Two-Building Apartment
For Sale
$1,799,950
1412 Armstrong Avenue, Knoxville, TN 37917
The property combines furnished apartments, separately metered units, individual HVAC systems, and on-site laundry.
Property Size8,514 SF
Price / SF$211.41
Days on Market318
Property Features for 1412 Armstrong Avenue
General Information
Standard status
Active
Size
8,514 SF
Property subtype
Multi-Family
Zoning
RN4
Units
Unit Mix
2 x 3BR/1.5BA, 2 x 1BR/1BA, 8 x 1BR/1BA
Multifamily Units
12
Taxes and HOA fees
Annual Taxes
$15,580
Amenities
on-site laundry
True
Yes
Laminate, Hardwood, Carpet
Dishwasher, Dryer, Microwave, Range, Refrigerator, Self Cleaning Oven, Washer
Fiber Cement, Aluminum Siding, Cement, Block, Frame, Brick
Building Details
Year Built
1920
Buildings
2
Listing Agency:
Pace Probity Asset Management
(865) 388-7131
Listed By:
Christy CJ Pace
Source:
Compass
Added: Oct 20, 2025
Changed: Aug 31
Last Checked: Aug 31 at 10:01PM
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 Pace Probity Asset Management
Investment Insights
Based on property information with market context.
This apartment property includes two buildings with 12 total units and 8,514 square feet. The 1418 Armstrong Avenue building contains four furnished apartments: two with 3 bedrooms and 1½ baths, plus two 1-bedroom, 1-bath units. The 1412 Armstrong Avenue building adds eight 1-bedroom, 1-bath apartments. HVAC configurations vary by building, with shared systems serving the larger furnished units and individual systems in the remaining apartments. Separate metering is provided for the eight units at 1412 Armstrong Avenue, and the property includes an on-site laundry facility.
Built in 1920, the property is located at 1412 and 1418 Armstrong Avenue in Knoxville’s Old North area. It sits on a quiet dead-end street near downtown Knoxville, the University of Tennessee, and major attractions. The property is zoned RN4. Rentals are subject to a 30-day minimum unless the applicable owner-occupied short-term rental provision is met.
Built in 1920, the property is located at 1412 and 1418 Armstrong Avenue in Knoxville’s Old North area. It sits on a quiet dead-end street near downtown Knoxville, the University of Tennessee, and major attractions. The property is zoned RN4. Rentals are subject to a 30-day minimum unless the applicable owner-occupied short-term rental provision is met.
Key Highlights
- 12 total units across two apartment buildings
- 8,514 square feet on one deeded lot
- Four furnished units at 1418 Armstrong Avenue
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
$76,408
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
4.25%
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%
$1,528,160
$1.5M
Cap Rate 7%
$1,091,543
$1.1M
Cap Rate 9%
$848,978
$849.0K
Market Conditions
NOI Build-Up for 8,514 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
$150.2K $17.64/SF
− Vacancy
−$11.3K −$1.32/SF
EGI
$138.9K $16.32/SF
− OpEx
−$62.5K −$7.34/SF
NOI
$76.4K $8.97/SF
Area
Knoxville, TN
Vacancy
7.50%
Lease Rate
$17.64 /SF/Yr
Expense Ratio
45.00%
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%
$1,528,160
Cap Rate 7%
$1,091,543
Cap Rate 9%
$848,978
Alternative Uses
Best Use
Apartment 5plus
$1.09M
$955.1K – $1.27M
NOI $76,408 @ 7.0% cap · market cap 4.25%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$2.11M
$1.85M – $2.46M
NOI $147,612 @ 7.0% cap · market cap 8.20%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
12
Residential units
Location Intelligence
Trade Area within ½ mile
893
Businesses Nearby
Explore this area
Business Placement
Demographics for 37917, TN
25,013
Population
14,216
Households
1.8
Avg Household Size
39
Median Age
31%
College-Educated
87%
High-School Grad
9.5 sq mi
ZIP Area
2,633
Density / Sq Mi
$51,232
Median Household Income
$37,853
Median Earnings
$1,063
Median Rent
$189,100
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?
Apartment building - The property combines furnished apartments, separately metered units, individual HVAC systems, and on-site laundry.
Where is this apartment building located?
The property is located at 1412 Armstrong Avenue Knoxville, TN.
What is the asking price?
The asking price for this property is $1,799,950.
What are key features of this property?
This property features: 12 total units across two apartment buildings; 8,514 square feet on one deeded lot; Four furnished units at 1418 Armstrong Avenue
