16-Unit Apartment
For Sale
$1,590,000
204 E Watauga Ave, Johnson City, TN 37601
Three-building complex offering mostly one-bedroom apartments with professional management and on-site laundry facilities.
Property Size8,942 SF
Price / SF$177.81
Days on Market19
Property Features for 204 E Watauga Ave
General Information
Standard status
Active
Size
8,942 SF
Occupancy
100%
Units
Unit Mix
15 x 1BR/1BA, 1 x 3BR/1BA
Multifamily Units
16
Amenities
laundry room
Building Details
Buildings
3
Listing Agency:
eXp Realty, LLC
(888) 519-5113
Listed By:
Matthew McCrory · License #347285
(423) 557-7839
Source:
Exprealty
Added: Sep 9
Changed: Sep 22
Last Checked: Sep 26 at 7:29AM
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 Realty, LLC
Investment Insights
Based on property information with market context.
This 16-unit apartment property comprises three buildings at 200, 204, and 206 E Watauga Ave. The unit mix includes fifteen one-bedroom, one-bath apartments and one three-bedroom, one-bath apartment. The property was built in 1920 and includes 8,942 square feet. Several apartments have received comprehensive renovations, including new flooring, paint, bathrooms, appliances, cabinetry, countertops, and PTAC units. Other units have been refreshed with flooring, paint, plumbing updates, and appliances as needed.
Electrical service is separately metered for the apartments at 200 and 204 E Watauga Ave., while utilities at 206 E Watauga Ave. are shared. Owner-paid water, internet, trash, and sewer costs are offset through tenant utility charges. Building 206 includes a ground-level laundry room with leased equipment that may be assumed. The property is professionally managed and is less than 3 miles from ETSU and less than 5 miles from Milligan University.
Electrical service is separately metered for the apartments at 200 and 204 E Watauga Ave., while utilities at 206 E Watauga Ave. are shared. Owner-paid water, internet, trash, and sewer costs are offset through tenant utility charges. Building 206 includes a ground-level laundry room with leased equipment that may be assumed. The property is professionally managed and is less than 3 miles from ETSU and less than 5 miles from Milligan University.
Key Highlights
- 16 occupied apartments across 3 buildings
- 15 one‑bedroom units and 1 three‑bedroom unit
- 8,942 square feet; built in 1920
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
$50,549
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
3.18%
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%
$1,010,980
$1.0M
Cap Rate 7%
$722,129
$722.1K
Cap Rate 9%
$561,656
$561.7K
Market Conditions
NOI Build-Up for 8,942 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
$98.7K $11.04/SF
− Vacancy
−$6.8K −$0.76/SF
EGI
$91.9K $10.28/SF
− OpEx
−$41.4K −$4.63/SF
NOI
$50.5K $5.65/SF
Area
Washington County, TN
Vacancy
6.90%
Lease Rate
$11.04 /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%
$1,010,980
Cap Rate 7%
$722,129
Cap Rate 9%
$561,656
Alternative Uses
Best Use
Apartment 5plus
$722.1K
$631.9K – $842.5K
NOI $50,549 @ 7.0% cap · market cap 3.18%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$3.77M
$3.30M – $4.40M
NOI $263,968 @ 7.0% cap · market cap 16.60%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Current Use
Lease Details
16
Residential units
100%
Occupancy
Location Intelligence
Trade Area within ½ mile
1,511
Businesses Nearby
Explore this area
Business Placement
Demographics for 37601, TN
37,079
Population
18,153
Households
2
Avg Household Size
40
Median Age
33%
College-Educated
91%
High-School Grad
47.7 sq mi
ZIP Area
777
Density / Sq Mi
$49,658
Median Household Income
$32,312
Median Earnings
$892
Median Rent
$187,000
Median Home Value
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
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Market
Vacancy Rate% for Multifamily in South region
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Frequently Asked Questions
What type of property is this?
Apartment building - Three-building complex offering mostly one-bedroom apartments with professional management and on-site laundry facilities.
Where is this apartment building located?
The property is located at 204 E Watauga Ave Johnson City, TN.
What is the asking price?
The asking price for this property is $1,590,000.
What are key features of this property?
This property features: 16 occupied apartments across 3 buildings; 15 one‑bedroom units and 1 three‑bedroom unit; 8,942 square feet; built in 1920
