Former Restaurant with
For Sale
$170,000
400 S Main Avenue, Magee, MS 39111
Former restaurant with drive-through and covered parking on corner lot.
Property Size1,222 SF
Price / SF$139.12
Days on Market1586
Property Features for 400 S Main Avenue
General Information
Standard status
Active
Size
1,222 SF
Property subtype
Retail
Building Details
Year Built
1978
Listing Agency:
Main Street Realty LLC
(601) 849-3226
Listed By:
Chris Curlee · License #B15845
(601) 849-3226
Source:
Xome
Added: Apr 5, 2022
Changed: Jul 10
Last Checked: Jul 31 at 8:24PM
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 Main Street Realty LLC
Investment Insights
Based on property information with market context.
This property, formerly a Sonic restaurant, is situated on a corner lot and features a drive-through. The 1,222 square-foot building benefits from high traffic flow due to its location on Main Avenue in Magee, Mississippi. The site provides ingress and egress on two sides, enhancing accessibility. Covered parking is available. This property presents great potential for various business ventures.
Key Highlights
- High‑traffic location on Main Ave, ideal for business.
- Corner lot with ingress/egress on two sides.
- Covered parking available.
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
$13,583
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
7.99%
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%
$271,660
$271.7K
Cap Rate 7%
$194,043
$194.0K
Cap Rate 9%
$150,922
$150.9K
Market Conditions
NOI Build-Up for 1,222 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
$19.1K $15.60/SF
− Vacancy
−$953 −$0.78/SF
EGI
$18.1K $14.82/SF
− OpEx
−$4.5K −$3.70/SF
NOI
$13.6K $11.11/SF
Area
Simpson County, MS
Vacancy
5.00%
Lease Rate
$15.60 /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%
$271,660
Cap Rate 7%
$194,043
Cap Rate 9%
$150,922
Alternative Uses
Best Use
Specialty Retail
$194.0K
$169.8K – $226.4K
NOI $13,583 @ 7.0% cap · market cap 7.99%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$209.4K
$183.2K – $244.3K
NOI $14,658 @ 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
496
Businesses Nearby
187k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 48%
Dining 30%
Apparel 10%
Groceries 8%
McDonald's
Dining
35,861 visits/mo
0.3 miles
Circle K
Shops & Services
17,119 visits/mo
0.3 miles
Dollar Tree
Shops & Services
15,799 visits/mo
0.4 miles
Piggly Wiggly
Groceries
15,634 visits/mo
0.3 miles
Circle K
Shops & Services
14,416 visits/mo
0.2 miles
Demographics for 39111, MS
9,517
Population
4,049
Households
2.4
Avg Household Size
39
Median Age
15%
College-Educated
79%
High-School Grad
141.5 sq mi
ZIP Area
67
Density / Sq Mi
$46,399
Median Household Income
$30,586
Median Earnings
$794
Median Rent
$119,200
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?
Drive through restaurant - Former restaurant with drive-through and covered parking on corner lot.
Where is this drive through restaurant located?
The property is located at 400 S Main Avenue Magee, MS.
What is the asking price?
The asking price for this property is $170,000.
What are key features of this property?
This property features: High‑traffic location on Main Ave, ideal for business.; Corner lot with ingress/egress on two sides.; Covered parking available.
