Premier Mixed-Use Asset in
For Sale
$12,250,000
110 Somerville Ave, Chattanooga, TN 37405
Newly built mixed-use property with office and multifamily spaces.
Property Size53,087 SF
Price / SF$230.75
Days on Market208
Property Features for 110 Somerville Ave
General Information
Standard status
Active
Size
53,087 SF
Property subtype
Mixed-Use
Building Details
Year Built
2023
Listing Agency:
(404) 313-3100
Listed By:
Bob Johnson · License #GA #182833
(404) 313-3100
Source:
Svn
Added: Jan 27
Changed: Jul 6
Last Checked: Aug 22 at 4:01AM
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 Bob Johnson
Investment Insights
Based on property information with market context.
Located in Chattanooga's vibrant Northshore neighborhood, this mixed-use property offers high-quality office and multifamily space. The office component, known as Somer Station, is 84% occupied by two long-term NNN tenants, with a 5,000 SF suite available. The Lofts at Somer Station include 22 fully furnished apartments and are 100% occupied. The property benefits from riverfront adjacency, on-site parking, and walkable access to national retailers, local boutiques, restaurants, and galleries. Nearby amenities include Publix, Whole Foods, Chipotle, Orangetheory Fitness, and Starbucks. The property is located at 110 Somerville Ave in the Northshore neighborhood in Chattanooga, TN. Situated along the riverfront, the Northshore neighborhood is the busiest retail area in Chattanooga’s downtown market and is easily accessible for residents in Riverview, Signal Mountain, Downtown and Hixson. The location has on site parking which is rare for the area. The property has a size of 53087 SF.
Key Highlights
- Newly built (2023) mixed‑use asset in Chattanooga's desirable Northshore neighborhood.
- High occupancy rates: 84% for office space (Somer Station) with long‑term NNN leases and 100% for multifamily (Lofts at Somer Station).
- 22 fully furnished apartments providing steady multifamily income.**
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
$609,173
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
4.97%
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%
$12,183,460
$12.2M
Cap Rate 7%
$8,702,471
$8.7M
Cap Rate 9%
$6,768,589
$6.8M
Market Conditions
NOI Build-Up for 53,087 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
$955.6K $18.00/SF
− Vacancy
−$143.3K −$2.70/SF
EGI
$812.2K $15.30/SF
− OpEx
−$203.1K −$3.82/SF
NOI
$609.2K $11.48/SF
Area
Chattanooga, 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%
$12,183,460
Cap Rate 7%
$8,702,471
Cap Rate 9%
$6,768,589
Alternative Uses
Best Use
Office B
$8.70M
$7.61M – $10.15M
NOI $609,173 @ 7.0% cap · market cap 4.97%
Second Best
Mixed Use
$8.37M
$7.33M – $9.77M
NOI $586,080 @ 7.0% cap · market cap 4.78%
Theoretical Best
Office A
$11.72M
$10.26M – $13.68M
NOI $820,717 @ 7.0% cap · market cap 6.70%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,383
Businesses Nearby
Explore this area
Business Placement
Demographics for 37405, TN
18,231
Population
9,959
Households
1.8
Avg Household Size
36
Median Age
53%
College-Educated
92%
High-School Grad
54.3 sq mi
ZIP Area
336
Density / Sq Mi
$77,850
Median Household Income
$51,748
Median Earnings
$1,276
Median Rent
$416,900
Median Home Value
Market
Vacancy Rate% for Office in South region
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 - Newly built mixed-use property with office and multifamily spaces.
Where is this mixed-use property located?
The property is located at 110 Somerville Ave Chattanooga, TN.
What is the asking price?
The asking price for this property is $12,250,000.
What are key features of this property?
This property features: Newly built (2023) mixed‑use asset in Chattanooga's desirable Northshore neighborhood.; High occupancy rates: 84% for office space (Somer Station) with long‑term NNN leases and 100% for multifamily (Lofts at Somer Station).; 22 fully furnished apartments providing steady multifamily income.**
