Building Details

Year Built 1979

Buildings 2

Listing Agency: Merchant Real Estate Group

Listed By: Andrew Holt · License #329681 Show Phone

Source: Crexi

Added: May 27 Changed: Aug 27 Last Checked: Sep 12 at 4:20AM

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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 Merchant Real Estate Group

Investment Insights

Based on property information with market context.

This self-storage facility is offered for sale and includes approximately 5,964 square feet of space. The property is positioned to serve customers who need on-site storage solutions, with the facility configuration intended for self-storage operations.

Located at 3804 Taft Highway on Signal Mountain, the asset benefits from its placement within a mountain community. The provided remarks describe Signal Mountain as having a steady residential real estate market and limited self-storage availability in the immediate area.

For an owner-operator or investor, this offering may fit well for those looking to acquire a single self-storage facility in a market profile that, according to the seller’s comments, has comparatively constrained storage supply. Its straightforward use as a self-storage asset can also be appealing to buyers seeking a property centered on a single primary commercial function. Please note that the information provided does not include unit counts, sizes, occupancy levels, or operational details, so buyers should conduct appropriate due diligence regarding current income, expenses, and tenant/physical unit configuration before closing.

Key Highlights

• Self‑storage facility for sale on Signal Mountain
• Year built: 1979
• Market noted as having limited local self‑storage options

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

$52,076

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

5.79%

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%

$1,041,520 $1.0M

Cap Rate 7%

$743,943 $743.9K

Cap Rate 9%

$578,622 $578.6K

Market Conditions

NOI Build-Up for 5,964 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

$78.7K $13.20/SF

− Vacancy

−$4.3K −$0.73/SF

EGI

$74.4K $12.47/SF

− OpEx

−$22.3K −$3.74/SF

NOI

$52.1K $8.73/SF

Area

Hamilton County, TN

Vacancy

5.50%

Lease Rate

$13.20 /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%

$1,041,520

Cap Rate 7%

$743,943

Cap Rate 9%

$578,622

Alternative Uses

Best Use

Self Storage

$743.9K

$651.0K – $867.9K (±1% cap)

NOI $52,076 @ 7.0% cap · market cap 5.79%

Second Best

Industrial

$450.3K

$394.0K – $525.4K (±1% cap)

NOI $31,522 @ 7.0% cap · market cap 3.50%

Theoretical Best

Healthcare Medical

$990.4K

$866.6K – $1.16M (±1% cap)

NOI $69,327 @ 7.0% cap · market cap 7.70%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

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Current Use

Affordable Storage Guys ... Storage Facility

Suggested Use

Top Pick Real Estate Agency Law Firm Auto Parts Store Plumbing Service Storage Facility (Bike/Boat/Book/etc) Store

Score = modeled unmet demand for each use within ~1 mi (higher = bigger opportunity). Zoning and permitted uses should be independently verified with local authorities.

Location Intelligence

Trade Area within ½ mile

57

Businesses Nearby

Explore this area Business Placement

Demographics for 37377, TN

17,004

Population

6,726

Households

2.5

Avg Household Size

44

Median Age

60%

College-Educated

95%

High-School Grad

80.5 sq mi

ZIP Area

211

Density / Sq Mi

$115,959

Median Household Income

$65,869

Median Earnings

$1,389

Median Rent

$483,800

Median Home Value

Market

Vacancy Rate% for Industrial in South region

6% 2019

6.5% 2020

4% 2021

3.5% 2022

6% 2023

7.6% 2024

7.9% 2025

Questions? Ask Rey

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What type of property is this? Where is this self storage facilities located? What is the asking price? Find similar properties What are key features of this property?

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Frequently Asked Questions

What type of property is this?

Self storage facility - Self-storage facility for sale on Signal Mountain with a market described as having limited local storage options.

Where is this self storage facility located?

The property is located at 3804 Taft Highway Signal Mountain, TN.

What is the asking price?

The asking price for this property is $900,000.

What are key features of this property?

This property features: Self‑storage facility for sale on Signal Mountain; Year built: 1979; Market noted as having limited local self‑storage options