Retail Space with Surface
For Sale
$2,350,000
853 Merrimon Ave, Asheville, NC 28804
Two parcels provide a flexible retail setting with surface parking and zoning supporting several commercial uses.
Property Size8,975 SF
Lot Size0.78 Acres
Price / SF$261.84
Days on Market12
Property Features for 853 Merrimon Ave
General Information
Standard status
Active
Size
8,975 SF
Lot size
0.78 Acres
Zoning
CBII and RM
Property Condition
Severity
Repairs Needed
Evidence
some renovation
Site & Location
Road Frontage
130 ft
Traffic Count
17,500 vehicles/day
Road Access
Yes
Additional Details
Cap Rate
7.5%
Building Details
Year Built
1957
Listing Agency:
Tessier Associates
(828) 460-9529
Listed By:
Bill Steigerwald · License #290959
Source:
Lewisandkirk
Added: Aug 17
Changed: Aug 28
Last Checked: Aug 28 at 6:27AM
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 Tessier Associates
Investment Insights
Based on property information with market context.
This retail property includes an 8,975-square-foot building constructed in 1957, together with a second parcel that expands the site to 0.78 acres. The property offers surface parking, including an additional 0.31-acre lot behind the building, and 130 feet of frontage along Merrimon Avenue. Redevelopment or renovation is identified as a potential path for the combined parcels.
Located in North Asheville, the property records approximately 17,500 cars per day along the Merrimon corridor. Downtown Asheville is one mile away, while UNC-Asheville is within one-half mile. Zoning includes CBII and RM, with stated use potential for retail, food and beverage, brewing, professional office, medical office, fitness, and art studios. The surrounding area includes 5,500 residences within one-half mile.
Located in North Asheville, the property records approximately 17,500 cars per day along the Merrimon corridor. Downtown Asheville is one mile away, while UNC-Asheville is within one-half mile. Zoning includes CBII and RM, with stated use potential for retail, food and beverage, brewing, professional office, medical office, fitness, and art studios. The surrounding area includes 5,500 residences within one-half mile.
Key Highlights
- 8,975‑square‑foot retail building constructed in 1957
- Two parcels totaling 0.78 acres with 130 feet of Merrimon Avenue frontage
- Approximately 17,500 cars per day along the Merrimon corridor
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
$105,234
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
4.48%
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%
$2,104,680
$2.1M
Cap Rate 7%
$1,503,343
$1.5M
Cap Rate 9%
$1,169,267
$1.2M
Market Conditions
NOI Build-Up for 8,975 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
$152.9K $17.04/SF
− Vacancy
−$2.6K −$0.29/SF
EGI
$150.3K $16.75/SF
− OpEx
−$45.1K −$5.03/SF
NOI
$105.2K $11.73/SF
Area
Buncombe County, NC
Vacancy
1.70%
Lease Rate
$17.04 /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%
$2,104,680
Cap Rate 7%
$1,503,343
Cap Rate 9%
$1,169,267
Alternative Uses
Best Use
Retail
$1.50M
$1.32M – $1.75M
NOI $105,234 @ 7.0% cap · market cap 4.48%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$2.84M
$2.48M – $3.31M
NOI $198,661 @ 7.0% cap · market cap 8.45%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
17,500 VPD
Traffic count
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
734
Businesses Nearby
139k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Groceries 39%
Dining 28%
Shops & Services 24%
Home Improvements & Furnishings 9%
Ingles
Groceries
34,854 visits/mo
0.3 miles
The Fresh Market
Groceries
19,343 visits/mo
0.2 miles
McDonald's
Dining
16,533 visits/mo
0.2 miles
Young Ace Hardware Of North Asheville
Home Improvements & Furnishings
9,989 visits/mo
0.1 miles
Petco
Shops & Services
8,340 visits/mo
0.3 miles
Demographics for 28804, NC
23,964
Population
11,716
Households
2
Avg Household Size
44
Median Age
60%
College-Educated
93%
High-School Grad
28.7 sq mi
ZIP Area
835
Density / Sq Mi
$79,709
Median Household Income
$37,169
Median Earnings
$1,399
Median Rent
$528,500
Median Home Value
Market
Vacancy Rate% for Retail in South region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Retail space - Two parcels provide a flexible retail setting with surface parking and zoning supporting several commercial uses.
Where is this retail space located?
The property is located at 853 Merrimon Ave Asheville, NC.
What is the asking price?
The asking price for this property is $2,350,000.
What are key features of this property?
This property features: 8,975‑square‑foot retail building constructed in 1957; Two parcels totaling 0.78 acres with 130 feet of Merrimon Avenue frontage; Approximately 17,500 cars per day along the Merrimon corridor
