High-Traffic Retail
For Sale
Contact for pricing
2804 Frayser Blvd, Memphis, TN 38127
4,811 SF building on 0.93 acres in high-traffic area.
Property Size4,811 SF
Lot Size0.93 Acres
Price / SF$140.30
Days on Market1058
Property Features for 2804 Frayser Blvd
General Information
Standard status
Active
Size
4,811 SF
Lot size
0.93 Acres
Property subtype
Retail
Zoning
CMU-1
Building Details
Year Built
1974
Listing Agency:
ADARO REALTY
Listed By:
Mika Montes · License #350752
Source:
Crexi
Added: Sep 20, 2023
Changed: Aug 12
Last Checked: Aug 12 at 9:56AM
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 ADARO REALTY
Investment Insights
Based on property information with market context.
Located in a high-traffic area within walking distance of Nike and Amazon, this property offers a 4,811 square-foot building situated on approximately 0.93 acres of land with ample parking. The property includes all current light fixtures, window treatments, equipment, appliances, and furnishings and is fully operational. Formerly used as a restaurant and party venue, the property is suitable for many uses.
Key Highlights
- High‑traffic location within walking distance of Nike and Amazon.
- Large building (almost 5,000 sq ft) on a large lot (almost .93 acres) with ample parking.
- Fully operational and suitable for many uses.
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
$56,375
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%
$1,127,500
$1.1M
Cap Rate 7%
$805,357
$805.4K
Cap Rate 9%
$626,389
$626.4K
Market Conditions
NOI Build-Up for 4,811 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
$86.6K $18.00/SF
− Vacancy
−$6.1K −$1.26/SF
EGI
$80.5K $16.74/SF
− OpEx
−$24.2K −$5.02/SF
NOI
$56.4K $11.72/SF
Area
ZIP 38127
Vacancy
7.00%
Lease Rate
$18.00 /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%
$1,127,500
Cap Rate 7%
$805,357
Cap Rate 9%
$626,389
Alternative Uses
Best Use
Retail
$805.4K
$704.7K – $939.6K
NOI $56,375 @ 7.0% cap · market cap 8.35%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.28M
$1.12M – $1.49M
NOI $89,369 @ 7.0% cap · market cap 13.24%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
200
Businesses Nearby
89k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 45%
Dining 28%
Groceries 15%
Apparel 11%
McDonald's
Dining
23,926 visits/mo
0.3 miles
Kroger Fuel Center
Shops & Services
17,019 visits/mo
0.4 miles
Kroger
Groceries
13,107 visits/mo
0.4 miles
Dollar General
Shops & Services
7,441 visits/mo
0.2 miles
Rainbow
Apparel
7,428 visits/mo
0.5 miles
Demographics for 38127, TN
40,679
Population
17,560
Households
2.3
Avg Household Size
33
Median Age
11%
College-Educated
83%
High-School Grad
37.8 sq mi
ZIP Area
1,076
Density / Sq Mi
$37,768
Median Household Income
$31,790
Median Earnings
$1,104
Median Rent
$82,500
Median Home Value
Market
Vacancy Rate% for Retail in Memphis, TN
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Retail space - 4,811 SF building on 0.93 acres in high-traffic area.
Where is this retail space located?
The property is located at 2804 Frayser Blvd Memphis, TN.
What is the asking price?
The asking price for this property is $675,000.
What are key features of this property?
This property features: High‑traffic location within walking distance of Nike and Amazon.; Large building (almost 5,000 sq ft) on a large lot (almost .93 acres) with ample parking.; Fully operational and suitable for many uses.
