Memphis Walgreens Investment
For Sale
Contact for pricing
3515 Park Ave, Memphis, TN 38111
Walgreens property for sale with long-term lease and rental increases.
Property Size15,435 SF
Price / SF$240
Days on Market182
Property Features for 3515 Park Ave
General Information
Standard status
Active
Size
15,435 SF
Property subtype
Retail
Zoning
CMU-1
Building Details
Year Built
2003
Listing Agency:
Pharma Property Group
(619) 297-0055
Listed By:
Jason Pongsrikul · License #CA 01918332
Source:
Crexi
Added: Feb 10
Changed: Aug 8
Last Checked: Aug 3 at 2:23PM
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 Pharma Property Group
Investment Insights
Based on property information with market context.
The Walgreens property, located at 3515 Park Ave, Memphis, TN 38111, is available for sale. Walgreens has operated at this location for 23 years and has 9 years remaining on its lease. The lease includes 5% rental increases every 5 years, including in each of the twelve 5-year options. After the next increase, the rent will be $16.80 per square foot, aligning with the local retail market rate of $16 to $18 per square foot. The lease is an absolute triple net lease, meaning there are no landlord obligations. The property ranks in the top 25% of Walgreens nationwide. It is strategically located 0.5 miles from the University of Memphis, which has over 24,000 students and faculty. The property is also 5.5 miles from Downtown Memphis, supporting 101,000 households and a total population of over 245,000 within a 5-mile radius. Additionally, it is 2.5 miles from the FedEx World Hub, which employs over 30,000 people locally and generates annual revenues exceeding $45 billion. The property is situated within a dense retail corridor with over 8.6 million square feet of existing retail space within a 3-mile radius, with a vacancy rate under 4%. The property size is 15,435 square feet.
Key Highlights
- Long‑term Walgreens tenancy with 9 years remaining on the lease, providing stable income.
- Absolute triple net (NNN) lease structure, eliminating landlord responsibilities.
- Strong Walgreens performance, ranking in the top 25% nationwide according to Placer.AI.**
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
$185,729
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
5.01%
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%
$3,714,580
$3.7M
Cap Rate 7%
$2,653,271
$2.7M
Cap Rate 9%
$2,063,656
$2.1M
Market Conditions
NOI Build-Up for 15,435 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
$259.3K $16.80/SF
− Vacancy
−$11.7K −$0.76/SF
EGI
$247.6K $16.04/SF
− OpEx
−$61.9K −$4.01/SF
NOI
$185.7K $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%
$3,714,580
Cap Rate 7%
$2,653,271
Cap Rate 9%
$2,063,656
Alternative Uses
Best Use
Specialty Retail
$2.65M
$2.32M – $3.10M
NOI $185,729 @ 7.0% cap · market cap 5.01%
Second Best
Retail
$2.20M
$1.92M – $2.57M
NOI $153,964 @ 7.0% cap · market cap 4.16%
Theoretical Best
Office A
$4.56M
$3.99M – $5.32M
NOI $319,319 @ 7.0% cap · market cap 8.62%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
491
Businesses Nearby
55k
Monthly Visits Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Dining 68%
Shops & Services 32%
Wendy's
Dining
15,062 visits/mo
0.4 miles
Cook Out
Dining
12,331 visits/mo
0.3 miles
Dollar General
Shops & Services
9,174 visits/mo
0.2 miles
American Deli
Dining
7,165 visits/mo
0.1 miles
Exxon
Shops & Services
6,444 visits/mo
0.2 miles
Demographics for 38111, TN
40,533
Population
20,084
Households
2
Avg Household Size
34
Median Age
38%
College-Educated
89%
High-School Grad
9.8 sq mi
ZIP Area
4,136
Density / Sq Mi
$52,806
Median Household Income
$33,449
Median Earnings
$1,077
Median Rent
$165,200
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
- Walgreens Pharmacy — 3515 Park Ave, Memphis, TN 38111
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- Kimberly Gardella — 1201 Getwell Rd, Memphis, TN 381117315
- Katerina Alharir — 1201 Getwell Rd, Memphis, TN 381117315
- Tonya Burress — 1201 Getwell Rd, Memphis, TN 381117315
Frequently Asked Questions
What type of property is this?
Drug store - Walgreens property for sale with long-term lease and rental increases.
Where is this drug store located?
The property is located at 3515 Park Ave Memphis, TN.
What is the asking price?
The asking price for this property is $3,704,400.
What are key features of this property?
This property features: Long‑term Walgreens tenancy with 9 years remaining on the lease, providing stable income.; Absolute triple net (NNN) lease structure, eliminating landlord responsibilities.; Strong Walgreens performance, ranking in the top 25% nationwide according to Placer.AI.**
