Mixed-Use Property with Retail
For Sale
$725,000
1242 Ladd Springs Road SE, Cleveland, TN 37323
Single-level layout combines occupied apartments with a central retail area under commercial zoning.
Property Size8,814 SF
Days on Market58
Property Features for 1242 Ladd Springs Road SE
General Information
Standard status
Active
Size
8,814 SF
Property subtype
Commercial
Zoning
Commercial
Occupancy
100%
Units
Unit Mix
8 x 1BR
Multifamily Units
8
Building Details
Building Size
8,814 SF
Year Built
1976
Stories
1
Listing Agency:
Coldwell Banker Kinard Realty
(423) 476-5532
Listed By:
Tammy Johnson · License #279286
Source:
Spotlightproperties
Added: Jun 15
Changed: Aug 10
Last Checked: Aug 11 at 2:20PM
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 Coldwell Banker Kinard Realty
Investment Insights
Based on property information with market context.
This mixed-use property contains eight one-bedroom apartments arranged around a central retail space on one level. Four apartments are positioned on each side of the retail component, creating a straightforward residential and commercial layout. The apartments feature updated luxury vinyl plank flooring and renovated bathrooms.
Located at 1242 Ladd Springs Road SE in Cleveland, the property is commercially zoned and situated in the county. The building was constructed in 1976 and includes both residential units and retail space within the same structure.
Located at 1242 Ladd Springs Road SE in Cleveland, the property is commercially zoned and situated in the county. The building was constructed in 1976 and includes both residential units and retail space within the same structure.
Key Highlights
- Eight fully occupied one‑bedroom apartments
- Central retail space with four apartments on each side
- Single‑level mixed‑use layout
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
$65,549
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
9.04%
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%
$1,310,980
$1.3M
Cap Rate 7%
$936,414
$936.4K
Cap Rate 9%
$728,322
$728.3K
Market Conditions
NOI Build-Up for 8,814 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
$126.9K $14.40/SF
− Vacancy
−$7.7K −$0.88/SF
EGI
$119.2K $13.52/SF
− OpEx
−$53.6K −$6.08/SF
NOI
$65.5K $7.44/SF
Area
Bradley County, TN
Vacancy
6.10%
Lease Rate
$14.40 /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%
$1,310,980
Cap Rate 7%
$936,414
Cap Rate 9%
$728,322
Alternative Uses
Best Use
Mixed Use
$1.27M
$1.12M – $1.49M
NOI $89,242 @ 7.0% cap · market cap 12.31%
Second Best
Retail
$1.19M
$1.04M – $1.39M
NOI $83,292 @ 7.0% cap · market cap 11.49%
Theoretical Best
Office A
$1.85M
$1.62M – $2.16M
NOI $129,460 @ 7.0% cap · market cap 17.86%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
8
Residential units
100%
Occupancy
Location Intelligence
Trade Area within ½ mile
10
Businesses Nearby
Explore this area
Business Placement
Demographics for 37323, TN
31,497
Population
12,841
Households
2.5
Avg Household Size
41
Median Age
18%
College-Educated
88%
High-School Grad
114.6 sq mi
ZIP Area
275
Density / Sq Mi
$67,538
Median Household Income
$41,922
Median Earnings
$908
Median Rent
$213,900
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?
Mixed-use property - Single-level layout combines occupied apartments with a central retail area under commercial zoning.
Where is this mixed-use property located?
The property is located at 1242 Ladd Springs Road SE Cleveland, TN.
What is the asking price?
The asking price for this property is $725,000.
What are key features of this property?
This property features: Eight fully occupied one‑bedroom apartments; Central retail space with four apartments on each side; Single‑level mixed‑use layout
