Restaurant Property with
For Sale
$299,900
850 Riverside Drive, Jackson, TN 38301
Residential Income, Jackson, TN
Property Size2,516 SF
Lot Size8.90 Acres
Price / SF$119.20
Days on Market9
Property Features for 850 Riverside Drive
General Information
Property type
Residential Multi Family
Property subtype
Other
Zoning description
Commercial
Parking
15
Parking features
Open
Window features
Display Window(s), Aluminum Frames
Patio and Porch features
Porch, Deck
Appliances
Exhaust Fan
Lot features
Agricultural, Level, Wooded
Elementary school district
Jackson Madison Consolidated District
Standard status
Active
APN
088 070.00
Size
2,516 SF
Lot size
8.90 Acres
Taxes and HOA fees
Tax Annual Amount
832
Utilities
Utilities
Phone Available
Sewer type
Public Sewer
Heating system
Central
Cooling system
Central Air
Water source
Public
Water front features
Pond
Water front
1
Amenities
covered deck
ponds
Building Details
Year built
1968
Floors in Building
1
Number of units
3
Flooring type
Concrete
Building materials
Brick, Concrete
Roof type
Flat, Metal, Rubber, Mixed
Additional Structures
Storage
Listing Agency:
Renshaw Company, REALTORS(R)
(731) 664-2105
Listed By:
Seth Rodgers · License #370060
(731) 618-7925
Added: Sep 8
Changed: Sep 16
Last Checked: Sep 16 at 3:06AM
MLS# 2604367
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 restaurant-oriented property sits on approximately 8.9 acres and includes a commercial building with a full-scale kitchen, industrial exhaust fan, three bathrooms, a large dining and lounging area, and an additional side room. A covered back deck expands the usable area, while a separate building provides space for storage, smokers, or equipment. The improvements were built in 1968 and feature brick and concrete construction, concrete flooring, central heating and central air.
The property is located on Riverside Drive outside the Jackson city limits. Site features include a large open parking area and two ponds. Public water and public sewer serve the property, and the building has a flat, metal, rubber, and mixed roof system. The existing configuration is suited to restaurant and food-service operations, with additional room for retail or other approved commercial uses.
The property is located on Riverside Drive outside the Jackson city limits. Site features include a large open parking area and two ponds. Public water and public sewer serve the property, and the building has a flat, metal, rubber, and mixed roof system. The existing configuration is suited to restaurant and food-service operations, with additional room for retail or other approved commercial uses.
Key Highlights
- Approximately 8.9 acres outside the Jackson city limits
- 3,424 SF commercial building with full‑scale kitchen and industrial exhaust fan
- Large covered back deck, dining/lounge area, side room, and 3 bathrooms
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
$25,705
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
8.57%
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%
$514,100
$514.1K
Cap Rate 7%
$367,214
$367.2K
Cap Rate 9%
$285,611
$285.6K
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
$37.7K $15.00/SF
− Vacancy
−$1.0K −$0.41/SF
EGI
$36.7K $14.59/SF
− OpEx
−$11.0K −$4.38/SF
NOI
$25.7K $10.22/SF
Area
Madison County, TN
Vacancy
2.70%
Lease Rate
$15.00 /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%
$514,100
Cap Rate 7%
$367,214
Cap Rate 9%
$285,611
Alternative Uses
Best Use
Specialty Retail
$472.1K
$413.1K – $550.8K
NOI $33,049 @ 7.0% cap · market cap 11.02%
Second Best
Retail
$367.2K
$321.3K – $428.4K
NOI $25,705 @ 7.0% cap · market cap 8.57%
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?
Conventional restaurant - Includes a full-scale kitchen, industrial exhaust system, dining space, and a covered deck.
Where is this conventional restaurant located?
The property is located at 850 Riverside Drive 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 the Jackson city limits; 3,424 SF commercial building with full‑scale kitchen and industrial exhaust fan; Large covered back deck, dining/lounge area, side room, and 3 bathrooms
