Murrells Inlet Redevelopment
For Sale
$2,990,000
Pending
3986 Highway 17 Business, Murrells Inlet, SC 29576
2.9-acre commercial property with redevelopment potential near Marsh Walk.
Property Size18,650 SF
Lot Size2.90 Acres
Days on Market513
Property Features for 3986 Highway 17 Business
General Information
Standard status
Pending
Size
18,650 SF
Lot size
2.90 Acres
Listing Agency:
NAI The Litchfield Company
(843) 979-6754
Listed By:
Abernethy & Jones Commercial Group · License #1033
(843) 979-6754
Source:
Exprealty
Added: Mar 17, 2025
Changed: Jul 6
Last Checked: Aug 10 at 9:24AM
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 NAI The Litchfield Company
Investment Insights
Based on property information with market context.
This 2.9-acre commercial property is located across from the Marsh Walk in Murrells Inlet. The property includes an 18,650 square foot building, with 16,000 square feet under roof. Zoned General Commercial, the site offers flexibility for various business uses. A long-term tenant, Lazy Gator Gifts, has operated on the site for 18 years. A new roof adds value and reduces maintenance costs. Conceptual plans are available for residential development on the rear parcels, or for a paid parking opportunity. The property presents a redevelopment opportunity in a sought-after commercial location.
Key Highlights
- Prime 2.9‑acre commercial property directly across from the Marsh Walk in Murrells Inlet.
- Existing 18,650 sq. ft. building (16,000 sq. ft. under roof) with long‑term tenant (Lazy Gator Gifts) providing immediate income.
- Zoned General Commercial, offering flexibility for various business uses and future redevelopment.
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
$271,883
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
9.09%
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%
$5,437,660
$5.4M
Cap Rate 7%
$3,884,043
$3.9M
Cap Rate 9%
$3,020,922
$3.0M
Market Conditions
NOI Build-Up for 18,650 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
$398.4K $21.36/SF
− Vacancy
−$10.0K −$0.53/SF
EGI
$388.4K $20.83/SF
− OpEx
−$116.5K −$6.25/SF
NOI
$271.9K $14.58/SF
Area
Horry County, SC
Vacancy
2.50%
Lease Rate
$21.36 /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%
$5,437,660
Cap Rate 7%
$3,884,043
Cap Rate 9%
$3,020,922
Alternative Uses
Best Use
Retail
$3.88M
$3.40M – $4.53M
NOI $271,883 @ 7.0% cap · market cap 9.09%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$4.73M
$4.14M – $5.51M
NOI $330,866 @ 7.0% cap · market cap 11.07%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
965
Businesses Nearby
33k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 91%
Dining 9%
Speedway
Shops & Services
17,371 visits/mo
0.5 miles
Wells Fargo
Shops & Services
6,295 visits/mo
0.5 miles
Bank of America
Shops & Services
4,858 visits/mo
0.3 miles
South State Bank
Shops & Services
1,711 visits/mo
0.4 miles
Fox's Pizza Den
Dining
1,462 visits/mo
0.5 miles
Demographics for 29576, SC
32,476
Population
22,097
Households
1.5
Avg Household Size
61
Median Age
32%
College-Educated
96%
High-School Grad
30.5 sq mi
ZIP Area
1,065
Density / Sq Mi
$70,343
Median Household Income
$36,352
Median Earnings
$1,467
Median Rent
$315,700
Median Home Value
Market
Vacancy Rate% for Retail in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Individual retail property - 2.9-acre commercial property with redevelopment potential near Marsh Walk.
Where is this individual retail property located?
The property is located at 3986 Highway 17 Business Murrells Inlet, SC.
What is the asking price?
The asking price for this property is $2,990,000.
What are key features of this property?
This property features: Prime 2.9‑acre commercial property directly across from the Marsh Walk in Murrells Inlet.; Existing 18,650 sq. ft. building (16,000 sq. ft. under roof) with long‑term tenant (Lazy Gator Gifts) providing immediate income.; Zoned General Commercial, offering flexibility for various business uses and future redevelopment.
