Prime Chattanooga Redevelopment
For Sale
Contact for pricing
Pending
1804 E Main St, Chattanooga, TN 37404
Multi-parcel property with income and redevelopment potential in Chattanooga.
Property Size4,761 SF
Lot Size0.50 Acres
Days on Market166
Property Features for 1804 E Main St
General Information
Standard status
Pending
Size
4,761 SF
Lot size
0.50 Acres
Property subtype
Land, Office, Retail
Zoning
C-C, RN-2
Occupancy
67%
Investment Type
Stabilized
Building Details
Buildings
2
Units
6
Tenancy
Multi
Listing Agency:
Keller Williams Realty Greater Downtown
Listed By:
Jeremy Parker · License #TN 321116
Source:
Crexi
Added: Feb 26
Changed: Aug 8
Last Checked: Aug 10 at 6:24AM
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 Keller Williams Realty Greater Downtown
Investment Insights
Based on property information with market context.
This multi-parcel property is positioned along a rapidly transforming corridor in Chattanooga, presenting a blend of stable income, land value, and long-term redevelopment potential. The property includes a 2,641 SF all-brick restaurant, originally constructed in 1920, secured by a NNN lease, providing immediate passive income. Adjacent to the restaurant is a 2,120 SF office/retail building suitable for continued tenancy or future repositioning. The offering includes three parcels: a 0.21-acre improved parcel (restaurant + office/retail), a 0.18-acre parking lot, and a 0.11-acre vacant parcel. This configuration offers flexibility for investors seeking both current yield and future upside. The dedicated parking lot and vacant land enhance redevelopment feasibility along the fast-growing E Main St / Southside submarket. Surrounded by ongoing residential, retail, and mixed-use development, the location benefits from sustained corridor momentum, increasing density, and strong long-term appreciation drivers. This property is ideal for long-term investors, land-bank strategies, value-add / redevelopment plays, and mixed-use visionaries.
Key Highlights
- Strategic assemblage of three parcels offering flexibility and redevelopment potential.
- Located in a rapidly transforming corridor of Chattanooga with sustained momentum.
- Features a 2,641 SF all‑brick restaurant secured by a NNN lease, providing immediate passive income.
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
$52,561
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
4.20%
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%
$1,051,220
$1.1M
Cap Rate 7%
$750,871
$750.9K
Cap Rate 9%
$584,011
$584.0K
Market Conditions
NOI Build-Up for 4,761 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
$91.4K $19.20/SF
− Vacancy
−$7.3K −$1.54/SF
EGI
$84.1K $17.66/SF
− OpEx
−$31.5K −$6.62/SF
NOI
$52.6K $11.04/SF
Area
Chattanooga, TN
Vacancy
8.00%
Lease Rate
$19.20 /SF/Yr
Expense Ratio
37.50%
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%
$1,051,220
Cap Rate 7%
$750,871
Cap Rate 9%
$584,011
Alternative Uses
Best Use
Mixed Use
$750.9K
$657.0K – $876.0K
NOI $52,561 @ 7.0% cap · market cap 4.20%
Second Best
Specialty Retail
$632.9K
$553.8K – $738.4K
NOI $44,306 @ 7.0% cap · market cap 3.54%
Theoretical Best
Office A
$1.05M
$920.1K – $1.23M
NOI $73,604 @ 7.0% cap · market cap 5.89%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
913
Businesses Nearby
8k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 89%
Home Improvements & Furnishings 11%
MAPCO Mart
Shops & Services
6,038 visits/mo
0.3 miles
City Electric Supply
Home Improvements & Furnishings
935 visits/mo
0.2 miles
CubeSmart Self Storage
Shops & Services
853 visits/mo
0.4 miles
Quick Mart
Shops & Services
306 visits/mo
0.4 miles
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 Retail in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Mixed-use property - Multi-parcel property with income and redevelopment potential in Chattanooga.
Where is this mixed-use property located?
The property is located at 1804 E Main St Chattanooga, TN.
What is the asking price?
The asking price for this property is $1,250,000.
What are key features of this property?
This property features: Strategic assemblage of three parcels offering flexibility and redevelopment potential.; Located in a rapidly transforming corridor of Chattanooga with sustained momentum.; Features a 2,641 SF all‑brick restaurant secured by a NNN lease, providing immediate passive income.
