Renovated Multifamily Community in
For Sale
$15,375,000
2425 Atrium Way, Nashville, TN 37214
Newly renovated 123-unit multifamily community in Nashville, Tennessee.
Property Size60,608 SF
Days on Market194
Property Features for 2425 Atrium Way
General Information
Standard status
Active
Size
60,608 SF
Class
B
Property subtype
Multifamily
Building Details
Building Size
60,608 SF
Year Built
1985
Listing Agency:
SVN ACCEL COMMERCIAL REAL ESTATE
Listed By:
Kunal Patel, CCIM
(731) 613-5487
Source:
Svn
Added: Feb 26
Changed: Sep 7
Last Checked: Sep 8 at 4:33AM
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 SVN ACCEL COMMERCIAL REAL ESTATE
Investment Insights
Based on property information with market context.
Atrium Flats is a newly renovated 123-unit multifamily community located in the Merry Oaks neighborhood of Nashville, Tennessee. The property is strategically positioned between Downtown Nashville, the airport corridor, and Donelson. The community offers a mix of studio, one-bedroom, and two-bedroom units averaging 354 square feet. These units combine contemporary finishes with functional layouts. The property is designed to cater to working professionals, students, and service-sector tenants. The property was recently approved by MDHA for a voucher program, with potential rent increases for studios to $1602, one bedrooms to $1665, and two bedrooms to $1845. The property was newly renovated in 2024, presenting a turnkey opportunity. Current asking rents average $1,063 ($3.05/SF), below submarket averages of $1,438 ($3.21/SF). Studio and one-bedroom units comprise over 95% of the property mix. The property is operated by Elmington Property Management. It is located just off Briley Parkway and Elm Hill Pike, within 10 minutes of Downtown Nashville, Opry Mills, and Nashville International Airport.
Key Highlights
- Newly renovated in 2024, offering a turnkey investment.
- Approved for Section 8 voucher program, allowing potential rent increases.
- Located in the rapidly growing Merry Oaks neighborhood.
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
$706,063
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
4.59%
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%
$14,121,260
$14.1M
Cap Rate 7%
$10,086,614
$10.1M
Cap Rate 9%
$7,845,144
$7.8M
Market Conditions
NOI Build-Up for 60,608 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
$1.38M $22.80/SF
− Vacancy
−$98.1K −$1.62/SF
EGI
$1.28M $21.18/SF
− OpEx
−$577.7K −$9.53/SF
NOI
$706.1K $11.65/SF
Area
ZIP 37214
Vacancy
7.10%
Lease Rate
$22.80 /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%
$14,121,260
Cap Rate 7%
$10,086,614
Cap Rate 9%
$7,845,144
Alternative Uses
Best Use
Apartment 5plus
$10.09M
$8.83M – $11.77M
NOI $706,063 @ 7.0% cap · market cap 4.59%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$15.71M
$13.75M – $18.33M
NOI $1,099,672 @ 7.0% cap · market cap 7.15%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
204
Businesses Nearby
Explore this area
Business Placement
Demographics for 37214, TN
30,480
Population
15,526
Households
2
Avg Household Size
38
Median Age
46%
College-Educated
93%
High-School Grad
21.9 sq mi
ZIP Area
1,392
Density / Sq Mi
$71,969
Median Household Income
$48,583
Median Earnings
$1,567
Median Rent
$315,000
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?
Apartment building - Newly renovated 123-unit multifamily community in Nashville, Tennessee.
Where is this apartment building located?
The property is located at 2425 Atrium Way Nashville, TN.
What is the asking price?
The asking price for this property is $15,375,000.
What are key features of this property?
This property features: Newly renovated in 2024, offering a turnkey investment.; Approved for Section 8 voucher program, allowing potential rent increases.; Located in the rapidly growing Merry Oaks neighborhood.
