Established Restaurant on Highway
For Sale
Contact for pricing
3425 S 6th St, Terre Haute, IN 47802
Regional franchise restaurant with high visibility and accessibility.
Property Size2,800 SF
Price / SF$285.71
Days on Market149
Property Features for 3425 S 6th St
General Information
Standard status
Active
Size
2,800 SF
Class
A
Property subtype
Business for Sale
Zoning
Commercial 2
Investment Type
Owner/User
Building Details
Year Built
2023
Buildings
1
Stories
1
Units
1
Listing Agency:
Preferred Realty LLC
(812) 249-3920
Listed By:
Becky Klingele · License #IN RB14028499
Source:
Crexi
Added: Mar 24
Changed: Aug 17
Last Checked: Aug 18 at 8:15AM
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 Preferred Realty LLC
Investment Insights
Based on property information with market context.
This established specialty drinks and snacks regional franchise restaurant is positioned along the highly traveled U.S. Hwy Route 41 near the Interstate 70 interchange. It offers exceptional visibility and accessibility in Terre Haute’s most active commercial corridor. The location benefits from a commuter-driven and destination retail market, with consistent demand from both drive-thru and walk-in customers. The site is engineered for efficient ingress and egress, supporting strong throughput and optimal drive-thru performance during peak hours. Nearby traffic counts exceed 25,000–35,000 vehicles per day. The property is in proximity to national retailers and major shopping destinations, as well as strong interstate spillover traffic from I-70. This tertiary market draws from a diverse and reliable customer base including retail employees from surrounding big-box and national retailers, healthcare professionals from nearby medical facilities, logistics and light industrial workforce, interstate and regional highway travelers, and a consistent student population. The property size is 2800 square feet.
Key Highlights
- High‑visibility location on U.S. Hwy Route 41 near Interstate 70 interchange.
- Established specialty drinks and snacks regional franchise restaurant.
- Engineered for efficient ingress/egress and optimal drive‑thru performance.
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
$36,137
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
4.52%
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%
$722,740
$722.7K
Cap Rate 7%
$516,243
$516.2K
Cap Rate 9%
$401,522
$401.5K
Market Conditions
NOI Build-Up for 2,800 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
$50.4K $18.00/SF
− Vacancy
−$2.2K −$0.79/SF
EGI
$48.2K $17.21/SF
− OpEx
−$12.0K −$4.30/SF
NOI
$36.1K $12.91/SF
Area
Vigo County, IN
Vacancy
4.40%
Lease Rate
$18.00 /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%
$722,740
Cap Rate 7%
$516,243
Cap Rate 9%
$401,522
Alternative Uses
Best Use
Specialty Retail
$516.2K
$451.7K – $602.3K
NOI $36,137 @ 7.0% cap · market cap 4.52%
Second Best
—
—
no second resolved use
Theoretical Best
Warehouse
$2.02M
$1.77M – $2.36M
NOI $141,485 @ 7.0% cap · market cap 17.69%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
715
Businesses Nearby
357k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Dining 58%
Shops & Services 22%
Apparel 10%
Hotels & Casinos 6%
Texas Roadhouse
Dining
49,744 visits/mo
0.5 miles
Speedway
Shops & Services
32,020 visits/mo
0.5 miles
Cracker Barrel Old Country Store
Dining
26,657 visits/mo
0.1 miles
Starbucks
Dining
21,783 visits/mo
0.3 miles
Steak 'n Shake
Dining
19,909 visits/mo
0.3 miles
Demographics for 47802, IN
34,229
Population
14,682
Households
2.3
Avg Household Size
39
Median Age
28%
College-Educated
90%
High-School Grad
158.8 sq mi
ZIP Area
216
Density / Sq Mi
$58,880
Median Household Income
$36,457
Median Earnings
$865
Median Rent
$165,800
Median Home Value
Market
Vacancy Rate% for Retail in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Drive through restaurant - Regional franchise restaurant with high visibility and accessibility.
Where is this drive through restaurant located?
The property is located at 3425 S 6th St Terre Haute, IN.
What is the asking price?
The asking price for this property is $800,000.
What are key features of this property?
This property features: High‑visibility location on U.S. Hwy Route 41 near Interstate 70 interchange.; Established specialty drinks and snacks regional franchise restaurant.; Engineered for efficient ingress/egress and optimal drive‑thru performance.
