Former Walgreens on Summer
For Sale
Contact for pricing
3502 Summer Ave, Memphis, TN 38122
Former Walgreens available on Summer Avenue in Memphis, Tennessee.
Property Size14,392 SF
Lot Size1.88 Acres
Price / SF$138.27
Days on Market717
Property Features for 3502 Summer Ave
General Information
Standard status
Active
Size
14,392 SF
Lot size
1.88 Acres
Property subtype
Retail
Listing Agency:
Myers Commercial Real Estate
Listed By:
Melanie Myers Bland · License #TN 288335
Source:
Crexi
Added: Aug 25, 2024
Changed: Aug 8
Last Checked: Aug 11 at 8:14PM
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 Myers Commercial Real Estate
Investment Insights
Based on property information with market context.
The former Walgreens property, situated at 3502 Summer Avenue in Memphis, Tennessee, is available for sale. The property is positioned on the corner of Summer Avenue and Highland, and includes an expansive 1.88-acre lot. The building has a total area of 14,392 square feet and features an existing drive-thru and an open floor plan.
Key Highlights
- Excellent positioning on the hard corner of Summer and Highland
- Expansive 1.88 AC
- Former Walgreens location
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
$173,179
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
8.70%
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%
$3,463,580
$3.5M
Cap Rate 7%
$2,473,986
$2.5M
Cap Rate 9%
$1,924,211
$1.9M
Market Conditions
NOI Build-Up for 14,392 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
$241.8K $16.80/SF
− Vacancy
−$10.9K −$0.76/SF
EGI
$230.9K $16.04/SF
− OpEx
−$57.7K −$4.01/SF
NOI
$173.2K $12.03/SF
Area
Memphis, TN
Vacancy
4.50%
Lease Rate
$16.80 /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%
$3,463,580
Cap Rate 7%
$2,473,986
Cap Rate 9%
$1,924,211
Alternative Uses
Best Use
Specialty Retail
$2.47M
$2.16M – $2.89M
NOI $173,179 @ 7.0% cap · market cap 8.70%
Second Best
Retail
$2.05M
$1.79M – $2.39M
NOI $143,560 @ 7.0% cap · market cap 7.21%
Theoretical Best
Office A
$4.25M
$3.72M – $4.96M
NOI $297,742 @ 7.0% cap · market cap 14.96%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
508
Businesses Nearby
28k
Monthly Visits Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Dining 81%
Shops & Services 15%
Electronics 4%
SONIC Drive In
Dining
13,706 visits/mo
0.0 miles
Kung Fu Tea
Dining
4,995 visits/mo
0.4 miles
Exxon
Shops & Services
3,735 visits/mo
0.4 miles
Jeremiah's Italian Ice
Dining
2,597 visits/mo
0.2 miles
Pizza Hut
Dining
1,611 visits/mo
0.4 miles
Demographics for 38122, TN
26,432
Population
10,201
Households
2.6
Avg Household Size
33
Median Age
22%
College-Educated
74%
High-School Grad
6.8 sq mi
ZIP Area
3,887
Density / Sq Mi
$45,456
Median Household Income
$32,760
Median Earnings
$1,127
Median Rent
$108,200
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.
Similar Off Market Nearby
- James K. Mc Donald, RPh — 3423 Summer Ave, Memphis, TN 38122
Frequently Asked Questions
What type of property is this?
Drug store - Former Walgreens available on Summer Avenue in Memphis, Tennessee.
Where is this drug store located?
The property is located at 3502 Summer Ave Memphis, TN.
What is the asking price?
The asking price for this property is $1,990,000.
What are key features of this property?
This property features: Excellent positioning on the hard corner of Summer and Highland; Expansive 1.88 AC; Former Walgreens location
