Warehouse Investment with Tenant
For Sale
Contact for pricing
1515 E 23rd St, Chattanooga, TN 37404
Warehouse investment property featuring multiple buildings and tenant leases.
Property Size20,818 SF
Price / SF$96.07
Days on Market154
Property Features for 1515 E 23rd St
General Information
Standard status
Active
Size
20,818 SF
Class
C
Property subtype
Industrial
Zoning
C-2, M-1
Occupancy
95%
Lease Type
Gross
Investment Type
Stabilized
Net Operating Income
$158,209
Building Details
Year Built
1950
Buildings
6
Stories
1
Units
7
Tenancy
Multi
Listing Agency:
RE/MAX Properties
(423) 605-9713
Listed By:
Daniel Hunter · License #TN 343739
Source:
Crexi
Added: Mar 20
Changed: Aug 14
Last Checked: Aug 20 at 11:45AM
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 Properties
Investment Insights
Based on property information with market context.
This investment property features a corner lot zoned M-1, currently rented to a dumpster company. The property includes four warehouses, one small shop, and one restaurant. One warehouse is currently available for rent, while the others are occupied by tenants under lease agreements. Detailed information regarding updated improvements is available. The property is situated on a lot with a size of 20818 square feet.
Key Highlights
- Strong tenant leases in place, providing immediate rental income.
- Multiple income streams from 4 warehouses, 1 small shop, and 1 restaurant.
- M‑1 zoning offers flexibility for various industrial and commercial uses.
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
$127,045
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
6.35%
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%
$2,540,900
$2.5M
Cap Rate 7%
$1,814,929
$1.8M
Cap Rate 9%
$1,411,611
$1.4M
Market Conditions
NOI Build-Up for 20,818 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
$154.9K $7.44/SF
− Vacancy
−$5.4K −$0.26/SF
EGI
$149.5K $7.18/SF
− OpEx
−$22.4K −$1.08/SF
NOI
$127.0K $6.10/SF
Area
Chattanooga, TN
Vacancy
3.50%
Lease Rate
$7.44 /SF/Yr
Expense Ratio
15.00%
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%
$2,540,900
Cap Rate 7%
$1,814,929
Cap Rate 9%
$1,411,611
Alternative Uses
Best Use
Specialty Retail
$2.77M
$2.42M – $3.23M
NOI $193,732 @ 7.0% cap · market cap 9.69%
Second Best
Warehouse
$1.81M
$1.59M – $2.12M
NOI $127,045 @ 7.0% cap · market cap 6.35%
Theoretical Best
Office A
$4.60M
$4.02M – $5.36M
NOI $321,843 @ 7.0% cap · market cap 16.09%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
675
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 37404, TN
13,106
Population
5,887
Households
2.2
Avg Household Size
34
Median Age
32%
College-Educated
86%
High-School Grad
5.2 sq mi
ZIP Area
2,520
Density / Sq Mi
$53,585
Median Household Income
$35,983
Median Earnings
$999
Median Rent
$235,300
Median Home Value
Market
Vacancy Rate% for Industrial in South region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
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Frequently Asked Questions
What type of property is this?
Warehouse - Warehouse investment property featuring multiple buildings and tenant leases.
Where is this warehouse located?
The property is located at 1515 E 23rd St Chattanooga, TN.
What is the asking price?
The asking price for this property is $2,000,000.
What are key features of this property?
This property features: Strong tenant leases in place, providing immediate rental income.; Multiple income streams from 4 warehouses, 1 small shop, and 1 restaurant.; M‑1 zoning offers flexibility for various industrial and commercial uses.
