Renovated Commercial Building Near
For Sale
$650,000
722 Park Ave, Lebanon, TN 37087
Renovated 2,000 SF commercial building suitable for various business uses.
Property Size1,989 SF
Price / SF$326.80
Days on Market448
Property Features for 722 Park Ave
General Information
Standard status
Active
Size
1,989 SF
Building Details
Year Built
1959
Listing Agency:
RE/MAX CHOICE PROPERTIES
(615) 444-3752
Listed By:
JOSEPH GOODMAN CRS,ABR,GRI,SRES,SME
Source:
Corcoran
Added: Jun 11, 2025
Changed: Mar 16
Last Checked: Apr 24 at 8:15AM
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 RE/MAX CHOICE PROPERTIES
Investment Insights
Based on property information with market context.
Located less than a mile from Interstate I-40 and 30 miles from Nashville, the property at 722 Park Avenue in Lebanon, Tennessee, is a single-level, fully renovated commercial building. Zoned Commercial Neighborhood (CN), the building spans approximately 2,000 square feet and features 4 bedrooms and 2 bathrooms with modern finishes. The layout is suited for office, medical, professional service, or live/work arrangements. The property is move-in ready. The surrounding area is a commercial corridor anchored by national retailers, including Walmart Supercenter, Lowe’s Home Improvement, Walgreens, Tractor Supply Co., Kroger, Big Lots, AutoZone, Harbor Freight Tools, and Dollar General. Local businesses such as Snow White Drive-In and Painturo’s Pizza, along with shops and dining in Lebanon’s historic Town Square, are also nearby. TDOT reports daily traffic counts of 3,490 cars per day, with 20,815 at the Raceway. The property offers visibility, accessibility, and versatility for business uses and rental income.
Key Highlights
- Prime Location: Less than a mile from I‑40 in rapidly growing Lebanon, TN, offering easy access and high visibility.
- Fully Renovated: Move‑in ready, single‑level 2,000 sq ft building with modern finishes.
- Versatile Layout: Adaptable design with 4 bedrooms and 2 bathrooms, ideal for various uses.
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
$45,486
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
7.00%
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%
$909,720
$909.7K
Cap Rate 7%
$649,800
$649.8K
Cap Rate 9%
$505,400
$505.4K
Market Conditions
NOI Build-Up for 1,989 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
$67.5K $33.96/SF
− Vacancy
−$2.6K −$1.29/SF
EGI
$65.0K $32.67/SF
− OpEx
−$19.5K −$9.80/SF
NOI
$45.5K $22.87/SF
Area
Wilson County, TN
Vacancy
3.80%
Lease Rate
$33.96 /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%
$909,720
Cap Rate 7%
$649,800
Cap Rate 9%
$505,400
Alternative Uses
Best Use
Retail
$649.8K
$568.6K – $758.1K
NOI $45,486 @ 7.0% cap · market cap 7.00%
Second Best
Office B
$475.4K
$416.0K – $554.6K
NOI $33,278 @ 7.0% cap · market cap 5.12%
Theoretical Best
Warehouse
$2.61M
$2.28M – $3.04M
NOI $182,575 @ 7.0% cap · market cap 28.09%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
236
Businesses Nearby
Explore this area
Business Placement
Demographics for 37087, TN
51,658
Population
21,800
Households
2.4
Avg Household Size
39
Median Age
29%
College-Educated
92%
High-School Grad
164.9 sq mi
ZIP Area
313
Density / Sq Mi
$80,978
Median Household Income
$43,253
Median Earnings
$1,134
Median Rent
$359,900
Median Home Value
Market
Vacancy Rate% for Office in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Office units - Renovated 2,000 SF commercial building suitable for various business uses.
Where is this office units located?
The property is located at 722 Park Ave Lebanon, TN.
What is the asking price?
The asking price for this property is $650,000.
What are key features of this property?
This property features: Prime Location: Less than a mile from I‑40 in rapidly growing Lebanon, TN, offering easy access and high visibility.; Fully Renovated: Move‑in ready, single‑level 2,000 sq ft building with modern finishes.; Versatile Layout: Adaptable design with 4 bedrooms and 2 bathrooms, ideal for various uses.
