Underground Bomb Shelter For
For Sale
$1,350,000
8865 Griffith Rd, Nashville, TN 37221
Unique underground structure suitable for various adaptive re-use purposes.
Property Size8,500 SF
Lot Size4.76 Acres
Price / SF$158.82
Days on Market1196
Property Features for 8865 Griffith Rd
General Information
Standard status
Active
Size
8,500 SF
Lot size
4.76 Acres
Property subtype
Commercial
Building Details
Year Built
1952
Listing Agency:
SIMS COMMERCIAL REAL ESTATE INC
(615) 425-3600
Listed By:
MICHAEL SIMS · License #471008215
Source:
Corcoran
Added: May 2, 2023
Changed: Aug 8
Last Checked: Aug 9 at 7:47AM
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 SIMS COMMERCIAL REAL ESTATE INC
Investment Insights
Based on property information with market context.
This unique property features a bomb shelter constructed with 2-foot thick concrete walls. The majority of the building is located underground, with the underground portion being larger than the above-ground section. According to tax records, the above-ground portion is reflected. This property presents opportunities for adaptive re-use, including a tourist attraction, secure storage facility, wine warehousing, or recording studio. Owner financing is potentially available for qualified purchasers. The property is located in Nashville, TN.
Key Highlights
- Underground bomb shelter with 2' thick concrete walls offering unparalleled security and privacy.
- Potential for adaptive re‑use as a tourist attraction, secure storage, wine warehousing, or recording studio.
- Majority of the building is underground, offering unique space and environmental control.
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
$66,474
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
4.92%
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%
$1,329,480
$1.3M
Cap Rate 7%
$949,629
$949.6K
Cap Rate 9%
$738,600
$738.6K
Market Conditions
NOI Build-Up for 8,500 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
$81.3K $9.57/SF
− Vacancy
−$3.1K −$0.37/SF
EGI
$78.2K $9.20/SF
− OpEx
−$11.7K −$1.38/SF
NOI
$66.5K $7.82/SF
Area
ZIP 37221
Vacancy
3.86%
Lease Rate
$9.57 /SF/Yr
Expense Ratio
15.00%
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%
$1,329,480
Cap Rate 7%
$949,629
Cap Rate 9%
$738,600
Alternative Uses
Best Use
Warehouse
$949.6K
$830.9K – $1.11M
NOI $66,474 @ 7.0% cap · market cap 4.92%
Second Best
Industrial
$782.1K
$684.3K – $912.4K
NOI $54,744 @ 7.0% cap · market cap 4.06%
Theoretical Best
Office A
$2.86M
$2.50M – $3.33M
NOI $199,920 @ 7.0% cap · market cap 14.81%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
3
Businesses Nearby
Explore this area
Business Placement
Demographics for 37221, TN
42,312
Population
20,323
Households
2.1
Avg Household Size
39
Median Age
62%
College-Educated
97%
High-School Grad
49.3 sq mi
ZIP Area
858
Density / Sq Mi
$99,083
Median Household Income
$58,191
Median Earnings
$1,778
Median Rent
$432,900
Median Home Value
Market
Vacancy Rate% for Industrial in Nashville, TN
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Specialty property - Unique underground structure suitable for various adaptive re-use purposes.
Where is this specialty property located?
The property is located at 8865 Griffith Rd Nashville, TN.
What is the asking price?
The asking price for this property is $1,350,000.
What are key features of this property?
This property features: Underground bomb shelter with **2' thick concrete walls offering unparalleled security and privacy.**; Potential for adaptive re‑use as a tourist attraction, secure storage, wine warehousing, or recording studio.; Majority of the building is underground, offering unique space and environmental control.
