Downtown Hickory Investment
For Sale
Contact for pricing
118 3rd Ave NW, Hickory, NC 28601
Mixed-use building with apartments and commercial space in downtown Hickory.
Property Size4,436 SF
Price / SF$135.03
Days on Market771
Property Features for 118 3rd Ave NW
General Information
Standard status
Active
Size
4,436 SF
Property subtype
Retail, Office
Zoning
OI
Occupancy
66%
Investment Type
Value Add
Building Details
Year Built
1924
Listing Agency:
Commercial First
(828) 322-8022
Listed By:
Jenny Eckard · License #NC 271955
Source:
Crexi
Added: Jul 17, 2024
Changed: Aug 14
Last Checked: Aug 25 at 11:25AM
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 Commercial First
Investment Insights
Based on property information with market context.
This mixed-use property is located in Downtown Hickory and presents an investment opportunity. The building includes two newly remodeled upstairs apartments and a commercial office space that is currently leased on the main floor. The bottom level has been remodeled and is ready to be leased, offering value-add income potential. There is a fourth floor that could be converted into another apartment, if desired. Additional storage space with power is attached, which could potentially be converted into a studio apartment. The property features parking and is within walking distance of Union Square in Downtown Hickory. The current revenue is $5,025 per month, with the potential to exceed $8,000 per month. The property size is 4,436 square feet.
Key Highlights
- High Income Potential: Current revenue $5,025/month with potential to exceed $8,000/month.
- Prime Location: Walking distance to Union Square in Downtown Hickory.
- Multiple Income Streams: Features two remodeled apartments and a leased commercial office space.
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
$44,915
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
7.50%
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%
$898,300
$898.3K
Cap Rate 7%
$641,643
$641.6K
Cap Rate 9%
$499,056
$499.1K
Market Conditions
NOI Build-Up for 4,436 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
$79.8K $18.00/SF
− Vacancy
−$8.0K −$1.80/SF
EGI
$71.9K $16.20/SF
− OpEx
−$26.9K −$6.07/SF
NOI
$44.9K $10.13/SF
Area
Catawba County, NC
Vacancy
10.00%
Lease Rate
$18.00 /SF/Yr
Expense Ratio
37.50%
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%
$898,300
Cap Rate 7%
$641,643
Cap Rate 9%
$499,056
Alternative Uses
Best Use
Mixed Use
$641.6K
$561.4K – $748.6K
NOI $44,915 @ 7.0% cap · market cap 7.50%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.30M
$1.13M – $1.51M
NOI $90,707 @ 7.0% cap · market cap 15.14%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,658
Businesses Nearby
Explore this area
Business Placement
Demographics for 28601, NC
53,973
Population
23,400
Households
2.3
Avg Household Size
42
Median Age
35%
College-Educated
90%
High-School Grad
47.1 sq mi
ZIP Area
1,146
Density / Sq Mi
$67,839
Median Household Income
$41,697
Median Earnings
$951
Median Rent
$236,100
Median Home Value
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Mixed-use property - Mixed-use building with apartments and commercial space in downtown Hickory.
Where is this mixed-use property located?
The property is located at 118 3rd Ave NW Hickory, NC.
What is the asking price?
The asking price for this property is $599,000.
What are key features of this property?
This property features: High Income Potential: Current revenue $5,025/month with potential to exceed $8,000/month.; Prime Location: Walking distance to Union Square in Downtown Hickory.; Multiple Income Streams: Features two remodeled apartments and a leased commercial office space.
