Opportunity Zone Commercial
For Sale
$795,000
2437 Glass St, Chattanooga, TN 37406
Commercial building with over 8,000 sq ft, endless possibilities.
Property Size8,000 SF
Lot Size0.11 Acres
Price / SF$99.38
Days on Market707
Property Features for 2437 Glass St
General Information
Standard status
Active
Size
8,000 SF
Lot size
0.11 Acres
Taxes and HOA fees
Annual Taxes
$1,683
Listing Agency:
Bridge Real Estate Group
(423) 650-6856
Listed By:
Cristy Schuch · License #351771
(423) 650-6856
Source:
Exprealty
Added: Sep 4, 2024
Changed: Aug 8
Last Checked: Aug 8 at 6:01AM
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 Bridge Real Estate Group
Investment Insights
Based on property information with market context.
This commercial building, situated in a designated opportunity zone, presents an investment opportunity with over 8,000 square feet of space suitable for various uses, including office space, retail, or studios. The property offers possibilities for unique ventures like a distillery. Renovations were completed in phases. In April 2014, the section at 2435 Glass St underwent significant upgrades, including new windows, plumbing, a relined drain line, new electrical wiring and outlets, roof repairs, brick and mortar stabilization, and roof support replacements. Interior improvements included a new drop ceiling, light fixtures, insulation, carpet, and HVAC system, along with a new corner door and pull-down metal security doors. A new roof was added to this section of the building in June 2016. In August 2022, the section at 2437 Glass Street received new windows, lead abatement, brick and mortar stabilization, debris removal to the concrete slab/dirt floor, and a new roof. An opening at the back of the building offers potential for dock or loading access.
Key Highlights
- Located in a designated Opportunity Zone.
- Commercial building with over 8,000 sq ft of space.
- Extensive renovations completed in 2014, 2016, and 2022 including new roofs, windows, plumbing, electrical, HVAC, and more.**
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
$61,824
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
7.78%
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%
$1,236,480
$1.2M
Cap Rate 7%
$883,200
$883.2K
Cap Rate 9%
$686,933
$686.9K
Market Conditions
NOI Build-Up for 8,000 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
$96.0K $12.00/SF
− Vacancy
−$7.7K −$0.96/SF
EGI
$88.3K $11.04/SF
− OpEx
−$26.5K −$3.31/SF
NOI
$61.8K $7.73/SF
Area
Chattanooga, TN
Vacancy
8.00%
Lease Rate
$12.00 /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%
$1,236,480
Cap Rate 7%
$883,200
Cap Rate 9%
$686,933
Alternative Uses
Best Use
Office B
$1.31M
$1.15M – $1.53M
NOI $91,800 @ 7.0% cap · market cap 11.55%
Second Best
Retail
$883.2K
$772.8K – $1.03M
NOI $61,824 @ 7.0% cap · market cap 7.78%
Theoretical Best
Office A
$1.77M
$1.55M – $2.06M
NOI $123,679 @ 7.0% cap · market cap 15.56%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
384
Businesses Nearby
Explore this area
Business Placement
Demographics for 37406, TN
12,422
Population
5,894
Households
2.1
Avg Household Size
36
Median Age
16%
College-Educated
85%
High-School Grad
12.1 sq mi
ZIP Area
1,027
Density / Sq Mi
$42,993
Median Household Income
$31,076
Median Earnings
$944
Median Rent
$150,300
Median Home Value
Market
Vacancy Rate% for Office in South region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Retail space - Commercial building with over 8,000 sq ft, endless possibilities.
Where is this retail space located?
The property is located at 2437 Glass St Chattanooga, TN.
What is the asking price?
The asking price for this property is $795,000.
What are key features of this property?
This property features: Located in a designated Opportunity Zone.; Commercial building with over 8,000 sq ft of space.; Extensive renovations completed in 2014, 2016, and 2022 including new roofs, windows, plumbing, electrical, HVAC, and more.**
