Updated Duplex with New
For Sale
$275,000
188 Frawley Road, Chattanooga, TN 37412
Two vacant units support immediate occupancy or leasing flexibility near I-75 and East Ridge amenities.
Property Size1,860 SF
Days on Market12
Property Features for 188 Frawley Road
General Information
Standard status
Active
Size
1,860 SF
Property subtype
Duplex
Units
Unit Mix
2 x 2BR/1BA
Multifamily Units
2
Additional Details
Highway Access
Yes
Taxes and HOA fees
Annual Taxes
$2,831
Building Details
Building Size
1,860 SF
Year Built
1985
Listing Agency:
REAL Broker
(423) 645-3862
Listed By:
Michael Kelly · License #322724
(423) 645-3862
Source:
Gracefrankgroup
Added: Jul 31
Changed: Aug 10
Last Checked: Aug 10 at 10:08AM
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 REAL Broker
Investment Insights
Based on property information with market context.
Built in 1985, this duplex contains two separate units, each with 2 bedrooms and 1 full bath. Interior improvements include refreshed kitchens, new vinyl flooring, fresh paint, and additional modern updates. A new roof has been installed. The HVAC heater blower was changed in unit 188, while the HVAC system in unit 190 is 4 years old.
Both units are currently vacant, allowing an owner to occupy one side, lease both units, or establish new tenancy. The property is near I-75 at Exit 1 and provides access to Camp Jordan, Topgolf, Bass Pro Shops, the Red Wolves Soccer Stadium, Chick-fil-A, and East Ridge’s restaurant and entertainment district. Downtown Chattanooga is also a short drive away.
Both units are currently vacant, allowing an owner to occupy one side, lease both units, or establish new tenancy. The property is near I-75 at Exit 1 and provides access to Camp Jordan, Topgolf, Bass Pro Shops, the Red Wolves Soccer Stadium, Chick-fil-A, and East Ridge’s restaurant and entertainment district. Downtown Chattanooga is also a short drive away.
Key Highlights
- Duplex with two 2‑bedroom, 1‑bath units
- New roof installed
- Updated kitchens, new vinyl flooring, and fresh paint in both units
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
$18,261
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
6.64%
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%
$365,220
$365.2K
Cap Rate 7%
$260,871
$260.9K
Cap Rate 9%
$202,900
$202.9K
Market Conditions
NOI Build-Up for 1,860 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
$27.9K $15.00/SF
− Vacancy
−$1.8K −$0.98/SF
EGI
$26.1K $14.03/SF
− OpEx
−$7.8K −$4.21/SF
NOI
$18.3K $9.82/SF
Area
Chattanooga, TN
Vacancy
6.50%
Lease Rate
$15.00 /SF/Yr
Expense Ratio
30.00%
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%
$365,220
Cap Rate 7%
$260,871
Cap Rate 9%
$202,900
Alternative Uses
Best Use
Multifamily LT 5
$260.9K
$228.3K – $304.4K
NOI $18,261 @ 7.0% cap · market cap 6.64%
Second Best
Apartment 5plus
$234.1K
$204.8K – $273.1K
NOI $16,386 @ 7.0% cap · market cap 5.96%
Theoretical Best
Office A
$410.8K
$359.4K – $479.3K
NOI $28,755 @ 7.0% cap · market cap 10.46%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
2
Residential units
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
48
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 Multifamily in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Duplex - Two vacant units support immediate occupancy or leasing flexibility near I-75 and East Ridge amenities.
Where is this duplex located?
The property is located at 188 Frawley Road Chattanooga, TN.
What is the asking price?
The asking price for this property is $275,000.
What are key features of this property?
This property features: Duplex with two 2‑bedroom, 1‑bath units; New roof installed; Updated kitchens, new vinyl flooring, and fresh paint in both units
