Drive-Through Restaurant with
For Sale
$979,000
71 Carriage House Drive, Jackson, TN 38305
Commercial Sale, Jackson, TN
Property Size2,768 SF
Lot Size0.50 Acres
Price / SF$353.68
Days on Market274
Property Features for 71 Carriage House Drive
General Information
Property type
Commercial Sale
Property subtype
Retail
Zoning description
B5 Highway Business
Parking
19
Elementary school district
Jackson Madison Consolidated District
Directions
Interstate 40 at exit 82. 1 Block south in Jackson Plaza/
Standard status
Active
APN
055E A 002.01
Size
2,768 SF
Lot size
0.50 Acres
Taxes and HOA fees
Tax Annual Amount
6260
Utilities
Sewer type
Public Sewer
Heating system
Central, Natural Gas, Forced Air
Cooling system
Electric, Central Air
Water source
Public
Building Details
Year built
1981
Floors in Building
1
Flooring type
Tile - Ceramic
Building materials
Brick
Roof type
Flat
Listing Agency:
Hickman Realty Group Inc.-Jack
(731) 664-1006
Listed By:
Chris Carothers · License #250361
(731) 616-9464
Added: Nov 20, 2025
Changed: Aug 19
Last Checked: Aug 21 at 7:06PM
MLS# 2505524
Copyright © 2026 Central West Tennessee Association of Realtors. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
This vacant fast-casual restaurant property includes a drive-through, outdoor seating, and a complete set of furniture, fixtures, and equipment. The sale includes point-of-sale equipment, an updated drive-through menu board, and an updated POS system installed in 2022. An exterior 12 x 20 wired storage building adds supplemental space for operations or inventory.
The 2,768-square-foot building sits on 0.5 acres at 71 Carriage House Drive in Jackson, Tennessee. Constructed in 1981, the property features brick construction, ceramic tile flooring, a flat roof, central air conditioning, and forced-air natural gas heat. Public water and public sewer serve the site.
The 2,768-square-foot building sits on 0.5 acres at 71 Carriage House Drive in Jackson, Tennessee. Constructed in 1981, the property features brick construction, ceramic tile flooring, a flat roof, central air conditioning, and forced-air natural gas heat. Public water and public sewer serve the site.
Key Highlights
- 2,768‑square‑foot restaurant building on 0.5 acres
- Drive‑through service with outdoor seating
- Furniture, fixtures, equipment, and POS equipment included
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
$36,359
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
3.71%
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%
$727,180
$727.2K
Cap Rate 7%
$519,414
$519.4K
Cap Rate 9%
$403,989
$404.0K
Market Conditions
NOI Build-Up for 2,768 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
$49.8K $18.00/SF
− Vacancy
−$1.3K −$0.49/SF
EGI
$48.5K $17.51/SF
− OpEx
−$12.1K −$4.38/SF
NOI
$36.4K $13.14/SF
Area
Madison County, TN
Vacancy
2.70%
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%
$727,180
Cap Rate 7%
$519,414
Cap Rate 9%
$403,989
Alternative Uses
Best Use
Specialty Retail
$519.4K
$454.5K – $606.0K
NOI $36,359 @ 7.0% cap · market cap 3.71%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$570.0K
$498.7K – $665.0K
NOI $39,899 @ 7.0% cap · market cap 4.08%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
679
Businesses Nearby
Explore this area
Business Placement
Demographics for 38305, TN
52,686
Population
22,950
Households
2.3
Avg Household Size
40
Median Age
32%
College-Educated
94%
High-School Grad
128.0 sq mi
ZIP Area
412
Density / Sq Mi
$66,292
Median Household Income
$37,416
Median Earnings
$1,201
Median Rent
$221,200
Median Home Value
Market
Vacancy Rate% for Retail in South region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Drive through restaurant - Vacant fast-casual restaurant property with drive-through service, outdoor seating, and included furniture, fixtures, and point-of-sale equipment.
Where is this drive through restaurant located?
The property is located at 71 Carriage House Drive Jackson, TN.
What is the asking price?
The asking price for this property is $979,000.
What are key features of this property?
This property features: 2,768‑square‑foot restaurant building on 0.5 acres; Drive‑through service with outdoor seating; Furniture, fixtures, equipment, and POS equipment included
