Restaurant Building with Commercial
For Sale
$299,900
850 Riverside Dr, Jackson, TN 38301
The site includes a second building, a substantial parking area, and two ponds.
Property Size2,516 SF
Lot Size8.90 Acres
Price / SF$119.20
Days on Market19
Property Features for 850 Riverside Dr
General Information
Standard status
Active
Size
2,516 SF
Lot size
8.90 Acres
Property subtype
Residential Income
Additional Details
Road Access
Yes
Taxes and HOA fees
Annual Taxes
$831
Amenities
covered deck
ponds
Building Details
Buildings
2
Listing Agency:
Renshaw Company, REALTORS
(731) 664-2105
Listed By:
Seth Rodgers · License #370060
(731) 618-7925
Source:
Exprealty
Added: Sep 8
Changed: Sep 24
Last Checked: Sep 24 at 2:52PM
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 Renshaw Company, REALTORS
Investment Insights
Based on property information with market context.
This restaurant property occupies approximately 8.9 acres outside Jackson city limits. The main building has a full-scale kitchen with an industrial exhaust fan, three bathrooms, a broad dining and lounge area, a separate side room, and a covered rear deck. A second building provides additional space for storage, equipment, or related functions.
Located at 850 Riverside Dr in Jackson, the property includes a large parking lot and two ponds. Its location outside the city limits places it in a county setting without city property taxes.
Located at 850 Riverside Dr in Jackson, the property includes a large parking lot and two ponds. Its location outside the city limits places it in a county setting without city property taxes.
Key Highlights
- Approximately 8.9 acres outside Jackson city limits
- Full‑scale kitchen with industrial exhaust fan
- Three bathrooms, dining and lounge area, and separate side room
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
$10,395
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
3.47%
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%
$207,900
$207.9K
Cap Rate 7%
$148,500
$148.5K
Cap Rate 9%
$115,500
$115.5K
Market Conditions
NOI Build-Up for 2,516 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
$15.2K $6.06/SF
− Vacancy
−$396 −$0.16/SF
EGI
$14.9K $5.90/SF
− OpEx
−$4.5K −$1.77/SF
NOI
$10.4K $4.13/SF
Area
Madison County, TN
Vacancy
2.60%
Lease Rate
$6.06 /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%
$207,900
Cap Rate 7%
$148,500
Cap Rate 9%
$115,500
Alternative Uses
Best Use
Specialty Retail
$472.1K
$413.1K – $550.8K
NOI $33,049 @ 7.0% cap · market cap 11.02%
Second Best
Industrial
$148.5K
$129.9K – $173.3K
NOI $10,395 @ 7.0% cap · market cap 3.47%
Theoretical Best
Office A
$518.1K
$453.3K – $604.5K
NOI $36,267 @ 7.0% cap · market cap 12.09%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Lease Details
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
9
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 38301, TN
34,170
Population
15,769
Households
2.2
Avg Household Size
37
Median Age
16%
College-Educated
85%
High-School Grad
150.9 sq mi
ZIP Area
226
Density / Sq Mi
$40,062
Median Household Income
$28,542
Median Earnings
$958
Median Rent
$119,400
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 South region
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Frequently Asked Questions
What type of property is this?
Restaurant - The site includes a second building, a substantial parking area, and two ponds.
Where is this restaurant located?
The property is located at 850 Riverside Dr Jackson, TN.
What is the asking price?
The asking price for this property is $299,900.
What are key features of this property?
This property features: Approximately 8.9 acres outside Jackson city limits; Full‑scale kitchen with industrial exhaust fan; Three bathrooms, dining and lounge area, and separate side room
