Historic Mixed-Use Restaurant
For Sale
$1,250,000
425 Main Street, Hendersonville, NC 28792
Historic building with leased restaurant ground floor and an Airbnb unit upstairs, supported by recent interior and exterior improvements.
Property Size3,043 SF
Price / SF$410.78
Days on Market173
Property Features for 425 Main Street
General Information
Standard status
Active
Size
3,043 SF
Property subtype
General Commercial
Amenities
Central Air
3
Paved Driveway.
City
Level
City Road, Paved Road, Level.
Building Details
Year Built
1896
Tenancy
Single
Listing Agency:
Howard Hanna Beverly-Hanks
(828) 329-1529
Listed By:
Steve Dozier · License #197846
(828) 329-1529
Source:
Xome
Added: Mar 12
Changed: Aug 25
Last Checked: Aug 31 at 12:46PM
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 Howard Hanna Beverly-Hanks
Investment Insights
Based on property information with market context.
This historic mixed-use building, originally built in 1896, includes a commercial ground-floor restaurant space and a separate Airbnb unit upstairs. The property is currently under a long-term lease with an established tenant (Café REL), providing immediate rental income. Recent capital improvements include a completed interior and exterior upgrade within the last two years, and the building features updated electrical, plumbing, and HVAC systems alongside its historic character.
The property is located in the 400 block of N. Main Street in Hendersonville’s Central Business District, bringing it into a highly active retail environment.
Accessibility features include a level entry, wide door clearances, and accessible restroom facilities. The building totals 3,043 square feet, and the sale is described as focused on the commercial ground floor; the owner is open to discussing sale of the upper level at a later date.
The property is located in the 400 block of N. Main Street in Hendersonville’s Central Business District, bringing it into a highly active retail environment.
Accessibility features include a level entry, wide door clearances, and accessible restroom facilities. The building totals 3,043 square feet, and the sale is described as focused on the commercial ground floor; the owner is open to discussing sale of the upper level at a later date.
Key Highlights
- Built in 1896; 3,043 sq. ft. historic downtown building with updated electrical, plumbing, and HVAC systems
- Long‑term lease in place with established tenant (Café REL) on the commercial ground floor for current income
- Completed total interior and exterior improvements within the last 2 years
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
$40,300
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
3.22%
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%
$806,000
$806.0K
Cap Rate 7%
$575,714
$575.7K
Cap Rate 9%
$447,778
$447.8K
Market Conditions
NOI Build-Up for 3,043 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
$54.8K $18.00/SF
− Vacancy
−$1.0K −$0.34/SF
EGI
$53.7K $17.66/SF
− OpEx
−$13.4K −$4.41/SF
NOI
$40.3K $13.24/SF
Area
Henderson County, NC
Vacancy
1.90%
Lease Rate
$18.00 /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%
$806,000
Cap Rate 7%
$575,714
Cap Rate 9%
$447,778
Alternative Uses
Best Use
Specialty Retail
$575.7K
$503.8K – $671.7K
NOI $40,300 @ 7.0% cap · market cap 3.22%
Second Best
Apartment 5plus
$345.5K
$302.3K – $403.1K
NOI $24,184 @ 7.0% cap · market cap 1.93%
Theoretical Best
Office A
$1.01M
$887.3K – $1.18M
NOI $70,987 @ 7.0% cap · market cap 5.68%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Single-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
2,331
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 28792, NC
35,962
Population
18,121
Households
2
Avg Household Size
44
Median Age
26%
College-Educated
87%
High-School Grad
102.9 sq mi
ZIP Area
349
Density / Sq Mi
$55,066
Median Household Income
$32,312
Median Earnings
$1,131
Median Rent
$249,300
Median Home Value
Market
Vacancy Rate% for Multifamily in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Conventional restaurant - Historic building with leased restaurant ground floor and an Airbnb unit upstairs, supported by recent interior and exterior improvements.
Where is this conventional restaurant located?
The property is located at 425 Main Street Hendersonville, NC.
What is the asking price?
The asking price for this property is $1,250,000.
What are key features of this property?
This property features: Built in 1896; 3,043 sq. ft. historic downtown building with updated electrical, plumbing, and HVAC systems; Long‑term lease in place with established tenant (Café REL) on the commercial ground floor for current income; Completed total interior and exterior improvements within the last 2 years
