5-Unit Townhouse Apartment
New
For Sale
$899,900
2861 Michigan Ave Road NE, Cleveland, TN 37323
MULTI_FAMILY - Cleveland, TN
Property Size4,948 SF
Price / SF$181.87
Days on Market1
Property Features for 2861 Michigan Ave Road NE
General Information
Property type
Residential Multi Family
Property subtype
Quadruplex
Bathrooms
3
Full bathrooms
2
Half bathrooms
1
Rooms
Bathroom 3, Bathroom 2, Bathroom 1
Patio and Porch features
Deck
Interior features
Open Floorplan
Basement
Crawl Space
Appliances
Dishwasher, Electric Range, Refrigerator
Lot features
Cleared, Cleared
Elementary school
Mayfield
Middle school
Cleveland
High school
Cleveland
Directions
From I-75 take Paul huff parkway all the way to Stuart Rd and continue all the way to Michigan Avenue. Take a right onto Michigan Avenue and the property is on the right.
Standard status
Active
APN
050l B 017.00
Size
4,948 SF
Taxes and HOA fees
Tax Annual Amount
1393
Utilities
Sewer type
Public Sewer
Heating system
Central
Cooling system
Central Air
Water source
Public
Building Details
Year built
1997
Floors in Building
2
Number of units
5
Flooring type
Laminate
Building materials
Brick Veneer, Vinyl Siding
Roof type
Shingle
Listing Agency:
RE/MAX Experience
(423) 790-3086
Listed By:
Sommer Oder · License #329188
(423) 790-6592
Added: Aug 12
Last Checked: Aug 12 at 5:06PM
MLS# 20264175
Copyright © 2026 River Counties Association of Realtors. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
This 5-unit apartment property contains townhouse-style residences totaling 4948 square feet. Each unit includes 2 bedrooms and 1.5 bathrooms, with open floorplans, laminate flooring, central heating and cooling, a dishwasher, electric range, refrigerator, and deck. Brick veneer and vinyl siding complement the 1997 construction, while public water and public sewer serve the property.
All five units are currently occupied, providing an established tenant base. The property is located in Cleveland, Tennessee, near shopping, restaurants, schools, and other everyday services. Its residential configuration and existing occupancy support continued use as a multifamily rental asset.
All five units are currently occupied, providing an established tenant base. The property is located in Cleveland, Tennessee, near shopping, restaurants, schools, and other everyday services. Its residential configuration and existing occupancy support continued use as a multifamily rental asset.
Key Highlights
- Five 2‑bedroom, 1.5‑bath townhouse units
- All 5 units are currently occupied
- 4948 square feet of total property size
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
$36,798
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%
$735,960
$736.0K
Cap Rate 7%
$525,686
$525.7K
Cap Rate 9%
$408,867
$408.9K
Market Conditions
NOI Build-Up for 4,948 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
$71.3K $14.40/SF
− Vacancy
−$4.3K −$0.88/SF
EGI
$66.9K $13.52/SF
− OpEx
−$30.1K −$6.08/SF
NOI
$36.8K $7.44/SF
Area
Bradley County, TN
Vacancy
6.10%
Lease Rate
$14.40 /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%
$735,960
Cap Rate 7%
$525,686
Cap Rate 9%
$408,867
Alternative Uses
Best Use
Apartment 5plus
$525.7K
$460.0K – $613.3K
NOI $36,798 @ 7.0% cap · market cap 4.09%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.04M
$908.5K – $1.21M
NOI $72,676 @ 7.0% cap · market cap 8.08%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
5
Residential units
100%
Occupancy
Location Intelligence
Trade Area within ½ mile
123
Businesses Nearby
Explore this area
Business Placement
Demographics for 37323, TN
31,497
Population
12,841
Households
2.5
Avg Household Size
41
Median Age
18%
College-Educated
88%
High-School Grad
114.6 sq mi
ZIP Area
275
Density / Sq Mi
$67,538
Median Household Income
$41,922
Median Earnings
$908
Median Rent
$213,900
Median Home Value
Market
Vacancy Rate% for Multifamily 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?
Apartment building - Fully occupied residences offer townhouse-style layouts, open floorplans, and convenient access to everyday amenities.
Where is this apartment building located?
The property is located at 2861 Michigan Ave Road NE Cleveland, TN.
What is the asking price?
The asking price for this property is $899,900.
What are key features of this property?
This property features: Five 2‑bedroom, 1.5‑bath townhouse units; All 5 units are currently occupied; 4948 square feet of total property size
