Building Details

Year Built 1962

Listing Agency: RE/MAX Central Realty h***@gmail.com Show Phone

Listed By: H.R. Gallimore 336-626-5600 · License #197942

Source: Searchhomesinthetriad

Added: Jul 1 Changed: Aug 29 Last Checked: Aug 30 at 6:09PM

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Investment Insights

Based on property information with market context.

This established diner and restaurant property was built in 1962 and is located in Seagrove, North Carolina. The site includes a spacious parking area configured for straightforward entry and exit, supporting customer access and daily restaurant operations.

The property offers quick access to Highway 705, also known as Pottery Highway, along with Interstate 73/74. Several industrial businesses are located within one mile, adding nearby employment activity to the surrounding area.

Key Highlights

• Established diner and restaurant location in Seagrove
• Built in 1962
• Quick access to Highway 705, also known as Pottery Highway

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

$16,655

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

8.35%

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%

$333,100 $333.1K

Cap Rate 7%

$237,929 $237.9K

Cap Rate 9%

$185,056 $185.1K

Market Conditions

NOI Build-Up for 1,900 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

$22.8K $12.00/SF

− Vacancy

−$593 −$0.31/SF

EGI

$22.2K $11.69/SF

− OpEx

−$5.6K −$2.92/SF

NOI

$16.7K $8.77/SF

Area

Randolph County, NC

Vacancy

2.60%

Lease Rate

$12.00 /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%

$333,100

Cap Rate 7%

$237,929

Cap Rate 9%

$185,056

Alternative Uses

Best Use

Specialty Retail

$237.9K

$208.2K – $277.6K (±1% cap)

NOI $16,655 @ 7.0% cap · market cap 8.35%

Second Best

—

—

no second resolved use

Theoretical Best

Office A

$653.6K

$571.9K – $762.5K (±1% cap)

NOI $45,751 @ 7.0% cap · market cap 22.93%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Property Profile

Current Use

Breakfast & diners

Suggested Use

Top Pick Parking Lot & Garage HVAC Service Grocery & Convenience Store Pharmacy Hair Salon Nail Salon

Score = modeled unmet demand for each use within ~1 mi (higher = bigger opportunity). Zoning and permitted uses should be independently verified with local authorities.

Lease Details

Yes

Highway access

Yes

Paved road access

Location Intelligence

Trade Area within ½ mile

60

Businesses Nearby

Well-served

Demand for This Use

Explore this area Business Placement

Demographics for 27341, NC

5,235

Population

2,399

Households

2.2

Avg Household Size

44

Median Age

13%

College-Educated

87%

High-School Grad

95.7 sq mi

ZIP Area

55

Density / Sq Mi

$55,938

Median Household Income

$39,141

Median Earnings

$741

Median Rent

$155,300

Median Home Value

Market

Vacancy Rate% for Retail in South region

7% 2020

6.2% 2021

5.1% 2022

4.8% 2023

4.9% 2024

5.4% 2025

Questions? Ask Rey

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What type of property is this? Where is this breakfast & diners located? What is the asking price? Find similar properties ... What are key features of this property?

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Frequently Asked Questions

What type of property is this?

Breakfast & diner - Restaurant property with convenient regional highway connections, nearby industrial activity, and ample on-site parking.

Where is this breakfast & diner located?

The property is located at 8702 Us Highway 220 S Seagrove, NC.

What is the asking price?

The asking price for this property is $199,500.

What are key features of this property?

This property features: Established diner and restaurant location in Seagrove; Built in 1962; Quick access to Highway 705, also known as Pottery Highway