Aldi Grocery
New
For Sale
Contact for pricing
785 Union Ave, Memphis, TN 38103
Long-term 10-year net lease with access to three major interstate routes.
Property Size27,800 SF
Price / SF$212.23
Days on Market4
Property Features for 785 Union Ave
General Information
Standard status
Active
Size
27,800 SF
Property subtype
RETAIL
Additional Details
Highway Access
Yes
Building Details
Tenancy
Single
Listing Agency:
Hunington Properties Inc.
Listed By:
Sandy Aron · License #218898
(713) 623-6944
Source:
Moodyscre
Added: Sep 8
Changed: Sep 9
Last Checked: Sep 11 at 6:10AM
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 Hunington Properties Inc.
Investment Insights
Based on property information with market context.
The property is a 27,800-square-foot Aldi grocery store at 785 Union Ave in Memphis, Tennessee. The asset is subject to a long-term 10-year net lease, providing a defined lease structure for the offering.
Situated in the Medical District near Downtown Memphis, the property is minutes from St. Jude Children’s Research Hospital, the University of Tennessee Health Science Center, and Methodist University Hospital. Interstate access includes I-40, I-55, and I-240.
Situated in the Medical District near Downtown Memphis, the property is minutes from St. Jude Children’s Research Hospital, the University of Tennessee Health Science Center, and Methodist University Hospital. Interstate access includes I-40, I-55, and I-240.
Key Highlights
- 27,800‑square‑foot grocery store occupied by Aldi
- Long‑term 10‑year net lease
- 785 Union Ave, Memphis, TN 38103
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
$334,517
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
5.67%
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%
$6,690,340
$6.7M
Cap Rate 7%
$4,778,814
$4.8M
Cap Rate 9%
$3,716,856
$3.7M
Market Conditions
NOI Build-Up for 27,800 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
$467.0K $16.80/SF
− Vacancy
−$21.0K −$0.76/SF
EGI
$446.0K $16.04/SF
− OpEx
−$111.5K −$4.01/SF
NOI
$334.5K $12.03/SF
Area
Memphis, TN
Vacancy
4.50%
Lease Rate
$16.80 /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%
$6,690,340
Cap Rate 7%
$4,778,814
Cap Rate 9%
$3,716,856
Alternative Uses
Best Use
Specialty Retail
$4.78M
$4.18M – $5.58M
NOI $334,517 @ 7.0% cap · market cap 5.67%
Second Best
Retail
$3.96M
$3.47M – $4.62M
NOI $277,305 @ 7.0% cap · market cap 4.70%
Theoretical Best
Office A
$8.22M
$7.19M – $9.59M
NOI $575,126 @ 7.0% cap · market cap 9.75%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Current Use
Lease Details
Single-tenant
Tenancy
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
2,842
Businesses Nearby
83k
Monthly Visits Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Dining 72%
Shops & Services 25%
Hotels & Casinos 2%
Electronics 1%
McDonald's
Dining
33,546 visits/mo
0.2 miles
Exxon
Shops & Services
15,800 visits/mo
0.4 miles
Burger King
Dining
14,492 visits/mo
0.4 miles
Arby's
Dining
9,034 visits/mo
0.3 miles
SUBWAY
Dining
3,109 visits/mo
0.2 miles
Demographics for 38103, TN
14,739
Population
8,811
Households
1.7
Avg Household Size
35
Median Age
61%
College-Educated
95%
High-School Grad
2.7 sq mi
ZIP Area
5,459
Density / Sq Mi
$75,763
Median Household Income
$60,918
Median Earnings
$1,575
Median Rent
$380,900
Median Home Value
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
View Realmo Analytics
Market
Vacancy Rate% for Retail in Memphis, TN
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Frequently Asked Questions
What type of property is this?
Grocery and convenience store - Long-term 10-year net lease with access to three major interstate routes.
Where is this grocery and convenience store located?
The property is located at 785 Union Ave Memphis, TN.
What is the asking price?
The asking price for this property is $5,900,000.
What are key features of this property?
This property features: 27,800‑square‑foot grocery store occupied by Aldi; Long‑term 10‑year net lease; 785 Union Ave, Memphis, TN 38103
