Kingsport Multifamily Investment
For Sale
Contact for pricing
Pending
1405 Stratford Rd, Kingsport, TN 37664
24-unit multifamily property with value-add potential in Kingsport, Tennessee.
Property Size24,420 SF
Days on Market193
Property Features for 1405 Stratford Rd
General Information
Standard status
Pending
Size
24,420 SF
Class
A
Property subtype
Multifamily
Zoning
R3
Occupancy
71%
Investment Type
Net Lease
Building Details
Year Built
1979
Buildings
6
Stories
2
Units
24
Listing Agency:
The Addington Agency
(423) 646-1060
Listed By:
Garrett Addington · License #TN: 337697
Source:
Crexi
Added: Jan 30
Changed: Aug 8
Last Checked: Jul 24 at 1:55PM
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 The Addington Agency
Investment Insights
Based on property information with market context.
Green Valley Manor is a multifamily property featuring 24 units across six individually deeded quadplexes. Each unit includes 2 bedrooms and 1 bathroom, laundry hookups, private balconies, dedicated kitchen and dining space, and living areas. The property is individually metered throughout. Exterior renovations completed in 2019 include a new roof, windows, and siding. Select units have received interior upgrades such as updated flooring, cabinetry, appliances, and finishes. Seven of the 24 units are intentionally held vacant. Upon transfer of ownership, rent limitations do not carry forward, allowing a new owner to lease vacant units and renew tenants at market rates. The property is located in Kingsport, with access to Fort Henry Drive, Stone Drive, I-81, and I-26. The area benefits from a diversified economy spanning healthcare, industrial, and service sectors.
Key Highlights
- Significant value‑add opportunity to increase annual NOI to $180,000-$190,000.
- Rare flexibility to sell off individual quadplex buildings.
- Extensive exterior renovations completed in 2019 including a new roof, windows, and siding.
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
$182,205
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
8.30%
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%
$3,644,100
$3.6M
Cap Rate 7%
$2,602,929
$2.6M
Cap Rate 9%
$2,024,500
$2.0M
Market Conditions
NOI Build-Up for 24,420 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
$278.4K $11.40/SF
− Vacancy
−$18.1K −$0.74/SF
EGI
$260.3K $10.66/SF
− OpEx
−$78.1K −$3.20/SF
NOI
$182.2K $7.46/SF
Area
Sullivan County, TN
Vacancy
6.50%
Lease Rate
$11.40 /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%
$3,644,100
Cap Rate 7%
$2,602,929
Cap Rate 9%
$2,024,500
Alternative Uses
Best Use
Multifamily LT 5
$2.60M
$2.28M – $3.04M
NOI $182,205 @ 7.0% cap · market cap 8.30%
Second Best
Apartment 5plus
$2.44M
$2.13M – $2.84M
NOI $170,584 @ 7.0% cap · market cap 7.77%
Theoretical Best
Office A
$9.14M
$8.00M – $10.67M
NOI $640,140 @ 7.0% cap · market cap 29.16%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
127
Businesses Nearby
Explore this area
Business Placement
Demographics for 37664, TN
28,748
Population
13,914
Households
2.1
Avg Household Size
44
Median Age
34%
College-Educated
92%
High-School Grad
33.9 sq mi
ZIP Area
848
Density / Sq Mi
$61,164
Median Household Income
$37,047
Median Earnings
$817
Median Rent
$204,900
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?
Quadplex - 24-unit multifamily property with value-add potential in Kingsport, Tennessee.
Where is this quadplex located?
The property is located at 1405 Stratford Rd Kingsport, TN.
What is the asking price?
The asking price for this property is $2,195,000.
What are key features of this property?
This property features: Significant value‑add opportunity to increase annual NOI to $180,000-$190,000.; Rare flexibility to sell off individual quadplex buildings.; Extensive exterior renovations completed in 2019 including a new roof, windows, and siding.
