Interior-Corridor
New
For Sale
$2,300,000
163 Bernham Dr NW, Cleveland, TN 37312
Recently renovated hospitality property with CG zoning and convenient access to Interstate 75.
Property Size18,040 SF
Days on Market2
Property Features for 163 Bernham Dr NW
General Information
Standard status
Active
Size
18,040 SF
Property subtype
Hospitality
Building Details
Building Size
18,040 SF
Year Built
1995
Listing Agency:
EXP Commercial
Listed By:
Karan Mistry · License #GA # 442144
(865) 307-0971
Source:
7s
Added: Sep 11
Last Checked: Sep 12 at 4:50AM
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 EXP Commercial
Investment Insights
Based on property information with market context.
The property is an 18,040-square-foot hotel built in 1995 and recently renovated. Its interior-corridor configuration supports a traditional lodging layout, and the asset operates under the Super 8 by Wyndham flag. CG zoning provides a commercial land-use designation for the site.
Located near the Paul Huff Parkway exit, the property offers access to Interstate 75 and is near Lee University and Cleveland-area demand generators. Regional connections extend toward Chattanooga, Knoxville, Atlanta, Nashville, and Birmingham. Trailing-12-month performance includes an occupancy index of 127 and a RevPAR index of 131, with operating considerations identified around revenue management and efficiency improvements.
Located near the Paul Huff Parkway exit, the property offers access to Interstate 75 and is near Lee University and Cleveland-area demand generators. Regional connections extend toward Chattanooga, Knoxville, Atlanta, Nashville, and Birmingham. Trailing-12-month performance includes an occupancy index of 127 and a RevPAR index of 131, with operating considerations identified around revenue management and efficiency improvements.
Key Highlights
- 18,040 SF hotel building constructed in 1995
- Recently renovated interior‑corridor lodging property
- Operates under the Super 8 by Wyndham flag
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
$109,255
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
4.75%
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%
$2,185,100
$2.2M
Cap Rate 7%
$1,560,786
$1.6M
Cap Rate 9%
$1,213,944
$1.2M
Market Conditions
NOI Build-Up for 18,040 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
$270.6K $15.00/SF
− Vacancy
−$40.6K −$2.25/SF
EGI
$230.0K $12.75/SF
− OpEx
−$120.8K −$6.69/SF
NOI
$109.3K $6.06/SF
Area
Bradley County, TN
Vacancy
15.00%
Lease Rate
$15.00 /SF/Yr
Expense Ratio
52.50%
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%
$2,185,100
Cap Rate 7%
$1,560,786
Cap Rate 9%
$1,213,944
Alternative Uses
Best Use
Hotel Hospitality
$1.56M
$1.37M – $1.82M
NOI $109,255 @ 7.0% cap · market cap 4.75%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$3.79M
$3.31M – $4.42M
NOI $264,972 @ 7.0% cap · market cap 11.52%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
311
Businesses Nearby
Explore this area
Business Placement
Demographics for 37312, TN
36,291
Population
15,023
Households
2.4
Avg Household Size
42
Median Age
36%
College-Educated
93%
High-School Grad
64.4 sq mi
ZIP Area
564
Density / Sq Mi
$75,369
Median Household Income
$41,148
Median Earnings
$1,080
Median Rent
$270,500
Median Home Value
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Frequently Asked Questions
What type of property is this?
Hotel - Recently renovated hospitality property with CG zoning and convenient access to Interstate 75.
Where is this hotel located?
The property is located at 163 Bernham Dr NW Cleveland, TN.
What is the asking price?
The asking price for this property is $2,300,000.
What are key features of this property?
This property features: 18,040 SF hotel building constructed in 1995; Recently renovated interior‑corridor lodging property; Operates under the Super 8 by Wyndham flag
