Retail Building Near I-75
For Sale
Contact for pricing
Pending
7703 Lee Hwy, Chattanooga, TN 37421
Retail building offered for sale with a long operating history and proximity to the I-75 ramp and Lee Hwy traffic.
Property Size4,300 SF
Days on Market476
Property Features for 7703 Lee Hwy
General Information
Standard status
Pending
Size
4,300 SF
Property subtype
Retail
Zoning
C-C
Site & Location
Traffic Count
22,220 vehicles/day
Highway Access
Yes
Building Details
Year Built
1986
Buildings
1
Stories
1
Units
1
Listing Agency:
Herman Walldorf Commercial, Inc.
Listed By:
Benjamin Pitts · License #TN 303232
(423) 756-2400
Source:
Crexi
Added: May 19, 2025
Changed: Aug 8
Last Checked: Jul 24 at 3:26PM
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 Herman Walldorf Commercial, Inc.
Investment Insights
Based on property information with market context.
This for-sale retail building at 7703 Lee Hwy, Chattanooga, TN 37421 has operated successfully for approximately 40 years. The property historically hosted a liquor store through three owners, with the last owner passing away after decades of use.
The site is about 200 yards from an I-75 ramp. Nearby access is supported by reported traffic levels of over 100,000 vehicles per day on I-75 near the exit, and about 22,220 vehicles per day on Lee Hwy. The area is seeing additional activity, including an upcoming 8-acre apartment development and other new projects, with a new Subaru dealership across the street and new Taco Bell and Starbucks under construction around the corner.
Given the surrounding retail and automotive presence, the property may suit tenants looking to serve the traffic generated by Lee Hwy and I-75, as well as development-driven demand connected to the growth in the area.
The site is about 200 yards from an I-75 ramp. Nearby access is supported by reported traffic levels of over 100,000 vehicles per day on I-75 near the exit, and about 22,220 vehicles per day on Lee Hwy. The area is seeing additional activity, including an upcoming 8-acre apartment development and other new projects, with a new Subaru dealership across the street and new Taco Bell and Starbucks under construction around the corner.
Given the surrounding retail and automotive presence, the property may suit tenants looking to serve the traffic generated by Lee Hwy and I-75, as well as development-driven demand connected to the growth in the area.
Key Highlights
- Year built 1986 retail building with a 40‑year operating history
- About 200 yards from an I‑75 ramp; I‑75 averages over 100,000 vehicles per day near the exit
- 22,220 vehicles per day on Lee Hwy, noted as growing
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
$33,230
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
3.91%
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%
$664,600
$664.6K
Cap Rate 7%
$474,714
$474.7K
Cap Rate 9%
$369,222
$369.2K
Market Conditions
NOI Build-Up for 4,300 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
$51.6K $12.00/SF
− Vacancy
−$4.1K −$0.96/SF
EGI
$47.5K $11.04/SF
− OpEx
−$14.2K −$3.31/SF
NOI
$33.2K $7.73/SF
Area
Chattanooga, TN
Vacancy
8.00%
Lease Rate
$12.00 /SF/Yr
Expense Ratio
30.00%
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%
$664,600
Cap Rate 7%
$474,714
Cap Rate 9%
$369,222
Alternative Uses
Best Use
Retail
$474.7K
$415.4K – $553.8K
NOI $33,230 @ 7.0% cap · market cap 3.91%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$949.7K
$831.0K – $1.11M
NOI $66,477 @ 7.0% cap · market cap 7.82%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
22,220 VPD
Traffic count
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
245
Businesses Nearby
81k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 35%
Dining 35%
Hotels & Casinos 18%
Home Improvements & Furnishings 11%
Mobil
Shops & Services
13,488 visits/mo
0.2 miles
MAPCO Mart
Shops & Services
12,575 visits/mo
0.0 miles
Best Western Heritage Inn
Hotels & Casinos
12,397 visits/mo
0.1 miles
Taco Bell
Dining
11,519 visits/mo
0.3 miles
Wendy's
Dining
10,316 visits/mo
0.2 miles
Demographics for 37421, TN
51,686
Population
23,978
Households
2.2
Avg Household Size
40
Median Age
38%
College-Educated
92%
High-School Grad
31.7 sq mi
ZIP Area
1,630
Density / Sq Mi
$79,958
Median Household Income
$44,452
Median Earnings
$1,313
Median Rent
$299,600
Median Home Value
Market
Vacancy Rate% for Retail in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Retail space - Retail building offered for sale with a long operating history and proximity to the I-75 ramp and Lee Hwy traffic.
Where is this retail space located?
The property is located at 7703 Lee Hwy Chattanooga, TN.
What is the asking price?
The asking price for this property is $850,000.
What are key features of this property?
This property features: Year built 1986 retail building with a 40‑year operating history; About 200 yards from an I‑75 ramp; I‑75 averages over 100,000 vehicles per day near the exit; 22,220 vehicles per day on Lee Hwy, noted as growing
