16-Unit Apartment Building
New
For Sale
$1,590,000
204 E Watauga Avenue, Johnson City, TN 37601
Commercial Sale, Johnson City, TN
Property Size8,942 SF
Price / SF$177.81
Days on Market4
Property Features for 204 E Watauga Avenue
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning
RO 1
Parking
9
Subdivision
Not In Subdivision
Directions
From I-81, take Exit 59 onto US-23/I-26 West toward Johnson City. Continue on I-26 and take the Watauga Avenue (SR 400) exit. Follow Watauga Avenue through downtown, and you'll arrive at 204 East Watauga Avenue on the right in the West Davis Park neighborhood.
Standard status
Active
APN
046k N 01900 000
Size
8,942 SF
Taxes and HOA fees
Tax Annual Amount
6873
Utilities
Sewer type
Public Sewer, Septic Tank
Cooling system
Wall Unit(s)
Water source
Public
Amenities
laundry room
Building Details
Year built
1920
Building materials
Vinyl Siding, Wood Siding
Roof type
Shingle, Composition
Listing Agency:
eXp Realty, LLC
(888) 519-5113
Listed By:
Matthew McCrory · License #347285
(423) 557-7839
Added: Sep 9
Changed: Sep 11
Last Checked: Sep 12 at 3:06PM
MLS# 10000670
Copyright © 2026 Tennessee Virginia Regional Multiple Listing Service. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
This 16-unit multifamily portfolio spans three apartment buildings at 200, 204, and 206 E Watauga Avenue. The property contains 8,942 square feet and was built in 1920. The unit mix includes fifteen one-bedroom, one-bath apartments and one three-bedroom, one-bath apartment. Buildings 200 and 204 each contain six one-bedroom units, while 206 includes three one-bedroom units and the three-bedroom residence. Electrical metering is separate for the units in the first two buildings; utilities at 206 are shared. A ground-level laundry room serves the apartments in 206, with leased washer and dryer equipment available for assumption.
Capital improvements include six fully remodeled units with new flooring, paint, bathrooms, appliances, cabinetry, countertops, and PTAC units where needed. Other apartments have received flooring, paint, plumbing, and appliance updates. The property is fully occupied and professionally managed by a local property management company. It is located less than 3 miles from ETSU and less than 5 miles from Milligan University, with RO 1 zoning and public water service.
Capital improvements include six fully remodeled units with new flooring, paint, bathrooms, appliances, cabinetry, countertops, and PTAC units where needed. Other apartments have received flooring, paint, plumbing, and appliance updates. The property is fully occupied and professionally managed by a local property management company. It is located less than 3 miles from ETSU and less than 5 miles from Milligan University, with RO 1 zoning and public water service.
Key Highlights
- 16 fully occupied apartments across 3 separate buildings
- 8,942 square feet on 3 properties at 200, 204, and 206 E Watauga Avenue
- Unit mix includes fifteen 1‑bedroom/1‑bath apartments and one 3‑bedroom/1‑bath apartment
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
Yes
Utilities to site
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
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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 - Fully occupied multifamily portfolio with professional management and updated apartment interiors.
Where is this apartment building located?
The property is located at 204 E Watauga Avenue 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 fully occupied apartments across 3 separate buildings; 8,942 square feet on 3 properties at 200, 204, and 206 E Watauga Avenue; Unit mix includes fifteen 1‑bedroom/1‑bath apartments and one 3‑bedroom/1‑bath apartment
