Restaurant Opportunity Near Amazon
For Sale
$1,300,000
2904 Knoxville Center Dr, Knoxville, TN 37924
Former restaurant location near Amazon fulfillment center and I-640.
Property Size3,094 SF
Days on Market171
Property Features for 2904 Knoxville Center Dr
General Information
Standard status
Active
Size
3,094 SF
Class
C
Property subtype
Retail
Building Details
Building Size
3,094 SF
Year Built
1994
Listing Agency:
SVN I Wood Properties
(513) 315-7694
Listed By:
Elizabeth Houser · License #377171
(513) 315-7694
Source:
Svnwood
Added: Mar 6
Changed: Aug 19
Last Checked: Aug 24 at 3:25AM
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 SVN I Wood Properties
Investment Insights
Based on property information with market context.
This property, formerly a Don Chuy's restaurant, presents an excellent restaurant opportunity due to its location across from the new Amazon fulfillment center. The high volume of employees at the Amazon center provides a built-in customer base for both lunch and dinner service. Situated in a prime location in the Upper East side of Knoxville, the restaurant benefits from its proximity to downtown Knoxville. The area experiences high traffic counts, with 79,941 on I-640 and 18,428 on Millertown Pike. The property's location offers easy access to I-640. The surrounding area has a population of 39,375 and an average household income of $80,464, presenting a promising market for businesses. The property is located in a busy retail area serving the Knoxville metro, easily accessible from Millertown Pike and North Mall Road, right off I-640. The area is experiencing growth, with Knoxville being named one of the "Top 10 Fastest Growing Cities in the U.S." In 2021, over 30 companies invested over $1.368 billion and created over 4,200 jobs in the Greater Knoxville Area. The area has a population of 12,700 and a median household income of $61,900.
Key Highlights
- Located directly across from the new Amazon fulfillment center, providing a large, built‑in customer base.
- Prime location in the Upper East side of Knoxville with high traffic counts (79,941 on I‑640 and 18,428 on Millertown Pike).
- Easy access to I‑640, convenient for both customers and employees.
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
$51,856
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
3.99%
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%
$1,037,120
$1.0M
Cap Rate 7%
$740,800
$740.8K
Cap Rate 9%
$576,178
$576.2K
Market Conditions
NOI Build-Up for 3,094 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
$72.4K $23.40/SF
− Vacancy
−$3.3K −$1.05/SF
EGI
$69.1K $22.35/SF
− OpEx
−$17.3K −$5.59/SF
NOI
$51.9K $16.76/SF
Area
Knoxville, TN
Vacancy
4.50%
Lease Rate
$23.40 /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%
$1,037,120
Cap Rate 7%
$740,800
Cap Rate 9%
$576,178
Alternative Uses
Best Use
Specialty Retail
$740.8K
$648.2K – $864.3K
NOI $51,856 @ 7.0% cap · market cap 3.99%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$766.3K
$670.5K – $894.1K
NOI $53,643 @ 7.0% cap · market cap 4.13%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
469
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 37924, TN
12,894
Population
6,052
Households
2.1
Avg Household Size
41
Median Age
28%
College-Educated
91%
High-School Grad
27.9 sq mi
ZIP Area
462
Density / Sq Mi
$73,794
Median Household Income
$40,594
Median Earnings
$1,020
Median Rent
$217,300
Median Home Value
Market
Vacancy Rate% for Retail in Knoxville, TN
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Conventional restaurant - Former restaurant location near Amazon fulfillment center and I-640.
Where is this conventional restaurant located?
The property is located at 2904 Knoxville Center Dr Knoxville, TN.
What is the asking price?
The asking price for this property is $1,300,000.
What are key features of this property?
This property features: Located directly across from the new Amazon fulfillment center, providing a large, built‑in customer base.; Prime location in the Upper East side of Knoxville with high traffic counts (79,941 on I‑640 and 18,428 on Millertown Pike).; Easy access to I‑640, convenient for both customers and employees.
