Individually Metered Apartment
For Sale
$5,725,000
117 Cedarwood Dr, Lebanon, TN 37087
40-unit apartment community built in 1970 with one- and two-bedroom units and individually metered utilities.
Property Size29,470 SF
Days on Market97
Property Features for 117 Cedarwood Dr
General Information
Standard status
Active
Size
29,470 SF
Property subtype
Multifamily
Additional Details
Cap Rate
6.07%
Multifamily Units
40
Amenities
$585,000 spent on capital improvements over the last 36 months. Improvements include new windows, unit renovations, exterior painting, exterior lighting, new signage, repaving, and landscaping
17 of 40 units have been renovated, allowing the opportunity to capitalize on proven rent premiums
Rents are currently $145 below the market rate, offering immediate value-add potential
Ample green space throughout the property provides the opportunity to further enhance the community through the addition of outdoor amenities and tenant gathering areas
Individually metered for water and electricity
All units are equipped with washer and dryer connections
Building Details
Building Size
29,470 SF
Year Built
1970
Units
40
Listing Agency:
Nashville Office
Listed By:
Harrison Johnson · License #License(s): TN: 370379
(615) 997-2893
Source:
Marcusmillichap
Added: Jun 1
Changed: Aug 8
Last Checked: Sep 5 at 3:52AM
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 Nashville Office
Investment Insights
Based on property information with market context.
The Reserve at Lebanon is a 40-unit multifamily community built in 1970 featuring a mix of one- and two-bedroom floorplans. Ownership has invested approximately $585,000 over the past three years, including exterior improvements, unit renovations, and major system upgrades. Improvements include the replacement of over 70% of HVAC units and a roof replacement completed in 2018, with 17 units already renovated. The property is individually metered.
Located in the growing Lebanon corridor within commuting distance to Nashville, the community offers in-place occupancy with rents currently below market, creating an opportunity to continue interior upgrades.
Offers must be submitted in the form of a non-binding Letter of Intent detailing key terms and conditions, and the purchase terms require all cash to be paid at closing.
Located in the growing Lebanon corridor within commuting distance to Nashville, the community offers in-place occupancy with rents currently below market, creating an opportunity to continue interior upgrades.
Offers must be submitted in the form of a non-binding Letter of Intent detailing key terms and conditions, and the purchase terms require all cash to be paid at closing.
Key Highlights
- 40‑unit multifamily community built in 1970 with a mix of one- and two‑bedroom floorplans
- Strong in‑place occupancy and rents currently below market, with 17 units already renovated
- Ownership invested about $585,000 over the past three years, including exterior improvements and major system upgrades
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
$322,679
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
5.64%
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%
$6,453,580
$6.5M
Cap Rate 7%
$4,609,700
$4.6M
Cap Rate 9%
$3,585,322
$3.6M
Market Conditions
NOI Build-Up for 29,470 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
$618.9K $21.00/SF
− Vacancy
−$32.2K −$1.09/SF
EGI
$586.7K $19.91/SF
− OpEx
−$264.0K −$8.96/SF
NOI
$322.7K $10.95/SF
Area
Wilson County, TN
Vacancy
5.20%
Lease Rate
$21.00 /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%
$6,453,580
Cap Rate 7%
$4,609,700
Cap Rate 9%
$3,585,322
Alternative Uses
Best Use
Apartment 5plus
$4.61M
$4.03M – $5.38M
NOI $322,679 @ 7.0% cap · market cap 5.64%
Second Best
—
—
no second resolved use
Theoretical Best
Warehouse
$38.64M
$33.81M – $45.09M
NOI $2,705,121 @ 7.0% cap · market cap 47.25%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
40
Residential units
Location Intelligence
Trade Area within ½ mile
358
Businesses Nearby
Explore this area
Business Placement
Demographics for 37087, TN
51,658
Population
21,800
Households
2.4
Avg Household Size
39
Median Age
29%
College-Educated
92%
High-School Grad
164.9 sq mi
ZIP Area
313
Density / Sq Mi
$80,978
Median Household Income
$43,253
Median Earnings
$1,134
Median Rent
$359,900
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?
Apartment building - 40-unit apartment community built in 1970 with one- and two-bedroom units and individually metered utilities.
Where is this apartment building located?
The property is located at 117 Cedarwood Dr Lebanon, TN.
What is the asking price?
The asking price for this property is $5,725,000.
What are key features of this property?
This property features: 40‑unit multifamily community built in 1970 with a mix of one- and two‑bedroom floorplans; Strong in‑place occupancy and rents currently below market, with 17 units already renovated; Ownership invested about $585,000 over the past three years, including exterior improvements and major system upgrades
