Building Details

Year Built 2004

Buildings 1

Stories 1

Units 1

Listing Agency: Keller Williams Realty

Listed By: Jeffrey Dodson · License #GA 336360 Show Phone

Source: Crexi

Added: Aug 6, 2024 Changed: Sep 18 Last Checked: Sep 18 at 4:28AM

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Investment Insights

Based on property information with market context.

This property presents a manufacturing business opportunity, featuring a warehouse with over 14,000 square feet of space, situated on 1.5 fenced acres. The sale includes all equipment, supplies, real estate, and the current book of business. The property is zoned M-2, offering versatility. The business has been operating from this location for approximately two decades. The current revenue is over two million annually.

Key Highlights

• Established manufacturing business included, generating over $2 million in annual revenue.
• Spacious 14,000+ sq ft warehouse on 1.5 fenced acres.
• Sale includes all equipment, supplies, real estate and existing book of business.

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

$78,699

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

3.58%

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%

$1,573,980 $1.6M

Cap Rate 7%

$1,124,271 $1.1M

Cap Rate 9%

$874,433 $874.4K

Market Conditions

NOI Build-Up for 14,890 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

$115.5K $7.76/SF

− Vacancy

−$3.1K −$0.21/SF

EGI

$112.4K $7.55/SF

− OpEx

−$33.7K −$2.27/SF

NOI

$78.7K $5.29/SF

Area

Hamilton County, TN

Vacancy

2.70%

Lease Rate

$7.76 /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%

$1,573,980

Cap Rate 7%

$1,124,271

Cap Rate 9%

$874,433

Alternative Uses

Best Use

Industrial

$1.12M

$983.7K – $1.31M (±1% cap)

NOI $78,699 @ 7.0% cap · market cap 3.58%

Second Best

—

—

no second resolved use

Theoretical Best

Healthcare Medical

$2.47M

$2.16M – $2.88M (±1% cap)

NOI $173,085 @ 7.0% cap · market cap 7.87%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

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Current Use

Lite-ning Trailers Inc (Bike/Boat/Book/etc) Store Newman Industries Industrial Manufacturer

Suggested Use

Top Pick Building Supply Electrical Service Storage Facility Garden Center Kitchen & Bath Showroom Real Estate Agency

Score = modeled unmet demand for each use within ~1 mi (higher = bigger opportunity). Zoning and permitted uses should be independently verified with local authorities.

Location Intelligence

Trade Area within ½ mile

36

Businesses Nearby

Explore this area Business Placement

Demographics for 37373, TN

3,343

Population

1,142

Households

2.9

Avg Household Size

46

Median Age

16%

College-Educated

85%

High-School Grad

40.6 sq mi

ZIP Area

82

Density / Sq Mi

$59,306

Median Household Income

$46,007

Median Earnings

$1,072

Median Rent

$295,800

Median Home Value

Market

Vacancy Rate% for Industrial in South region

6% 2019

6.5% 2020

4% 2021

3.5% 2022

6% 2023

7.6% 2024

7.9% 2025

Questions? Ask Rey

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What type of property is this? Where is this manufacturing properties located? What is the asking price? Find similar properties What are key features of this property?

Frequently Asked Questions

What type of property is this?

Manufacturing property - 14,000+ sq ft warehouse on 1.5 acres for sale.

Where is this manufacturing property located?

The property is located at 13543 Back Valley Rd Sale Creek, TN.

What is the asking price?

The asking price for this property is $2,200,000.

What are key features of this property?

This property features: Established manufacturing business included, generating over $2 million in annual revenue.; Spacious 14,000+ sq ft warehouse on 1.5 fenced acres.; Sale includes all equipment, supplies, real estate and existing book of business.