21-Unit Townhome Community Near
For Sale
$5,999,999
3729 Plaza Way, Pigeon Forge, TN 37863
Townhome community near Dollywood with multiple use options.
Property Size27,987 SF
Price / SF$214.39
Days on Market239
Property Features for 3729 Plaza Way
General Information
Standard status
Active
Size
27,987 SF
Property subtype
Multi-Family
Taxes and HOA fees
Annual Taxes
$19,651
Amenities
Central Cooling
Yes
Carpet
True
Heat Pump, Electric
Dishwasher, Dryer, Microwave, Range, Refrigerator, Washer
Frame
Building Details
Year Built
1984
Listing Agency:
PWA Properties
(865) 936-9999
Listed By:
Kevin G. Tipton · License #351465
Source:
Compass
Added: Dec 27, 2025
Changed: Aug 23
Last Checked: Aug 23 at 6:24AM
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 PWA Properties
Investment Insights
Based on property information with market context.
Pinecrest Townhomes is a 21-unit townhome community located in Pigeon Forge, TN, directly adjacent to Dollywood. The property currently operates as short-term rentals but offers multiple use options, including continued vacation rental operations, conversion to traditional apartments, or individual sale as condominium units. All units are two-bedroom, two-and-a-half-bath townhomes. The current owners have recently completed over $1.5 million of capital expenditures. Each unit features a washer and dryer, fireplace, and private balcony. The community includes a firepit and grilling area, as well as shared ownership in an adjacent HOA that provides access to the clubhouse and indoor swimming pool. Pinecrest Townhomes is situated in Pigeon Forge, Tennessee, a premier destination within the Great Smoky Mountains region. This area consistently ranks among the most visited in the United States, drawing over 13 million annual visitors to the Great Smoky Mountains National Park. The region’s tourism economy is supported by a diverse mix of attractions, including Dollywood, which is adjacent to the property. This property offers convenient access to Gatlinburg and the national park’s extensive trail systems, waterfalls, and scenic drives. The property size is 27987 square feet.
Key Highlights
- Directly adjacent to Dollywood, a major tourist attraction.
- 21‑unit townhome community with multiple use options: short‑term rentals, apartments, or condos.
- Recently completed $1.5 million in capital expenditures.
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
$207,803
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
3.46%
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%
$4,156,060
$4.2M
Cap Rate 7%
$2,968,614
$3.0M
Cap Rate 9%
$2,308,922
$2.3M
Market Conditions
NOI Build-Up for 27,987 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
$419.8K $15.00/SF
− Vacancy
−$42.0K −$1.50/SF
EGI
$377.8K $13.50/SF
− OpEx
−$170.0K −$6.08/SF
NOI
$207.8K $7.43/SF
Area
Sevier County, TN
Vacancy
10.00%
Lease Rate
$15.00 /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%
$4,156,060
Cap Rate 7%
$2,968,614
Cap Rate 9%
$2,308,922
Alternative Uses
Best Use
Apartment 5plus
$2.97M
$2.60M – $3.46M
NOI $207,803 @ 7.0% cap · market cap 3.46%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$11.80M
$10.33M – $13.77M
NOI $826,176 @ 7.0% cap · market cap 13.77%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
274
Businesses Nearby
Explore this area
Business Placement
Demographics for 37863, TN
6,988
Population
5,570
Households
1.3
Avg Household Size
40
Median Age
12%
College-Educated
74%
High-School Grad
17.2 sq mi
ZIP Area
406
Density / Sq Mi
$53,587
Median Household Income
$31,235
Median Earnings
$933
Median Rent
$253,400
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?
Short term rental property - Townhome community near Dollywood with multiple use options.
Where is this short term rental property located?
The property is located at 3729 Plaza Way Pigeon Forge, TN.
What is the asking price?
The asking price for this property is $5,999,999.
What are key features of this property?
This property features: Directly adjacent to Dollywood, a major tourist attraction.; 21‑unit townhome community with multiple use options: short‑term rentals, apartments, or condos.; Recently completed $1.5 million in capital expenditures.
