Multi-Room Mixed-Use
For Sale
Contact for pricing
3515 Summer Avenue, Memphis, TN 38122
Existing kitchen, two bathrooms, and fenced grounds support flexible commercial use.
Property Size1,943 SF
Price / SF$180.13
Days on Market10
Property Features for 3515 Summer Avenue
General Information
Standard status
Active
Size
1,943 SF
Property subtype
Mixed Use
Zoning
Commercial Mixed Use – 3
Amenities
full kitchen
two bathrooms
fully fenced
Listing Agency:
901 Properties
Listed By:
Brook Loper · License #TN 322379
(901) 490-4770
Source:
Crexi
Added: Sep 4
Changed: Sep 9
Last Checked: Sep 13 at 6:22AM
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 901 Properties
Investment Insights
Based on property information with market context.
This 1,943 SF mixed-use commercial property is configured with 10 private single rooms, office space, a full kitchen, and two bathrooms. The multi-room layout may support continued use in its current form or adaptation for private suites and other service-oriented commercial purposes, subject to applicable approvals. Some openings currently use sliding doors installed for the prior business; future modifications would depend on the intended use and building requirements.
The property is fully fenced and located at 3515 Summer Avenue in Memphis, along an established commercial corridor approximately 8 miles from Downtown Memphis. The site is zoned Commercial Mixed Use – 3, with potential uses subject to zoning, licensing, occupancy, and governmental requirements. Shopping, dining, businesses, services, and major Memphis thoroughfares are identified as nearby context. Buyers should evaluate the property’s existing condition through actual photographs, inspections, and independent due diligence.
The property is fully fenced and located at 3515 Summer Avenue in Memphis, along an established commercial corridor approximately 8 miles from Downtown Memphis. The site is zoned Commercial Mixed Use – 3, with potential uses subject to zoning, licensing, occupancy, and governmental requirements. Shopping, dining, businesses, services, and major Memphis thoroughfares are identified as nearby context. Buyers should evaluate the property’s existing condition through actual photographs, inspections, and independent due diligence.
Key Highlights
- 1,943 SF mixed‑use commercial property
- 10 private single rooms plus office space
- Full kitchen and two bathrooms
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
$23,607
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
6.74%
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%
$472,140
$472.1K
Cap Rate 7%
$337,243
$337.2K
Cap Rate 9%
$262,300
$262.3K
Market Conditions
NOI Build-Up for 1,943 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
$42.0K $21.60/SF
− Vacancy
−$4.2K −$2.16/SF
EGI
$37.8K $19.44/SF
− OpEx
−$14.2K −$7.29/SF
NOI
$23.6K $12.15/SF
Area
Memphis, TN
Vacancy
10.00%
Lease Rate
$21.60 /SF/Yr
Expense Ratio
37.50%
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%
$472,140
Cap Rate 7%
$337,243
Cap Rate 9%
$262,300
Alternative Uses
Best Use
Mixed Use
$337.2K
$295.1K – $393.5K
NOI $23,607 @ 7.0% cap · market cap 6.74%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$574.2K
$502.5K – $670.0K
NOI $40,197 @ 7.0% cap · market cap 11.48%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Current Use
Location Intelligence
Trade Area within ½ mile
514
Businesses Nearby
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Business Placement
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
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Frequently Asked Questions
What type of property is this?
Mixed-use property - Existing kitchen, two bathrooms, and fenced grounds support flexible commercial use.
Where is this mixed-use property located?
The property is located at 3515 Summer Avenue Memphis, TN.
What is the asking price?
The asking price for this property is $350,000.
What are key features of this property?
This property features: 1,943 SF mixed‑use commercial property; 10 private single rooms plus office space; Full kitchen and two bathrooms
