Multifamily and Commercial Investment
For Sale
Contact for pricing
Pending
1412 Knob Creek Rd, Johnson City, TN 37604
Multifamily and commercial property with income potential in prime location.
Property Size7,800 SF
Lot Size1.00 Acre
Days on Market196
Property Features for 1412 Knob Creek Rd
General Information
Standard status
Pending
Size
7,800 SF
Class
B
Lot size
1.00 Acre
Property subtype
Multifamily, Retail
Zoning
B1 R5
Occupancy
62%
Lease Type
NNN
Investment Type
Stabilized
Building Details
Year Built
1955
Year Renovated
2026
Buildings
3
Stories
2
Units
8
Tenancy
Multi
Listing Agency:
RE/MAX Checkmate Inc REALTORS
Listed By:
Jay Goodson · License #TN 329807
Source:
Crexi
Added: Jan 28
Changed: Aug 8
Last Checked: Aug 8 at 2:42PM
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 RE/MAX Checkmate Inc REALTORS
Investment Insights
Based on property information with market context.
This portfolio presents an opportunity for passive income or owner-operation, featuring 8 multifamily units rented at $1250 per month. Each unit includes two bedrooms and one bathroom within newly renovated spaces. Adjacent to the residential units is a commercial building with a new roof and renovated exterior, formerly known as the Old Norris Bicycle building. The properties, including the commercial building and quadplexes, are being sold together. The 4748 square foot commercial space offers an opportunity to house a business while retaining the apartments as rentals. Subdividing of the apartments into new condos is underway, positioning the 8 units on approximately one acre with a large backyard. Extensive renovations have been completed, and apartments are being re-filled. The units feature washer and dryer hookups. Apartment renovations include siding, roof, plumbing, walls, new kitchens, and decking. The location is central, near shopping and schools. The property's total size is 7800 square feet. The apartments are being subdivided from new condos and will sit on approximately one acre. The proforma gross income will be $114,000 per year.
Key Highlights
- Portfolio includes both residential (8 renovated apartments) and commercial (4748 sq ft building) properties, offering diverse investment opportunities.
- Significant renovations completed on both apartment units and commercial building, including new roofs, siding, plumbing, kitchens, and decking.
- High income potential with a proforma gross income of $114,000 per year.
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
$122,024
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
7.63%
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%
$2,440,480
$2.4M
Cap Rate 7%
$1,743,200
$1.7M
Cap Rate 9%
$1,355,822
$1.4M
Market Conditions
NOI Build-Up for 7,800 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
$179.7K $23.04/SF
− Vacancy
−$5.4K −$0.69/SF
EGI
$174.3K $22.35/SF
− OpEx
−$52.3K −$6.70/SF
NOI
$122.0K $15.64/SF
Area
Washington County, TN
Vacancy
3.00%
Lease Rate
$23.04 /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%
$2,440,480
Cap Rate 7%
$1,743,200
Cap Rate 9%
$1,355,822
Alternative Uses
Best Use
Retail
$1.74M
$1.53M – $2.03M
NOI $122,024 @ 7.0% cap · market cap 7.63%
Second Best
Apartment 5plus
$629.9K
$551.2K – $734.9K
NOI $44,094 @ 7.0% cap · market cap 2.76%
Theoretical Best
Office A
$3.29M
$2.88M – $3.84M
NOI $230,256 @ 7.0% cap · market cap 14.39%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
319
Businesses Nearby
Explore this area
Business Placement
Demographics for 37604, TN
37,025
Population
19,334
Households
1.9
Avg Household Size
38
Median Age
39%
College-Educated
89%
High-School Grad
33.0 sq mi
ZIP Area
1,122
Density / Sq Mi
$49,351
Median Household Income
$31,863
Median Earnings
$950
Median Rent
$231,900
Median Home Value
Market
Vacancy Rate% for Multifamily in South region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Apartment building - Multifamily and commercial property with income potential in prime location.
Where is this apartment building located?
The property is located at 1412 Knob Creek Rd Johnson City, TN.
What is the asking price?
The asking price for this property is $1,600,000.
What are key features of this property?
This property features: Portfolio includes both residential (8 renovated apartments) and commercial (4748 sq ft building) properties, offering diverse investment opportunities.; Significant renovations completed on both apartment units and commercial building, including new roofs, siding, plumbing, kitchens, and decking.; High income potential with a proforma gross income of $114,000 per year.
