Mixed-Use Building on Main
For Sale
$375,000
311 South Main Street, Lake City, TN 37769
Fully renovated mixed-use building with main-level commercial space and two upstairs 1-bedroom apartments, plus rear off-street parking.
Property Size2,848 SF
Price / SF$131.67
Days on Market568
Property Features for 311 South Main Street
General Information
Standard status
Active
Size
2,848 SF
Property subtype
Multi-Family
Zoning
commercial
Additional Details
Road Access
Yes
Multifamily Units
2
Taxes and HOA fees
Annual Taxes
$894
Amenities
Central Cooling
Yes
Vinyl, Radiant Floors, Other
True
Central, Electric
Dryer, Range, Refrigerator, Self Cleaning Oven, Washer
Windows - Vinyl
Brick, Block
Building Details
Year Built
1925
Year Renovated
2008
Stories
2
Listing Agency:
United Real Estate Solutions
(865) 621-2040
Listed By:
Giang Nguyen
Source:
Compass
Added: Jan 19, 2025
Changed: Aug 9
Last Checked: Aug 9 at 12:37PM
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 United Real Estate Solutions
Investment Insights
Based on property information with market context.
This fully renovated mixed-use building includes main-level commercial space and two upstairs 1-bedroom apartments. The building was completely remodeled in 2008, with updates noted for wiring, plumbing, HVAC, windows, and interior finishes throughout. Off-street parking is available in the rear, supporting convenient access for both tenants and customers.
The property is located on South Main Street in Downtown Rocky Top, TN, described as having highly visible frontage for storefront and professional uses.
With commercial zoning in place, the main level is suited for retail, office, or professional use, while the upstairs units provide separate residential rental or owner-occupancy options within the same building.
The property is located on South Main Street in Downtown Rocky Top, TN, described as having highly visible frontage for storefront and professional uses.
With commercial zoning in place, the main level is suited for retail, office, or professional use, while the upstairs units provide separate residential rental or owner-occupancy options within the same building.
Key Highlights
- Fully renovated mixed‑use building (remodeled in 2008) with updated wiring, plumbing, HVAC, windows, and finishes
- Main level offers 1,700 SF of commercial space for retail, office, or professional use
- Two upstairs 1‑bedroom apartments totaling 1,400 SF for rental income or owner‑occupancy
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
$31,100
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
8.29%
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%
$622,000
$622.0K
Cap Rate 7%
$444,286
$444.3K
Cap Rate 9%
$345,556
$345.6K
Market Conditions
NOI Build-Up for 2,848 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
$54.7K $19.20/SF
− Vacancy
−$4.9K −$1.73/SF
EGI
$49.8K $17.47/SF
− OpEx
−$18.7K −$6.55/SF
NOI
$31.1K $10.92/SF
Area
Anderson County, TN
Vacancy
9.00%
Lease Rate
$19.20 /SF/Yr
Expense Ratio
37.50%
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%
$622,000
Cap Rate 7%
$444,286
Cap Rate 9%
$345,556
Alternative Uses
Best Use
Retail
$584.4K
$511.4K – $681.8K
NOI $40,909 @ 7.0% cap · market cap 10.91%
Second Best
Office B
$538.3K
$471.0K – $628.0K
NOI $37,679 @ 7.0% cap · market cap 10.05%
Theoretical Best
Office A
$705.4K
$617.2K – $823.0K
NOI $49,377 @ 7.0% cap · market cap 13.17%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
2
Residential units
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
154
Businesses Nearby
Explore this area
Business Placement
Demographics for 37769, TN
5,724
Population
2,855
Households
2
Avg Household Size
44
Median Age
11%
College-Educated
87%
High-School Grad
30.0 sq mi
ZIP Area
191
Density / Sq Mi
$51,691
Median Household Income
$38,417
Median Earnings
$700
Median Rent
$192,600
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?
Live-work space - Fully renovated mixed-use building with main-level commercial space and two upstairs 1-bedroom apartments, plus rear off-street parking.
Where is this live-work space located?
The property is located at 311 South Main Street Lake City, TN.
What is the asking price?
The asking price for this property is $375,000.
What are key features of this property?
This property features: Fully renovated mixed‑use building (remodeled in 2008) with updated wiring, plumbing, HVAC, windows, and finishes; Main level offers 1,700 SF of commercial space for retail, office, or professional use; Two upstairs 1‑bedroom apartments totaling 1,400 SF for rental income or owner‑occupancy
