Mixed-Use Office and Retail
For Sale
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2401 BROAD ST, Chattanooga, TN 37408
Historic mixed-use building with multiple existing tenants and a currently available suite on Broad Street.
Property Size6,762 SF
Price / SF$347.53
Days on Market102
Property Features for 2401 BROAD ST
General Information
Standard status
Active
Size
6,762 SF
Class
B
Total Parking Spaces
28
Property subtype
Retail, Office
Zoning
C-MU1
Occupancy
50%
Lease Type
Modified Gross
Additional Details
Business Included
Yes
Building Details
Year Built
1910
Year Renovated
2012
Buildings
1
Stories
2
Units
4
Tenancy
Multi
Listing Agency:
Real Estate Partners Chattanooga LLC
Listed By:
Lee Brock · License #TN 338596
Source:
Crexi
Added: Jun 10
Changed: Sep 14
Last Checked: Sep 18 at 7:19AM
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 Estate Partners Chattanooga LLC
Investment Insights
Based on property information with market context.
The 1910 on Broad is a 6,762 SF mixed-use building built in 1910, offering space for office and storefront uses. The property includes multiple tenant suites, with three tenants already in place generating income, and one suite available for an owner-user to occupy or lease at market rate. The building also provides a total of 28 spaces between the lots, supporting on-site parking needs.
Located at 2401 Broad St in Chattanooga’s Southside on one of Broad Street’s active corridors, the building sits in the South Broad TIF District. The property’s established streetscape positioning is intended to support visibility and convenient access for everyday business activity and customer visits.
This offering is well-suited for an owner-user seeking a flexible mixed-use configuration with the ability to move into an available suite while leveraging existing occupancy. Buyers who prefer a straightforward setup can also consider the building as an income-producing property with additional leasing opportunities, supported by the on-site parking count of 28 spaces between the lots.
Located at 2401 Broad St in Chattanooga’s Southside on one of Broad Street’s active corridors, the building sits in the South Broad TIF District. The property’s established streetscape positioning is intended to support visibility and convenient access for everyday business activity and customer visits.
This offering is well-suited for an owner-user seeking a flexible mixed-use configuration with the ability to move into an available suite while leveraging existing occupancy. Buyers who prefer a straightforward setup can also consider the building as an income-producing property with additional leasing opportunities, supported by the on-site parking count of 28 spaces between the lots.
Key Highlights
- 1910 historic mixed‑use building totaling 6,762 SF on Broad Street in Chattanooga’s Southside
- 3 existing tenant suites generating income, with an additional suite currently available for an owner‑user or lease‑up
- Total of 28 parking spaces between the lots
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
$77,594
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
3.30%
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%
$1,551,880
$1.6M
Cap Rate 7%
$1,108,486
$1.1M
Cap Rate 9%
$862,156
$862.2K
Market Conditions
NOI Build-Up for 6,762 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
$121.7K $18.00/SF
− Vacancy
−$18.3K −$2.70/SF
EGI
$103.5K $15.30/SF
− OpEx
−$25.9K −$3.82/SF
NOI
$77.6K $11.48/SF
Area
Chattanooga, TN
Vacancy
15.00%
Lease Rate
$18.00 /SF/Yr
Expense Ratio
25.00%
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%
$1,551,880
Cap Rate 7%
$1,108,486
Cap Rate 9%
$862,156
Alternative Uses
Best Use
Office B
$1.11M
$969.9K – $1.29M
NOI $77,594 @ 7.0% cap · market cap 3.30%
Second Best
Retail
$746.5K
$653.2K – $871.0K
NOI $52,257 @ 7.0% cap · market cap 2.22%
Theoretical Best
Office A
$1.49M
$1.31M – $1.74M
NOI $104,539 @ 7.0% cap · market cap 4.45%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Lease Details
Turnkey business
Opportunity
Location Intelligence
Trade Area within ½ mile
937
Businesses Nearby
Explore this area
Business Placement
Demographics for 37408, TN
3,353
Population
1,945
Households
1.7
Avg Household Size
33
Median Age
59%
College-Educated
96%
High-School Grad
2.1 sq mi
ZIP Area
1,597
Density / Sq Mi
$91,000
Median Household Income
$65,377
Median Earnings
$1,338
Median Rent
$460,000
Median Home Value
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Market
Vacancy Rate% for Office in South region
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Frequently Asked Questions
What type of property is this?
Office building - Historic mixed-use building with multiple existing tenants and a currently available suite on Broad Street.
Where is this office building located?
The property is located at 2401 BROAD ST Chattanooga, TN.
What is the asking price?
The asking price for this property is $2,350,000.
What are key features of this property?
This property features: 1910 historic mixed‑use building totaling 6,762 SF on Broad Street in Chattanooga’s Southside; 3 existing tenant suites generating income, with an additional suite currently available for an owner‑user or lease‑up; Total of 28 parking spaces between the lots
