Mixed-Use Property with Highway
For Sale
$425,000
25263 U.S 127, Dunlap, TN 37327
Residential Income, Dunlap, TN
Property Size1,500 SF
Lot Size2.18 Acres
Price / SF$283.33
Days on Market92
Property Features for 25263 U.S 127
General Information
Property type
Residential Multi Family
Property subtype
Single Family Residence
Bedrooms
1
Bathrooms
2
Full bathrooms
2
Rooms
Bedroom 1, Bathroom 1, Bathroom 2
Parking features
Driveway
Window features
Insulated Windows
Patio and Porch features
Porch
Interior features
Laminate Counters, Plumbed, Separate Shower
Exterior features
Rain Gutters
Appliances
Refrigerator, Microwave, Instant Hot Water, Free-Standing Refrigerator, Electric Water Heater
Lot features
Cleared, Few Trees, Views
Elementary school
Pikeville Elementary
Middle school
Bledsoe County Middle
High school
Bledsoe County High
Directions
Dunlap north hwy 127 property 5 miles on left.
Standard status
Active
APN
109
Size
1,500 SF
Lot size
2.18 Acres
Taxes and HOA fees
Tax Description
109 006.02, 014.00
Tax Annual Amount
1300
Legal Description
109 006.02, 014.00
Utilities
Utilities
Cable Available
Sewer type
Septic Tank
Heating system
Energy Star Qualified Equipment (Heating), Central, Ductless (Heating)
Cooling system
Ductless, Central Air
Water source
Public
Amenities
well
city water
220 electric
2 bathrooms
small kitchen
RV spot with full hookups
Building Details
Year built
2019
Floors in Building
1
Number of units
1
Flooring type
Linoleum, Concrete
Building materials
Metal Siding
Roof type
Metal
Architectural style
Ranch
Listing Agency:
Fall Creek Falls Realty LLC
(423) 554-4600
Listed By:
Greg C Barkley · License #00317039
(423) 763-8889
Added: Jun 2
Changed: Aug 22
Last Checked: Sep 1 at 10:06PM
MLS# 1535921
Copyright © 2026 Greater Chattanooga Association of REALTORS. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
This mixed-use property includes a 1,500-square-foot building on 2.18 acres, with an office currently configured for real estate use. The improvements include two bathrooms, a small kitchen with appliances, laminate counters, separate shower plumbing, central and ductless HVAC, metal siding, and a metal roof. Four outbuildings are connected to city water, and the property includes an RV site with full hookups. Electrical service includes 220-volt capacity, while the primary water source is public and wastewater is served by a septic tank.
The property has frontage along U.S. 127, with additional Hwy 28 frontage at the rear. A driveway provides on-site access, and the building was constructed in 2019. The site also includes a porch, rain gutters, cable availability, a refrigerator, microwave, instant hot water, and an electric water heater.
The property has frontage along U.S. 127, with additional Hwy 28 frontage at the rear. A driveway provides on-site access, and the building was constructed in 2019. The site also includes a porch, rain gutters, cable availability, a refrigerator, microwave, instant hot water, and an electric water heater.
Key Highlights
- 2.18‑acre mixed‑use property with a 1,500‑square‑foot building
- Frontage along U.S. 127 with additional Hwy 28 frontage at the rear
- Four outbuildings connected to city water
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
$17,213
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
4.05%
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%
$344,260
$344.3K
Cap Rate 7%
$245,900
$245.9K
Cap Rate 9%
$191,256
$191.3K
Market Conditions
NOI Build-Up for 1,500 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
$27.0K $18.00/SF
− Vacancy
−$4.1K −$2.70/SF
EGI
$23.0K $15.30/SF
− OpEx
−$5.7K −$3.82/SF
NOI
$17.2K $11.48/SF
Area
Sequatchie County, TN
Vacancy
15.00%
Lease Rate
$18.00 /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%
$344,260
Cap Rate 7%
$245,900
Cap Rate 9%
$191,256
Alternative Uses
Best Use
Office B
$245.9K
$215.2K – $286.9K
NOI $17,213 @ 7.0% cap · market cap 4.05%
Second Best
Mixed Use
$236.6K
$207.0K – $276.0K
NOI $16,560 @ 7.0% cap · market cap 3.90%
Theoretical Best
Office A
$331.3K
$289.9K – $386.5K
NOI $23,190 @ 7.0% cap · market cap 5.46%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
Yes
Highway access
Yes
Paved road access
Yes
Utilities to site
Location Intelligence
Trade Area within ½ mile
10
Businesses Nearby
Explore this area
Business Placement
Demographics for 37327, TN
12,412
Population
5,319
Households
2.3
Avg Household Size
43
Median Age
18%
College-Educated
81%
High-School Grad
191.4 sq mi
ZIP Area
65
Density / Sq Mi
$51,862
Median Household Income
$28,990
Median Earnings
$843
Median Rent
$217,600
Median Home Value
Market
Vacancy Rate% for Office in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Mixed-use property - Office improvements, multiple outbuildings, and an RV site with full hookups occupy this versatile commercial property.
Where is this mixed-use property located?
The property is located at 25263 U.S 127 Dunlap, TN.
What is the asking price?
The asking price for this property is $425,000.
What are key features of this property?
This property features: 2.18‑acre mixed‑use property with a 1,500‑square‑foot building; Frontage along U.S. 127 with additional Hwy 28 frontage at the rear; Four outbuildings connected to city water
