Turnkey Salon Suite Office
For Sale
Contact for pricing
238 S Allen Rd, Wake Forest, NC 27587
Two-story building configured with up to 15 salon suites, including a full kitchen, four restrooms, and onsite parking.
Property Size3,900 SF
Price / SF$307.69
Days on Market160
Property Features for 238 S Allen Rd
General Information
Standard status
Active
Size
3,900 SF
Total Parking Spaces
12
Property subtype
Office, Retail
Zoning
NMX
Additional Details
Highway Access
Yes
Amenities
full kitchen
restrooms
storage
laundry facilities
ADA accessibility
Building Details
Year Built
1985
Year Renovated
2014
Buildings
1
Stories
2
Units
15
Tenancy
Multi
Listing Agency:
KW Commercial Raleigh
Listed By:
Diego Munoz · License #NC 273250
(919) 675-2750
Source:
Crexi
Added: Mar 30
Changed: Aug 26
Last Checked: Aug 31 at 11:17AM
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 KW Commercial Raleigh
Investment Insights
Based on property information with market context.
238 South Allen Street is a meticulously maintained two-story building designed for high-capacity service operations, with up to 15 ready-made salon suites for immediate occupancy. The interior includes a full kitchen, four restrooms, and dedicated storage and laundry facilities to support day-to-day workflow.
The property is positioned just blocks from Historic Downtown Wake Forest, with connectivity to the NC-98 corridor and US-1 nearby. It also features 12 onsite parking spots and ADA accessibility via integrated ramps.
Offered as a turnkey setup within flexible NMX (Neighborhood Mixed-Use) zoning, the property is set up to accommodate service-focused tenants while maintaining convenient client access and practical onsite amenities.
The property is positioned just blocks from Historic Downtown Wake Forest, with connectivity to the NC-98 corridor and US-1 nearby. It also features 12 onsite parking spots and ADA accessibility via integrated ramps.
Offered as a turnkey setup within flexible NMX (Neighborhood Mixed-Use) zoning, the property is set up to accommodate service-focused tenants while maintaining convenient client access and practical onsite amenities.
Key Highlights
- 1985 two‑story building configured with up to 15 ready‑made salon suites for immediate occupancy
- Interior features include a full kitchen, four restrooms, dedicated storage, and laundry facilities
- 12 onsite parking spots and ADA accessibility via integrated ramps
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
$69,199
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
5.77%
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%
$1,383,980
$1.4M
Cap Rate 7%
$988,557
$988.6K
Cap Rate 9%
$768,878
$768.9K
Market Conditions
NOI Build-Up for 3,900 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
$105.3K $27.00/SF
− Vacancy
−$6.4K −$1.65/SF
EGI
$98.9K $25.35/SF
− OpEx
−$29.7K −$7.60/SF
NOI
$69.2K $17.74/SF
Area
Wake County, NC
Vacancy
6.12%
Lease Rate
$27.00 /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%
$1,383,980
Cap Rate 7%
$988,557
Cap Rate 9%
$768,878
Alternative Uses
Best Use
Retail
$988.6K
$865.0K – $1.15M
NOI $69,199 @ 7.0% cap · market cap 5.77%
Second Best
Office B
$855.2K
$748.3K – $997.8K
NOI $59,867 @ 7.0% cap · market cap 4.99%
Theoretical Best
Specialty Retail
$1.11M
$974.4K – $1.30M
NOI $77,948 @ 7.0% cap · market cap 6.50%
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
817
Businesses Nearby
Explore this area
Business Placement
Demographics for 27587, NC
76,647
Population
30,571
Households
2.5
Avg Household Size
40
Median Age
56%
College-Educated
96%
High-School Grad
105.1 sq mi
ZIP Area
729
Density / Sq Mi
$125,607
Median Household Income
$59,006
Median Earnings
$1,415
Median Rent
$452,400
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?
Office units - Two-story building configured with up to 15 salon suites, including a full kitchen, four restrooms, and onsite parking.
Where is this office units located?
The property is located at 238 S Allen Rd Wake Forest, NC.
What is the asking price?
The asking price for this property is $1,200,000.
What are key features of this property?
This property features: 1985 two‑story building configured with up to 15 ready‑made salon suites for immediate occupancy; Interior features include a full kitchen, four restrooms, dedicated storage, and laundry facilities; 12 onsite parking spots and ADA accessibility via integrated ramps
