Mixed-Use Property with Residential
For Sale
$489,000
13683 S Hwy 28, Whitwell, TN 37397
Commercial space is paired with a two-bedroom apartment and a separate two-bedroom residence.
Property Size3,768 SF
Price / SF$129.78
Days on Market34
Property Features for 13683 S Hwy 28
General Information
Standard status
Active
Size
3,768 SF
Property subtype
Mixed Use
Occupancy
100%
Units
Unit Mix
1 x 2BR/2BA, 1 x 2BR/1BA
Multifamily Units
2
Building Details
Year Built
2007
Buildings
2
Tenancy
Multi
Listing Agency:
Real Estate Partners Chattanooga LLC
(703) 764-0907
Listed By:
Diana Davies · License #356940
Source:
Viewchattanoogaproperties
Added: Jul 28
Changed: Aug 29
Last Checked: Aug 29 at 10:55PM
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 Real Estate Partners Chattanooga LLC
Investment Insights
Based on property information with market context.
Built in 2007, this mixed-use property combines ground-floor commercial space with an upstairs two-bedroom, two-bathroom apartment and a separate two-bedroom, one-bathroom residence. The commercial area has street-facing exposure, while the apartment includes an open living room, separate dining room, kitchen appliances, a dedicated laundry room, walk-in closets, hardwood flooring, central heat and air, and front and rear porches.
The detached residence has its own entrance, private driveway, and front and rear porches. Both residential components are described as leased to long-term tenants, creating a property configuration that blends commercial occupancy with two residential units. The main building roof and the separate home's shingle roof were each replaced 3 years ago. A 1-Year Home Warranty is included for the buyer.
The detached residence has its own entrance, private driveway, and front and rear porches. Both residential components are described as leased to long-term tenants, creating a property configuration that blends commercial occupancy with two residential units. The main building roof and the separate home's shingle roof were each replaced 3 years ago. A 1-Year Home Warranty is included for the buyer.
Key Highlights
- Ground‑floor commercial area with street‑facing exposure
- Upstairs 2‑bedroom, 2‑bathroom apartment
- Separate 2‑bedroom, 1‑bathroom residence with private driveway
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
$41,599
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
8.51%
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%
$831,980
$832.0K
Cap Rate 7%
$594,271
$594.3K
Cap Rate 9%
$462,211
$462.2K
Market Conditions
NOI Build-Up for 3,768 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
$72.3K $19.20/SF
− Vacancy
−$5.8K −$1.54/SF
EGI
$66.6K $17.66/SF
− OpEx
−$25.0K −$6.62/SF
NOI
$41.6K $11.04/SF
Area
Sequatchie County, TN
Vacancy
8.00%
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%
$831,980
Cap Rate 7%
$594,271
Cap Rate 9%
$462,211
Alternative Uses
Best Use
Mixed Use
$594.3K
$520.0K – $693.3K
NOI $41,599 @ 7.0% cap · market cap 8.51%
Second Best
Apartment 5plus
$474.2K
$414.9K – $553.3K
NOI $33,195 @ 7.0% cap · market cap 6.79%
Theoretical Best
Office A
$832.2K
$728.2K – $970.9K
NOI $58,253 @ 7.0% cap · market cap 11.91%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
2
Residential units
100%
Occupancy
Multi-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
126
Businesses Nearby
Explore this area
Business Placement
Demographics for 37397, TN
9,928
Population
4,709
Households
2.1
Avg Household Size
44
Median Age
14%
College-Educated
80%
High-School Grad
149.3 sq mi
ZIP Area
66
Density / Sq Mi
$55,776
Median Household Income
$33,569
Median Earnings
$754
Median Rent
$160,700
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 - Commercial space is paired with a two-bedroom apartment and a separate two-bedroom residence.
Where is this mixed-use property located?
The property is located at 13683 S Hwy 28 Whitwell, TN.
What is the asking price?
The asking price for this property is $489,000.
What are key features of this property?
This property features: Ground‑floor commercial area with street‑facing exposure; Upstairs 2‑bedroom, 2‑bathroom apartment; Separate 2‑bedroom, 1‑bathroom residence with private driveway
