Shelby Dr & Faronia
For Sale
Contact for pricing
4636 Faronia Rd, Memphis, TN 38116
Retail investment opportunity at a bustling intersection in Memphis, TN.
Property Size14,305 SF
Lot Size2.05 Acres
Price / SF$139.81
Days on Market1059
Property Features for 4636 Faronia Rd
General Information
Standard status
Active
Size
14,305 SF
Lot size
2.05 Acres
Property subtype
Retail
Occupancy
85%
Investment Type
Value Add
Net Operating Income
$109,000
Building Details
Tenancy
Multi
Listing Agency:
Myers Commercial Real Estate
Listed By:
Melanie Myers Bland · License #TN 288335
Source:
Crexi
Added: Oct 9, 2023
Changed: Aug 14
Last Checked: Aug 30 at 4:02PM
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 Myers Commercial Real Estate
Investment Insights
Based on property information with market context.
This retail investment opportunity is located at the intersection of Shelby Dr and Faronia Rd in Memphis, TN 38116. The portfolio consists of two parcels totaling 2.05 acres and includes four commercial buildings. The property is suitable for an investor seeking value-add opportunities with short-term leases. Parcel A spans 1.06 acres and contains two buildings with a combined square footage of 9,865. Parcel B covers 0.99 acres and features two buildings totaling 4,440 square feet. The property has a net operating income of $109,000 with a 15% vacancy rate, offering holding income potential. The location is near retailers such as Starbucks and AutoZone. The property is located at a stoplight corner and could be converted into a gas station development site. Clean Phase I and II environmental reports are available from the seller.
Key Highlights
- Prime location at the intersection of Shelby Dr and Faronia Rd, suitable for gas station development.
- Portfolio includes two parcels totaling 2.05 acres with four commercial buildings.
- Opportunity for value‑add investment with short‑term leases.
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
$167,626
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
8.38%
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%
$3,352,520
$3.4M
Cap Rate 7%
$2,394,657
$2.4M
Cap Rate 9%
$1,862,511
$1.9M
Market Conditions
NOI Build-Up for 14,305 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
$257.5K $18.00/SF
− Vacancy
−$18.0K −$1.26/SF
EGI
$239.5K $16.74/SF
− OpEx
−$71.8K −$5.02/SF
NOI
$167.6K $11.72/SF
Area
ZIP 38116
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%
$3,352,520
Cap Rate 7%
$2,394,657
Cap Rate 9%
$1,862,511
Alternative Uses
Best Use
Retail
$2.39M
$2.10M – $2.79M
NOI $167,626 @ 7.0% cap · market cap 8.38%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$3.51M
$3.07M – $4.09M
NOI $245,652 @ 7.0% cap · market cap 12.28%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
738
Businesses Nearby
164k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 42%
Dining 28%
Groceries 27%
Electronics 2%
Kroger
Groceries
44,327 visits/mo
0.3 miles
Kroger Fuel Center
Shops & Services
17,696 visits/mo
0.3 miles
Starbucks
Dining
16,640 visits/mo
0.4 miles
Popeyes Louisiana Kitchen
Dining
15,907 visits/mo
0.3 miles
Regions Bank
Shops & Services
13,034 visits/mo
0.3 miles
Demographics for 38116, TN
39,107
Population
18,526
Households
2.1
Avg Household Size
35
Median Age
21%
College-Educated
88%
High-School Grad
19.6 sq mi
ZIP Area
1,995
Density / Sq Mi
$44,663
Median Household Income
$31,593
Median Earnings
$1,035
Median Rent
$125,800
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 - Retail investment opportunity at a bustling intersection in Memphis, TN.
Where is this retail space located?
The property is located at 4636 Faronia Rd Memphis, TN.
What is the asking price?
The asking price for this property is $2,000,000.
What are key features of this property?
This property features: Prime location at the intersection of Shelby Dr and Faronia Rd, suitable for gas station development.; Portfolio includes two parcels totaling 2.05 acres with four commercial buildings.; Opportunity for value‑add investment with short‑term leases.
