Renovated Two-Unit
For Sale
$439,900
1422 Stratton Place Dr, Chattanooga, TN 37421
Separate living areas feature in-unit laundry, private deck access, and off-street parking.
Property Size2,700 SF
Price / SF$162.93
Days on Market8
Property Features for 1422 Stratton Place Dr
General Information
Standard status
Active
Size
2,700 SF
Property subtype
Multi-Family
Units
Unit Mix
1 x 3BR/2.5BA, 1 x 2BR/1.5BA
Multifamily Units
2
Additional Details
Gross Income
$41,592
Amenities
in-unit laundry
covered front porch
private rear access to decks
outdoor storage rooms
Building Details
Year Built
1980
Buildings
1
Listing Agency:
Real Estate Partners Chattanooga LLC
Listed By:
Brian Erwin · License #334506
(423) 718-7667
Source:
Weathersbeerealty
Added: Sep 28
Last Checked: Oct 4 at 1:41PM
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.
This 2,700-square-foot duplex at 1422 Stratton Place Dr has two residences: one with 3 bedrooms and 2.5 bathrooms, and another with 2 bedrooms and 1.5 bathrooms. Both include in-unit laundry, large living rooms, upstairs bedrooms, main-level half bathrooms, rear deck access, and outdoor storage. Flooring and paint have been updated, and renovation documentation is available for work completed in 2025. The building dates to 1980; its roof and two HVAC systems are estimated to have been replaced in 2020–2021.
The property is just off East Brainerd Road in Chattanooga’s East Brainerd area, with Hamilton Place Mall and Gunbarrel Road a few minutes away. Exterior features include a covered front porch, lawn, and off-street parking.
The property is just off East Brainerd Road in Chattanooga’s East Brainerd area, with Hamilton Place Mall and Gunbarrel Road a few minutes away. Exterior features include a covered front porch, lawn, and off-street parking.
Key Highlights
- 2,700‑square‑foot duplex
- Unit A: 3 bedrooms and 2.5 bathrooms; Unit B: 2 bedrooms and 1.5 bathrooms
- Renovation documentation for work completed in 2025
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
$26,507
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
6.03%
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%
$530,140
$530.1K
Cap Rate 7%
$378,671
$378.7K
Cap Rate 9%
$294,522
$294.5K
Market Conditions
NOI Build-Up for 2,700 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
$40.5K $15.00/SF
− Vacancy
−$2.6K −$0.98/SF
EGI
$37.9K $14.03/SF
− OpEx
−$11.4K −$4.21/SF
NOI
$26.5K $9.82/SF
Area
Chattanooga, TN
Vacancy
6.50%
Lease Rate
$15.00 /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%
$530,140
Cap Rate 7%
$378,671
Cap Rate 9%
$294,522
Alternative Uses
Best Use
Multifamily LT 5
$378.7K
$331.3K – $441.8K
NOI $26,507 @ 7.0% cap · market cap 6.03%
Second Best
Apartment 5plus
$339.8K
$297.3K – $396.4K
NOI $23,786 @ 7.0% cap · market cap 5.41%
Theoretical Best
Office A
$596.3K
$521.8K – $695.7K
NOI $41,742 @ 7.0% cap · market cap 9.49%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Current Use
Lease Details
2
Residential units
Location Intelligence
Trade Area within ½ mile
832
Businesses Nearby
Explore this area
Business Placement
Demographics for 37421, TN
51,686
Population
23,978
Households
2.2
Avg Household Size
40
Median Age
38%
College-Educated
92%
High-School Grad
31.7 sq mi
ZIP Area
1,630
Density / Sq Mi
$79,958
Median Household Income
$44,452
Median Earnings
$1,313
Median Rent
$299,600
Median Home Value
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Cap Rate, Value Estimation, Potential NOI and more
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Market
Vacancy Rate% for Multifamily in South region
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Frequently Asked Questions
What type of property is this?
Duplex - Separate living areas feature in-unit laundry, private deck access, and off-street parking.
Where is this duplex located?
The property is located at 1422 Stratton Place Dr Chattanooga, TN.
What is the asking price?
The asking price for this property is $439,900.
What are key features of this property?
This property features: 2,700‑square‑foot duplex; Unit A: 3 bedrooms and 2.5 bathrooms; Unit B: 2 bedrooms and 1.5 bathrooms; Renovation documentation for work completed in 2025
