Rooming House Multifamily
For Sale
Contact for pricing
1037 FAXON AVE, Memphis, TN 38105
Built in 1912, the property is identified as a rooming house with single-family rental or resale conversion potential.
Property Size2,252 SF
Price / SF$88.81
Days on Market117
Property Features for 1037 FAXON AVE
General Information
Standard status
Active
Size
2,252 SF
Class
C
Property subtype
Multifamily
Building Details
Year Built
1912
Stories
2
Units
1
Listing Agency:
Hewgley Commercial Real Estate
Listed By:
Thomas Hewgley · License #AR SA00081367
Source:
Crexi
Added: May 7
Changed: Aug 30
Last Checked: Aug 30 at 1:12PM
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 Hewgley Commercial Real Estate
Investment Insights
Based on property information with market context.
Located at 1037 Faxon Ave in Memphis, Tennessee, this multifamily property is identified as a rooming house and was built in 1912. The property information also describes the asset as suitable for conversion back to a single-family rental or sale configuration.
Key Highlights
- Rooming house configuration
- Built in 1912
- Conversion option to single‑family rental or sale
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
$16,815
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
8.41%
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%
$336,300
$336.3K
Cap Rate 7%
$240,214
$240.2K
Cap Rate 9%
$186,833
$186.8K
Market Conditions
NOI Build-Up for 2,252 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
$32.7K $14.52/SF
− Vacancy
−$2.1K −$0.94/SF
EGI
$30.6K $13.58/SF
− OpEx
−$13.8K −$6.11/SF
NOI
$16.8K $7.47/SF
Area
Memphis, TN
Vacancy
6.50%
Lease Rate
$14.52 /SF/Yr
Expense Ratio
45.00%
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%
$336,300
Cap Rate 7%
$240,214
Cap Rate 9%
$186,833
Alternative Uses
Best Use
Apartment 5plus
$240.2K
$210.2K – $280.3K
NOI $16,815 @ 7.0% cap · market cap 8.41%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$665.6K
$582.4K – $776.5K
NOI $46,589 @ 7.0% cap · market cap 23.29%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
592
Businesses Nearby
Explore this area
Business Placement
Demographics for 38105, TN
6,232
Population
4,145
Households
1.5
Avg Household Size
39
Median Age
22%
College-Educated
81%
High-School Grad
1.7 sq mi
ZIP Area
3,666
Density / Sq Mi
$29,316
Median Household Income
$34,969
Median Earnings
$928
Median Rent
$75,400
Median Home Value
Market
Vacancy Rate% for Multifamily in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Multifamily property - Built in 1912, the property is identified as a rooming house with single-family rental or resale conversion potential.
Where is this multifamily property located?
The property is located at 1037 FAXON AVE Memphis, TN.
What is the asking price?
The asking price for this property is $200,000.
What are key features of this property?
This property features: Rooming house configuration; Built in 1912; Conversion option to single‑family rental or sale
