Three-Property Duplex
For Sale
$173,000
Pending
540 Berclair Rd, Memphis, TN 38122
Package includes three income-producing residential properties with long-term tenants in place.
Property Size1,659 SF
Days on Market116
Property Features for 540 Berclair Rd
General Information
Standard status
Pending
Size
1,659 SF
Property subtype
Residential Income
Financials
Asking Price
$520,000
Gross Income
$68,400
Listing Agency:
BEST Real Estate Company
(901) 497-4957
Listed By:
Elizabeth Castillo · License #326603
(901) 497-4957
Source:
Exprealty
Added: Apr 30
Changed: Aug 21
Last Checked: Aug 23 at 7:59AM
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 BEST Real Estate Company
Investment Insights
Based on property information with market context.
This offering consists of three duplex properties sold together as one package. The portfolio includes 1004-1006 Highland Ave, 1096-1098 Gordon Ave, and 540-542 Berclair Rd in Memphis, Tennessee.
Long-term tenants are in place across the properties, and the package is described as income-producing. The properties are available for sale only as a combined offering.
Long-term tenants are in place across the properties, and the package is described as income-producing. The properties are available for sale only as a combined offering.
Key Highlights
- Three duplex properties offered together
- Package sale only; properties are not offered individually
- Long‑term tenants already in place
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
$13,991
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
8.09%
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%
$279,820
$279.8K
Cap Rate 7%
$199,871
$199.9K
Cap Rate 9%
$155,456
$155.5K
Market Conditions
NOI Build-Up for 1,659 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
$21.3K $12.84/SF
− Vacancy
−$1.3K −$0.79/SF
EGI
$20.0K $12.05/SF
− OpEx
−$6.0K −$3.61/SF
NOI
$14.0K $8.43/SF
Area
Memphis, TN
Vacancy
6.17%
Lease Rate
$12.84 /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%
$279,820
Cap Rate 7%
$199,871
Cap Rate 9%
$155,456
Alternative Uses
Best Use
Multifamily LT 5
$199.9K
$174.9K – $233.2K
NOI $13,991 @ 7.0% cap · market cap 8.09%
Second Best
Apartment 5plus
$177.0K
$154.9K – $206.5K
NOI $12,388 @ 7.0% cap · market cap 7.16%
Theoretical Best
Office A
$490.3K
$429.0K – $572.0K
NOI $34,321 @ 7.0% cap · market cap 19.84%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
499
Businesses Nearby
Explore this area
Business Placement
Demographics for 38122, TN
26,432
Population
10,201
Households
2.6
Avg Household Size
33
Median Age
22%
College-Educated
74%
High-School Grad
6.8 sq mi
ZIP Area
3,887
Density / Sq Mi
$45,456
Median Household Income
$32,760
Median Earnings
$1,127
Median Rent
$108,200
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?
Duplex - Package includes three income-producing residential properties with long-term tenants in place.
Where is this duplex located?
The property is located at 540 Berclair Rd Memphis, TN.
What is the asking price?
The asking price for this property is $173,000.
What are key features of this property?
This property features: Three duplex properties offered together; Package sale only; properties are not offered individually; Long‑term tenants already in place
