Renovated Corner Commercial
For Sale
Contact for pricing
1502 Tombras Ave, East Ridge, TN 37412
High-visibility, renovated commercial property ideal for offices or mixed-use.
Property Size2,017 SF
Price / SF$195.59
Days on Market184
Property Features for 1502 Tombras Ave
General Information
Standard status
Active
Size
2,017 SF
Class
C
Property subtype
Mixed Use, Office, Retail
Zoning
C-2
Listing Agency:
The Group Real Estate Brokerage
(423) 493-3259
Listed By:
Abbey McDonald · License #TN 342612
Source:
Crexi
Added: Feb 8
Changed: Aug 8
Last Checked: Aug 8 at 2:51PM
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 Group Real Estate Brokerage
Investment Insights
Based on property information with market context.
This professionally renovated commercial property benefits from exceptional exposure on the corner of Tombras Avenue and Ringgold Road, with approximately 26,200 vehicles passing daily. The property is surrounded by established office buildings, making it suitable for offices, professional services, or mixed commercial use. The location offers excellent access from major thoroughfares and convenient proximity to dining, retail, and local amenities. Recent upgrades, completed in 2025, include a complete interior and exterior renovation with modern finishes, updated design elements, and enhanced curb appeal. A new privacy fence has been added for security and a polished appearance, along with a new parking area providing ample on-site parking. The property layout includes a first level with a welcoming lobby/reception area, four potential office spaces, a kitchen, a bathroom, and storage, ideal for client-facing operations. The second level features a large private office, additional storage or a small office space, and a bathroom, perfect for executive or administrative use. The property size is 2017 square feet.
Key Highlights
- High Visibility: Prime corner location at Tombras Avenue and Ringgold Road with approximately 26,200 vehicles per day.
- Professionally Renovated: Complete interior and exterior renovation with modern finishes and updated design elements (2025).
- Ample On‑Site Parking: New parking area for clients and staff.
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
$23,145
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
5.87%
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%
$462,900
$462.9K
Cap Rate 7%
$330,643
$330.6K
Cap Rate 9%
$257,167
$257.2K
Market Conditions
NOI Build-Up for 2,017 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
$36.3K $18.00/SF
− Vacancy
−$5.4K −$2.70/SF
EGI
$30.9K $15.30/SF
− OpEx
−$7.7K −$3.82/SF
NOI
$23.1K $11.48/SF
Area
Chattanooga, TN
Vacancy
15.00%
Lease Rate
$18.00 /SF/Yr
Expense Ratio
25.00%
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%
$462,900
Cap Rate 7%
$330,643
Cap Rate 9%
$257,167
Alternative Uses
Best Use
Office B
$330.6K
$289.3K – $385.8K
NOI $23,145 @ 7.0% cap · market cap 5.87%
Second Best
Mixed Use
$318.1K
$278.4K – $371.1K
NOI $22,268 @ 7.0% cap · market cap 5.64%
Theoretical Best
Office A
$445.5K
$389.8K – $519.7K
NOI $31,182 @ 7.0% cap · market cap 7.90%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
542
Businesses Nearby
Explore this area
Business Placement
Demographics for 37412, TN
21,881
Population
10,305
Households
2.1
Avg Household Size
39
Median Age
23%
College-Educated
86%
High-School Grad
8.7 sq mi
ZIP Area
2,515
Density / Sq Mi
$56,600
Median Household Income
$37,858
Median Earnings
$1,120
Median Rent
$182,600
Median Home Value
Market
Vacancy Rate% for Office in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Mixed-use property - High-visibility, renovated commercial property ideal for offices or mixed-use.
Where is this mixed-use property located?
The property is located at 1502 Tombras Ave East Ridge, TN.
What is the asking price?
The asking price for this property is $394,500.
What are key features of this property?
This property features: High Visibility: Prime corner location at Tombras Avenue and Ringgold Road with approximately 26,200 vehicles per day.; Professionally Renovated: Complete interior and exterior renovation with modern finishes and updated design elements (2025).; Ample On‑Site Parking: New parking area for clients and staff.
