Building Details

Building Size 6,264 SF

Buildings 1

Listing Agency: Dewey Property Advisors S***@deweypa.com Show Phone

Listed By: Scott Raines, CCIM · License #NC #226165 Show Phone

Source: Deweypa

Added: May 14 Changed: Aug 31 Last Checked: Sep 1 at 3:24PM

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Investment Insights

Based on property information with market context.

This storefront property includes approximately 6,264 square feet of commercial space on a 0.12-acre parcel. The building previously operated as a restaurant and bakery, providing a commercial layout associated with food-service use.

Positioned in downtown Chimney Rock Village, the property sits along a tourism-oriented corridor in Western North Carolina. It is across from the entrance to Chimney Rock State Park and offers walkable access, strong visibility, and proximity to established businesses serving visitors. The surrounding setting combines a Main Street location with direct exposure to a prominent regional attraction.

Key Highlights

• 6,264 SF commercial building on 0.12 acres
• Former restaurant and bakery property
• Main Street location in downtown Chimney Rock Village

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

$61,941

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

7.75%

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%

$1,238,820 $1.2M

Cap Rate 7%

$884,871 $884.9K

Cap Rate 9%

$688,233 $688.2K

Market Conditions

NOI Build-Up for 6,264 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

$90.2K $14.40/SF

− Vacancy

−$1.7K −$0.27/SF

EGI

$88.5K $14.13/SF

− OpEx

−$26.5K −$4.24/SF

NOI

$61.9K $9.89/SF

Area

Rutherford County, NC

Vacancy

1.90%

Lease Rate

$14.40 /SF/Yr

Expense Ratio

30.00%

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%

$1,238,820

Cap Rate 7%

$884,871

Cap Rate 9%

$688,233

Alternative Uses

Best Use

Specialty Retail

$1.06M

$928.6K – $1.24M (±1% cap)

NOI $74,290 @ 7.0% cap · market cap 9.30%

Second Best

Retail

$884.9K

$774.3K – $1.03M (±1% cap)

NOI $61,941 @ 7.0% cap · market cap 7.75%

Theoretical Best

Office A

$1.38M

$1.21M – $1.61M (±1% cap)

NOI $96,696 @ 7.0% cap · market cap 12.10%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Property Profile

Current Use

Storefront properties

Suggested Use

Top Pick Furniture & Home Goods (Bike/Boat/Book/etc) Store Parking Lot & Garage Hair Salon Acupuncture Bakery

Score = modeled unmet demand for each use within ~1 mi (higher = bigger opportunity). Zoning and permitted uses should be independently verified with local authorities.

Location Intelligence

Trade Area within ½ mile

113

Businesses Nearby

Well-served

Demand for This Use

Explore this area Business Placement

Demographics for 28720, NC

125

Population

170

Households

0.7

Avg Household Size

57

Median Age

29%

College-Educated

99%

High-School Grad

9.3 sq mi

ZIP Area

13

Density / Sq Mi

$44,417

Median Earnings

$1,358

Median Rent

$361,100

Median Home Value

Market

Vacancy Rate% for Retail in South region

7% 2020

6.2% 2021

5.1% 2022

4.8% 2023

4.9% 2024

5.4% 2025

Questions? Ask Rey

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Frequently Asked Questions

What type of property is this?

Storefront property - Former restaurant and bakery space with walkable access amid established tourism-oriented businesses.

Where is this storefront property located?

The property is located at 390 Main St Chimney Rock, NC.

What is the asking price?

The asking price for this property is $799,000.

What are key features of this property?

This property features: 6,264 SF commercial building on 0.12 acres; Former restaurant and bakery property; Main Street location in downtown Chimney Rock Village