Updated Triplex with Leased
For Sale
$284,000
Pending
1901 Randolph St, Chattanooga, TN 37404
Two of three units are leased, with a 2019 roof and 2020 HVAC updates already completed.
Property Size2,928 SF
Days on Market54
Property Features for 1901 Randolph St
General Information
Standard status
Pending
Size
2,928 SF
Property subtype
Residential Income
Building Details
Year Built
1920
Listing Agency:
Keller Williams Realty
(423) 664-1900
Listed By:
Frank Trimble
Source:
Searchchattanoogahomesnow
Added: Jul 7
Changed: Aug 28
Last Checked: Aug 28 at 7:58PM
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
Investment Insights
Based on property information with market context.
Built in 1920, this 2,928-square-foot triplex contains three units, with 2 currently leased. The property has received a roof replacement in 2019 and HVAC system updates in 2020, providing documented improvements to major building components.
The property is adjacent to the Mill Town development and located minutes from Downtown Chattanooga. Interstate access supports travel throughout the Chattanooga area, while the nearby downtown district offers restaurants, entertainment, shopping, riverfront attractions, and major employment centers.
The property is adjacent to the Mill Town development and located minutes from Downtown Chattanooga. Interstate access supports travel throughout the Chattanooga area, while the nearby downtown district offers restaurants, entertainment, shopping, riverfront attractions, and major employment centers.
Key Highlights
- Triplex with 3 units; 2 are currently leased
- 2,928 square feet on a 1920‑built property
- Roof replacement completed in 2019
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
$25,795
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
9.08%
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%
$515,900
$515.9K
Cap Rate 7%
$368,500
$368.5K
Cap Rate 9%
$286,611
$286.6K
Market Conditions
NOI Build-Up for 2,928 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
$49.9K $17.04/SF
− Vacancy
−$3.0K −$1.02/SF
EGI
$46.9K $16.02/SF
− OpEx
−$21.1K −$7.21/SF
NOI
$25.8K $8.81/SF
Area
Chattanooga, TN
Vacancy
6.00%
Lease Rate
$17.04 /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%
$515,900
Cap Rate 7%
$368,500
Cap Rate 9%
$286,611
Alternative Uses
Best Use
Multifamily LT 5
$410.7K
$359.3K – $479.1K
NOI $28,746 @ 7.0% cap · market cap 10.12%
Second Best
Apartment 5plus
$368.5K
$322.4K – $429.9K
NOI $25,795 @ 7.0% cap · market cap 9.08%
Theoretical Best
Office A
$646.7K
$565.8K – $754.4K
NOI $45,266 @ 7.0% cap · market cap 15.94%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
448
Businesses Nearby
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 Multifamily in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Triplex - Two of three units are leased, with a 2019 roof and 2020 HVAC updates already completed.
Where is this triplex located?
The property is located at 1901 Randolph St Chattanooga, TN.
What is the asking price?
The asking price for this property is $284,000.
What are key features of this property?
This property features: Triplex with 3 units; 2 are currently leased; 2,928 square feet on a 1920‑built property; Roof replacement completed in 2019
