand-alone commercial building presents an investor opportunity with multiple strategies to capitalize on value through sale or lease options. Positioned in a developing area with long-term upside potential, this property is ideal for renovation, repositioning, lease-up, or redevelopment. It is suitable for investors pursuing cash-flow, equity growth, BRRR-style plays, or owner-user occupancy. The freestanding commercial structure offers full control with no shared walls, private parking, and driveway access. The solid brick exterior is ready for improvement, presenting an affordable entry point below replacement cost. Opportunities for build-out are available based on user or tenant needs. Investment advantages include its potential as a renovate-and-lease income asset, strong buy-and-hold potential, and suitability for owner-occupied businesses seeking low overhead. Redevelopment or adaptive reuse possibilities offer value-add and repositioning for future appreciation upside. Potential end-uses, subject to local zoning verification, include a retail storefront, professional or administrative office, salon/barber or studio-based services, creative, tech, or media workspace, storage, logistics, or operations office, and a nonprofit, training, or community center. The property size is 1200 square feet.
Key Highlights
- For sale or lease - flexible terms offer multiple investment strategies.
- Stand‑alone commercial structure - enjoy full control with no shared walls.
- Value‑add and repositioning potential - opportunity for future appreciation.
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
$11,592
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
7.78%
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%
$231,840
$231.8K
Cap Rate 7%
$165,600
$165.6K
Cap Rate 9%
$128,800
$128.8K
Market Conditions
NOI Build-Up for 1,200 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
$18.0K $15.00/SF
− Vacancy
−$1.4K −$1.20/SF
EGI
$16.6K $13.80/SF
− OpEx
−$5.0K −$4.14/SF
NOI
$11.6K $9.66/SF
Area
ZIP 38109
Vacancy
8.00%
Lease Rate
$15.00 /SF/Yr
Expense Ratio
30.00%
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%
$231,840
Cap Rate 7%
$165,600
Cap Rate 9%
$128,800
Alternative Uses
Best Use
Retail
$165.6K
$144.9K – $193.2K
NOI $11,592 @ 7.0% cap · market cap 7.78%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$294.4K
$257.6K – $343.5K
NOI $20,607 @ 7.0% cap · market cap 13.83%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
105
Businesses Nearby
488
Monthly Visits Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Home Improvements & Furnishings 100%
United Rentals
Home Improvements & Furnishings
488 visits/mo
0.3 miles
Demographics for 38109, TN
42,437
Population
18,881
Households
2.2
Avg Household Size
40
Median Age
14%
College-Educated
87%
High-School Grad
59.7 sq mi
ZIP Area
711
Density / Sq Mi
$36,934
Median Household Income
$30,780
Median Earnings
$1,000
Median Rent
$76,600
Median Home Value
Market
Vacancy Rate% for Retail in Memphis, TN
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Storefront property - Value-add commercial property for sale or lease in developing area.
Where is this storefront property located?
The property is located at 2063 Castex St Memphis, TN.
What is the asking price?
The asking price for this property is $149,000.
What are key features of this property?
This property features: For sale or lease - flexible terms offer multiple investment strategies.; Stand‑alone commercial structure - enjoy full control with no shared walls.; Value‑add and repositioning potential - opportunity for future appreciation.
