Pediatric Medical
For Sale
Contact for pricing
2860 COVINGTON PIKE, Memphis, TN 38128
Established pediatric practice serving Memphis-area children and adolescents from a medical center built in 1997.
Property Size19,550 SF
Price / SF$182.81
Days on Market12
Property Features for 2860 COVINGTON PIKE
General Information
Standard status
Active
Size
19,550 SF
Property subtype
Office
Occupancy
100%
Net Operating Income
$250,170
Additional Details
Business Included
Yes
Building Details
Year Built
1997
Buildings
1
Stories
1
Tenancy
Single
Listing Agency:
Marcus & Millichap - Nashville
Listed By:
Jason Hernandez · License #CA 01392646
Source:
Crexi
Added: Jul 31
Changed: Aug 9
Last Checked: Aug 10 at 12:26PM
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 Marcus & Millichap - Nashville
Investment Insights
Based on property information with market context.
The subject property is associated with Raleigh Group, a pediatric medical provider serving the greater Memphis area. The practice delivers pediatric and adolescent care and is recognized as both a Patient-Centered Medical Home and an NCQA-recognized practice. Raleigh Group was founded in 1977 and operates two pediatric medical locations, including the subject property and a second location in Eads, Tennessee.
Located at 2860 Covington Pike in Memphis, Tennessee, the property sits within the Raleigh suburb of Memphis. The organization’s Memphis MSA footprint is concentrated in demographic corridors identified in the source information as supporting consistent patient volume and long-term pediatric care.
Located at 2860 Covington Pike in Memphis, Tennessee, the property sits within the Raleigh suburb of Memphis. The organization’s Memphis MSA footprint is concentrated in demographic corridors identified in the source information as supporting consistent patient volume and long-term pediatric care.
Key Highlights
- Pediatric and adolescent medical care provider
- Patient‑Centered Medical Home designation
- NCQA‑recognized practice
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
$273,426
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
7.65%
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%
$5,468,520
$5.5M
Cap Rate 7%
$3,906,086
$3.9M
Cap Rate 9%
$3,038,067
$3.0M
Market Conditions
NOI Build-Up for 19,550 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
$434.0K $22.20/SF
− Vacancy
−$69.4K −$3.55/SF
EGI
$364.6K $18.65/SF
− OpEx
−$91.1K −$4.66/SF
NOI
$273.4K $13.99/SF
Area
ZIP 38128
Vacancy
16.00%
Lease Rate
$22.20 /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%
$5,468,520
Cap Rate 7%
$3,906,086
Cap Rate 9%
$3,038,067
Alternative Uses
Best Use
Office B
$3.91M
$3.42M – $4.56M
NOI $273,426 @ 7.0% cap · market cap 7.65%
Second Best
Healthcare Medical
$3.33M
$2.91M – $3.88M
NOI $233,099 @ 7.0% cap · market cap 6.52%
Theoretical Best
Office A
$5.19M
$4.54M – $6.05M
NOI $363,161 @ 7.0% cap · market cap 10.16%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Turnkey business
Opportunity
Location Intelligence
Trade Area within ½ mile
417
Businesses Nearby
Explore this area
Business Placement
Demographics for 38128, TN
43,197
Population
18,388
Households
2.3
Avg Household Size
32
Median Age
15%
College-Educated
85%
High-School Grad
23.6 sq mi
ZIP Area
1,830
Density / Sq Mi
$43,166
Median Household Income
$32,429
Median Earnings
$1,150
Median Rent
$123,900
Median Home Value
Market
Vacancy Rate% for Office 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?
Medical center - Established pediatric practice serving Memphis-area children and adolescents from a medical center built in 1997.
Where is this medical center located?
The property is located at 2860 COVINGTON PIKE Memphis, TN.
What is the asking price?
The asking price for this property is $3,573,863.
What are key features of this property?
This property features: Pediatric and adolescent medical care provider; Patient‑Centered Medical Home designation; NCQA‑recognized practice
