Two-Building Mixed-Use
New
For Sale
Contact for pricing
125 W Summit Hill Dr, Knoxville, TN 37902
Multi-story improvements combine office, apartment, and shell areas with secured exterior space and a garage door.
Property Size5,912 SF
Price / SF$279.09
Days on Market6
Property Features for 125 W Summit Hill Dr
General Information
Standard status
Active
Size
5,912 SF
Property subtype
OFFICE
Building Details
Buildings
2
Listing Agency:
Hatcher-Hill Brokerage, LLC
(865) 332-7822
Listed By:
Mary Katherine Wormsley
(865) 332-7822
Source:
Moodyscre
Added: Aug 18
Changed: Aug 22
Last Checked: Aug 22 at 6:04AM
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 Hatcher-Hill Brokerage, LLC
Investment Insights
Based on property information with market context.
This mixed-use property includes two multi-story buildings with approximately 5,912 square feet of exterior building area. The existing configuration combines office space, an apartment component, and shell space, providing several distinct areas within the improvements.
Exterior fencing encloses the property, while additional space is located behind the buildings. A garage with a door is also included. The property is located at 125 W Summit Hill Dr in Knoxville, Tennessee, within ZIP code 37902.
Exterior fencing encloses the property, while additional space is located behind the buildings. A garage with a door is also included. The property is located at 125 W Summit Hill Dr in Knoxville, Tennessee, within ZIP code 37902.
Key Highlights
- Two multi‑story buildings with approximately 5,912 square feet of exterior building area
- Existing mix of office, apartment, and shell space
- Fenced exterior areas with additional rear space
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
$78,216
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
4.74%
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%
$1,564,320
$1.6M
Cap Rate 7%
$1,117,371
$1.1M
Cap Rate 9%
$869,067
$869.1K
Market Conditions
NOI Build-Up for 5,912 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
$124.2K $21.00/SF
− Vacancy
−$19.9K −$3.36/SF
EGI
$104.3K $17.64/SF
− OpEx
−$26.1K −$4.41/SF
NOI
$78.2K $13.23/SF
Area
Knoxville, TN
Vacancy
16.00%
Lease Rate
$21.00 /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%
$1,564,320
Cap Rate 7%
$1,117,371
Cap Rate 9%
$869,067
Alternative Uses
Best Use
Office B
$1.12M
$977.7K – $1.30M
NOI $78,216 @ 7.0% cap · market cap 4.74%
Second Best
Mixed Use
$922.3K
$807.0K – $1.08M
NOI $64,559 @ 7.0% cap · market cap 3.91%
Theoretical Best
Office A
$1.46M
$1.28M – $1.71M
NOI $102,500 @ 7.0% cap · market cap 6.21%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
2,978
Businesses Nearby
Explore this area
Business Placement
Demographics for 37902, TN
2,479
Population
1,908
Households
1.3
Avg Household Size
34
Median Age
55%
College-Educated
95%
High-School Grad
0.4 sq mi
ZIP Area
6,198
Density / Sq Mi
$56,397
Median Household Income
$50,471
Median Earnings
$1,322
Median Rent
$570,700
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 - Multi-story improvements combine office, apartment, and shell areas with secured exterior space and a garage door.
Where is this mixed-use property located?
The property is located at 125 W Summit Hill Dr Knoxville, TN.
What is the asking price?
The asking price for this property is $1,650,000.
What are key features of this property?
This property features: Two multi‑story buildings with approximately 5,912 square feet of exterior building area; Existing mix of office, apartment, and shell space; Fenced exterior areas with additional rear space
