Restaurant with Pylon
New
For Sale
$425,000
5307 North Middlebrook Pike, Knoxville, TN 37921
The sale includes FF&E and inventory, with recent equipment and electrical updates.
Property Size1,260 SF
Days on Market2
Property Features for 5307 North Middlebrook Pike
General Information
Standard status
Active
Size
1,260 SF
Total Parking Spaces
20
Property subtype
Retail
Restaurant
Seating Capacity
52
Commercial Hood
Yes
Grease Trap
Yes
Equipment Included
Yes
Additional Details
Furnished
Yes
Business Included
Yes
Pylon Signage
Yes
Building Details
Building Size
1,260 SF
Year Built
1920
Listing Agency:
SVN I Wood Properties
(513) 315-7694
Listed By:
Elizabeth Houser · License #377171
(513) 315-7694
Source:
Svn
Added: Aug 8
Changed: Aug 9
Last Checked: Aug 9 at 7:27AM
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 SVN I Wood Properties
Investment Insights
Based on property information with market context.
This restaurant property at 5307 North Middlebrook Pike includes seating for 52, 20 parking spaces, FF&E, and inventory. Recent improvements include a new grill installed in 2024, one new fryer, a recently inspected and cleaned hood, a rewired freezer, and new electrical service and panel completed in 2023. The grease trap is cleaned monthly, and the HVAC system remains under warranty. Built in 1920, the property is configured for restaurant operations and may also accommodate a coffee shop, ice cream shop, deli, or office use.
A large pylon sign provides street-facing exposure along North Middlebrook Pike. The surrounding commercial corridor includes industrial, office, and retail properties, with traffic described as consistent throughout the day. The property is offered with its existing equipment and inventory package, supporting an owner-operated restaurant or an alternative concept.
A large pylon sign provides street-facing exposure along North Middlebrook Pike. The surrounding commercial corridor includes industrial, office, and retail properties, with traffic described as consistent throughout the day. The property is offered with its existing equipment and inventory package, supporting an owner-operated restaurant or an alternative concept.
Key Highlights
- 52‑seat restaurant with 20 parking spaces
- FF&E and inventory convey with the sale
- New grill installed in 2024, plus one new fryer
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
$21,118
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
4.97%
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%
$422,360
$422.4K
Cap Rate 7%
$301,686
$301.7K
Cap Rate 9%
$234,644
$234.6K
Market Conditions
NOI Build-Up for 1,260 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
$29.5K $23.40/SF
− Vacancy
−$1.3K −$1.05/SF
EGI
$28.2K $22.35/SF
− OpEx
−$7.0K −$5.59/SF
NOI
$21.1K $16.76/SF
Area
Knoxville, TN
Vacancy
4.50%
Lease Rate
$23.40 /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%
$422,360
Cap Rate 7%
$301,686
Cap Rate 9%
$234,644
Alternative Uses
Best Use
Specialty Retail
$301.7K
$264.0K – $352.0K
NOI $21,118 @ 7.0% cap · market cap 4.97%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$312.1K
$273.1K – $364.1K
NOI $21,845 @ 7.0% cap · market cap 5.14%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
Turnkey business
Opportunity
Yes
Commercial hood
Yes
Grease trap
Location Intelligence
Trade Area within ½ mile
218
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 37921, TN
28,903
Population
12,969
Households
2.2
Avg Household Size
35
Median Age
27%
College-Educated
87%
High-School Grad
15.9 sq mi
ZIP Area
1,818
Density / Sq Mi
$57,813
Median Household Income
$37,518
Median Earnings
$1,147
Median Rent
$204,300
Median Home Value
Market
Vacancy Rate% for Retail in Knoxville, TN
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Conventional restaurant - The sale includes FF&E and inventory, with recent equipment and electrical updates.
Where is this conventional restaurant located?
The property is located at 5307 North Middlebrook Pike Knoxville, TN.
What is the asking price?
The asking price for this property is $425,000.
What are key features of this property?
This property features: 52‑seat restaurant with 20 parking spaces; FF&E and inventory convey with the sale; New grill installed in 2024, plus one new fryer
