5-Unit Apartment
For Sale
$380,000
1515 MADISON Ave, Memphis, TN 38104
Multi-Family, Memphis, TN
Property Size3,166 SF
Price / SF$120.03
Days on Market153
Property Features for 1515 MADISON Ave
General Information
Property type
Residential Multi Family
Property subtype
Other
Subdivision
HORN BROS
Standard status
Active
Size
3,166 SF
Taxes and HOA fees
Tax Annual Amount
2794
Amenities
gated parking
on-site laundry
Building Details
Year built
1956
Listing Agency:
Crye-Leike, Inc., REALTORS
(901) 756-8900
Listed By:
Tyler Tapley · License #296080
(901) 871-1290
Added: Mar 31
Changed: Aug 23
Last Checked: Aug 30 at 9:06AM
MLS# 10218073
Copyright © 2026 Memphis Area Association of Realtors®. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
This 5-unit apartment property contains four residences in the primary building and a fifth unit above the garage. The 3,166-square-foot asset also includes gated parking and an on-site laundry facility. Updates completed in 2017 and 2019 included a new roof, HVAC improvements, and selected flooring and appliance upgrades.
Three units are leased, while Units #4 and #5 are vacant. Current leases for Units #1 and #2 extend through 7/31/26, and Unit #3 is leased through 3/28/27. The property was built in 1956 and is professionally managed. It is located at 1515 MADISON Ave in Memphis, TN 38104, near Midtown and Downtown.
Three units are leased, while Units #4 and #5 are vacant. Current leases for Units #1 and #2 extend through 7/31/26, and Unit #3 is leased through 3/28/27. The property was built in 1956 and is professionally managed. It is located at 1515 MADISON Ave in Memphis, TN 38104, near Midtown and Downtown.
Key Highlights
- Five‑unit layout with four apartments in the main building and one unit above the garage
- 3,166 square feet on a property built in 1956
- Gated parking and an on‑site laundry facility
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
$23,640
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
6.22%
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%
$472,800
$472.8K
Cap Rate 7%
$337,714
$337.7K
Cap Rate 9%
$262,667
$262.7K
Market Conditions
NOI Build-Up for 3,166 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
$46.0K $14.52/SF
− Vacancy
−$3.0K −$0.94/SF
EGI
$43.0K $13.58/SF
− OpEx
−$19.3K −$6.11/SF
NOI
$23.6K $7.47/SF
Area
Memphis, TN
Vacancy
6.50%
Lease Rate
$14.52 /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%
$472,800
Cap Rate 7%
$337,714
Cap Rate 9%
$262,667
Alternative Uses
Best Use
Apartment 5plus
$337.7K
$295.5K – $394.0K
NOI $23,640 @ 7.0% cap · market cap 6.22%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$935.7K
$818.7K – $1.09M
NOI $65,498 @ 7.0% cap · market cap 17.24%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
5
Residential units
Location Intelligence
Trade Area within ½ mile
2,788
Businesses Nearby
Explore this area
Business Placement
Demographics for 38104, TN
22,584
Population
14,315
Households
1.6
Avg Household Size
38
Median Age
52%
College-Educated
93%
High-School Grad
5.0 sq mi
ZIP Area
4,517
Density / Sq Mi
$56,452
Median Household Income
$48,300
Median Earnings
$1,073
Median Rent
$301,100
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 - Gated parking and on-site laundry support the existing rental configuration.
Where is this apartment building located?
The property is located at 1515 MADISON Ave Memphis, TN.
What is the asking price?
The asking price for this property is $380,000.
What are key features of this property?
This property features: Five‑unit layout with four apartments in the main building and one unit above the garage; 3,166 square feet on a property built in 1956; Gated parking and an on‑site laundry facility
