McKeel's Auto Service
For Sale
Contact for pricing
862 BARTLETT RD, Memphis, TN 38122
The property carries CMU-3 zoning and dates to 1977.
Property Size3,030 SF
Price / SF$148.51
Days on Market62
Property Features for 862 BARTLETT RD
General Information
Standard status
Active
Size
3,030 SF
Total Parking Spaces
15
Property subtype
Retail, Business for Sale
Zoning
CMU-3
Occupancy
100%
Lease Type
Gross
Net Operating Income
$108,000
Additional Details
Business Included
Yes
Building Details
Year Built
1977
Year Renovated
2005
Buildings
2
Stories
1
Units
1
Tenancy
Single
Listing Agency:
901, REALTORS
Listed By:
Pablo Pereyra · License #TN 264252 MS 23667
Source:
Crexi
Added: Jul 1
Changed: Aug 30
Last Checked: Aug 30 at 8:59AM
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 901, REALTORS
Investment Insights
Based on property information with market context.
McKeel's Auto Service Shop is an automotive service property paired with the associated real estate. The building was constructed in 1977 and is identified under CMU-3 zoning.
The property is located at 862 Bartlett Rd in Memphis, Tennessee, within ZIP code 38122. The offering combines the mechanic shop business with the underlying real estate.
The property is located at 862 Bartlett Rd in Memphis, Tennessee, within ZIP code 38122. The offering combines the mechanic shop business with the underlying real estate.
Key Highlights
- Automotive service property with associated business and real estate
- CMU‑3 zoning
- Building constructed in 1977
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
$30,805
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
6.85%
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%
$616,100
$616.1K
Cap Rate 7%
$440,071
$440.1K
Cap Rate 9%
$342,278
$342.3K
Market Conditions
NOI Build-Up for 3,030 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
$48.4K $15.96/SF
− Vacancy
−$4.4K −$1.44/SF
EGI
$44.0K $14.52/SF
− OpEx
−$13.2K −$4.36/SF
NOI
$30.8K $10.17/SF
Area
Memphis, TN
Vacancy
9.00%
Lease Rate
$15.96 /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%
$616,100
Cap Rate 7%
$440,071
Cap Rate 9%
$342,278
Alternative Uses
Best Use
Industrial
$440.1K
$385.1K – $513.4K
NOI $30,805 @ 7.0% cap · market cap 6.85%
Second Best
Retail
$431.8K
$377.8K – $503.7K
NOI $30,224 @ 7.0% cap · market cap 6.72%
Theoretical Best
Office A
$895.5K
$783.6K – $1.04M
NOI $62,685 @ 7.0% cap · market cap 13.93%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Turnkey business
Opportunity
Location Intelligence
Trade Area within ½ mile
487
Businesses Nearby
129k
Monthly Visits Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 41%
Home Improvements & Furnishings 33%
Dining 14%
Electronics 6%
At Home
Home Improvements & Furnishings
21,974 visits/mo
0.4 miles
Bargain Hunt
Shops & Services
18,570 visits/mo
0.1 miles
McDonald's
Dining
16,734 visits/mo
0.2 miles
Dollar Tree
Shops & Services
14,371 visits/mo
0.2 miles
Exxon
Shops & Services
13,447 visits/mo
0.2 miles
Demographics for 38122, TN
26,432
Population
10,201
Households
2.6
Avg Household Size
33
Median Age
22%
College-Educated
74%
High-School Grad
6.8 sq mi
ZIP Area
3,887
Density / Sq Mi
$45,456
Median Household Income
$32,760
Median Earnings
$1,127
Median Rent
$108,200
Median Home Value
Market
Vacancy Rate% for Retail in Memphis, TN
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
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- BARNEY'S AUTO SERVICE — Bell Plaza Shopping Center, 695 N Mendenhall Rd, Memphis, TN 38122
- Memphis Wrecker — 5005 Summer Ave, Memphis, TN 38122
- Your Car Details — 5005 Summer Ave, Memphis, TN 38122
Frequently Asked Questions
What type of property is this?
Auto shop - The property carries CMU-3 zoning and dates to 1977.
Where is this auto shop located?
The property is located at 862 BARTLETT RD Memphis, TN.
What is the asking price?
The asking price for this property is $450,000.
What are key features of this property?
This property features: Automotive service property with associated business and real estate; CMU‑3 zoning; Building constructed in 1977
