Updated Two-Unit
New
For Sale
$390,000
208a E Palestine Ave, Madison, TN 37115
Two separately metered residences offer refreshed interiors, fireplaces, and individual washer and dryer connections.
Property Size1,612 SF
Price / SF$241.94
Days on Market6
Property Features for 208a E Palestine Ave
General Information
Standard status
Active
Size
1,612 SF
Property subtype
Residential Income
Units
Unit Mix
2 x 2BR/1BA
Multifamily Units
2
Additional Details
Asking Price
$390,000
Building Details
Year Built
1983
Buildings
1
Listing Agency:
Coldwell Banker Southern Realty
Listed By:
Edward Klem 6159471188 · License #376759
(615) 947-1188
Source:
Smokymountainshomefinder
Added: Sep 5
Changed: Sep 9
Last Checked: Sep 10 at 10:23AM
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 Coldwell Banker Southern Realty
Investment Insights
Based on property information with market context.
This 1,612-square-foot duplex, built in 1983, contains two separately metered residences. Each unit provides two bedrooms, one full bathroom, a fireplace, washer and dryer connections, and refreshed interior finishes. Separate water and sewer meters support individual utility usage by residence.
The property is located at 208a E Palestine Ave in Madison, Tennessee, less than eight miles from downtown Nashville. The Grand Ole Opry, Opry Mills, shopping, dining, and major commuter routes are minutes away. Both residences share the same two-bedroom, one-bath configuration, creating a consistent layout across the duplex.
The property is located at 208a E Palestine Ave in Madison, Tennessee, less than eight miles from downtown Nashville. The Grand Ole Opry, Opry Mills, shopping, dining, and major commuter routes are minutes away. Both residences share the same two-bedroom, one-bath configuration, creating a consistent layout across the duplex.
Key Highlights
- Two‑unit duplex totaling 1,612 square feet
- Each residence includes 2 bedrooms and 1 full bath
- Separate water and sewer meters for the 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
$19,439
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
4.98%
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%
$388,780
$388.8K
Cap Rate 7%
$277,700
$277.7K
Cap Rate 9%
$215,989
$216.0K
Market Conditions
NOI Build-Up for 1,612 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
$29.6K $18.36/SF
− Vacancy
−$1.8K −$1.13/SF
EGI
$27.8K $17.23/SF
− OpEx
−$8.3K −$5.17/SF
NOI
$19.4K $12.06/SF
Area
Davidson County, TN
Vacancy
6.17%
Lease Rate
$18.36 /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%
$388,780
Cap Rate 7%
$277,700
Cap Rate 9%
$215,989
Alternative Uses
Best Use
Multifamily LT 5
$277.7K
$243.0K – $324.0K
NOI $19,439 @ 7.0% cap · market cap 4.98%
Second Best
Apartment 5plus
$255.8K
$223.8K – $298.4K
NOI $17,906 @ 7.0% cap · market cap 4.59%
Theoretical Best
Warehouse
$1.95M
$1.71M – $2.28M
NOI $136,611 @ 7.0% cap · market cap 35.03%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
2
Residential units
Location Intelligence
Trade Area within ½ mile
463
Businesses Nearby
Explore this area
Business Placement
Demographics for 37115, TN
39,821
Population
19,845
Households
2
Avg Household Size
37
Median Age
23%
College-Educated
82%
High-School Grad
21.5 sq mi
ZIP Area
1,852
Density / Sq Mi
$53,034
Median Household Income
$37,215
Median Earnings
$1,263
Median Rent
$271,100
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 separately metered residences offer refreshed interiors, fireplaces, and individual washer and dryer connections.
Where is this duplex located?
The property is located at 208a E Palestine Ave Madison, TN.
What is the asking price?
The asking price for this property is $390,000.
What are key features of this property?
This property features: Two‑unit duplex totaling 1,612 square feet; Each residence includes 2 bedrooms and 1 full bath; Separate water and sewer meters for the units
