Memphis Investment Opportunity on
For Sale
Contact for pricing
Pending
7300 Winchester Rd, Memphis, TN 38125
Single tenant investment opportunity in high-traffic Memphis retail corridor.
Property Size29,620 SF
Days on Market179
Property Features for 7300 Winchester Rd
General Information
Standard status
Pending
Size
29,620 SF
Property subtype
Retail, Special Purpose
Occupancy
100%
Lease Type
Absolute Net
Investment Type
Net Lease
Net Operating Income
$637,500
Building Details
Year Built
1995
Year Renovated
2011
Tenancy
Single
Listing Agency:
Anchor Point Capital
Listed By:
Eric Vu · License #01913407
Source:
Crexi
Added: Feb 13
Changed: Aug 10
Last Checked: Aug 10 at 5:27AM
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 Anchor Point Capital
Investment Insights
Based on property information with market context.
This property presents an investment opportunity with a brand new 20-year absolute NNN lease at the close of escrow. The lease includes a substantial corporate and personal guarantee. The property is located in Memphis, TN, along Winchester Rd, a major east-west arterial, benefiting from high traffic with over 35,000 cars per day. Its location offers strategic interstate proximity, with over 92,000 cars per day on TN-385. The surrounding area is a dense infill location with over 195,000 residents within a 5-mile radius. Nearby national retailers include Walmart, Costco, Sam’s Club, Lowe’s, Home Depot, Chick Fil A, Kroger, ALDI, and Dick’s Sporting Goods. The property is less than 20 miles from downtown Memphis, TN. Memphis MSA has recently achieved a historic $100B milestone in GDP output and is the second largest economy in Tennessee, behind Nashville, and 6th among peer cities. The property offers fee simple ownership. The lease provides an annual hedge against inflation with 2% annual rent increases in the primary term and throughout option periods. The property is positioned in an income tax free state of Tennessee.
Key Highlights
- Brand New 20‑Year Absolute NNN Lease at Close of Escrow
- High‑Yield Investment Opportunity; Priced at 7.50% Cap Rate with Annual Increases
- Annual Hedge Against Inflation; 2% Annual Rent Increase in the Primary Term and Throughout Option Periods
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
$343,355
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
4.04%
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%
$6,867,100
$6.9M
Cap Rate 7%
$4,905,071
$4.9M
Cap Rate 9%
$3,815,056
$3.8M
Market Conditions
NOI Build-Up for 29,620 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
$533.2K $18.00/SF
− Vacancy
−$42.7K −$1.44/SF
EGI
$490.5K $16.56/SF
− OpEx
−$147.2K −$4.97/SF
NOI
$343.4K $11.59/SF
Area
ZIP 38125
Vacancy
8.00%
Lease Rate
$18.00 /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%
$6,867,100
Cap Rate 7%
$4,905,071
Cap Rate 9%
$3,815,056
Alternative Uses
Best Use
Retail
$4.91M
$4.29M – $5.72M
NOI $343,355 @ 7.0% cap · market cap 4.04%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$7.86M
$6.88M – $9.17M
NOI $550,221 @ 7.0% cap · market cap 6.47%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
432
Businesses Nearby
69k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Dining 69%
Shops & Services 29%
Electronics 1%
McDonald's
Dining
18,676 visits/mo
0.4 miles
SONIC Drive In
Dining
8,531 visits/mo
0.4 miles
Burger King
Dining
7,982 visits/mo
0.3 miles
Dollar General
Shops & Services
6,883 visits/mo
0.2 miles
American Deli
Dining
6,750 visits/mo
0.3 miles
Demographics for 38125, TN
40,970
Population
16,435
Households
2.5
Avg Household Size
37
Median Age
37%
College-Educated
95%
High-School Grad
19.0 sq mi
ZIP Area
2,156
Density / Sq Mi
$83,184
Median Household Income
$45,793
Median Earnings
$1,440
Median Rent
$230,400
Median Home Value
Market
Vacancy Rate% for Retail in Memphis, TN
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
NNN property - Single tenant investment opportunity in high-traffic Memphis retail corridor.
Where is this nnn property located?
The property is located at 7300 Winchester Rd Memphis, TN.
What is the asking price?
The asking price for this property is $8,500,000.
What are key features of this property?
This property features: Brand New 20‑Year Absolute NNN Lease at Close of Escrow; High‑Yield Investment Opportunity; Priced at 7.50% Cap Rate with Annual Increases; Annual Hedge Against Inflation; 2% Annual Rent Increase in the Primary Term and Throughout Option Periods
