Six-Unit Apartment
For Sale
$779,900
2818 Dayton Street Northwest, Knoxville, TN 37921
Fully leased residential property with one-bedroom layouts, recent roofing, and convenient access to Knoxville employment and amenities.
Property Size3,550 SF
Price / SF$219.69
Days on Market197
Property Features for 2818 Dayton Street Northwest
General Information
Standard status
Active
Size
3,550 SF
Property subtype
Multi-Family
Occupancy
100%
Units
Unit Mix
6 x 1BR/1BA
Multifamily Units
6
Additional Details
Highway Access
Yes
Taxes and HOA fees
Annual Taxes
$5,510
Amenities
Window Unit(s)
Yes
Laminate, Vinyl
True
Space Heater, Electric
Brick, Block
Building Details
Year Built
1969
Buildings
1
Listing Agency:
Southland Brokers
(865) 466-7240
Listed By:
Raj Cheema
Source:
Compass
Added: Feb 15
Changed: Aug 30
Last Checked: Aug 31 at 1:33AM
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 Southland Brokers
Investment Insights
Based on property information with market context.
This 3,550-square-foot apartment property contains six one-bedroom, one-bathroom units, all of which are currently leased. Built in 1969, the building has brick and block exterior construction, laminate and vinyl flooring, window units, and electric space heaters. A new roof was installed in 2021, and the main water line was replaced in 2024.
The property is located on Dayton Street Northwest in Knoxville, near Western Ave. Its setting provides access to Downtown Knoxville, I-640, restaurants, shopping, and area employers. The fully occupied configuration and consistent one-bedroom unit mix create a straightforward multifamily offering for an owner seeking an established rental property.
The property is located on Dayton Street Northwest in Knoxville, near Western Ave. Its setting provides access to Downtown Knoxville, I-640, restaurants, shopping, and area employers. The fully occupied configuration and consistent one-bedroom unit mix create a straightforward multifamily offering for an owner seeking an established rental property.
Key Highlights
- Six units, each with 1 bedroom and 1 bathroom
- 3,550 SF apartment property built in 1969
- All six units are currently leased
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
$31,859
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
4.09%
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%
$637,180
$637.2K
Cap Rate 7%
$455,129
$455.1K
Cap Rate 9%
$353,989
$354.0K
Market Conditions
NOI Build-Up for 3,550 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
$62.6K $17.64/SF
− Vacancy
−$4.7K −$1.32/SF
EGI
$57.9K $16.32/SF
− OpEx
−$26.1K −$7.34/SF
NOI
$31.9K $8.97/SF
Area
Knoxville, TN
Vacancy
7.50%
Lease Rate
$17.64 /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%
$637,180
Cap Rate 7%
$455,129
Cap Rate 9%
$353,989
Alternative Uses
Best Use
Apartment 5plus
$455.1K
$398.2K – $531.0K
NOI $31,859 @ 7.0% cap · market cap 4.09%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$879.3K
$769.4K – $1.03M
NOI $61,548 @ 7.0% cap · market cap 7.89%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
6
Residential units
100%
Occupancy
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
321
Businesses Nearby
Explore this area
Business Placement
Demographics for 37921, TN
28,903
Population
12,969
Households
2.2
Avg Household Size
35
Median Age
27%
College-Educated
87%
High-School Grad
15.9 sq mi
ZIP Area
1,818
Density / Sq Mi
$57,813
Median Household Income
$37,518
Median Earnings
$1,147
Median Rent
$204,300
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 - Fully leased residential property with one-bedroom layouts, recent roofing, and convenient access to Knoxville employment and amenities.
Where is this apartment building located?
The property is located at 2818 Dayton Street Northwest Knoxville, TN.
What is the asking price?
The asking price for this property is $779,900.
What are key features of this property?
This property features: Six units, each with 1 bedroom and 1 bathroom; 3,550 SF apartment property built in 1969; All six units are currently leased
