Updated Two-Unit
New
For Sale
$270,000
3975 Arbor Place Lane, Chattanooga, TN 37416
Residential duplex with refreshed roofing and HVAC systems serving a straightforward rental layout.
Property Size1,920 SF
Days on Market4
Property Features for 3975 Arbor Place Lane
General Information
Standard status
Active
Size
1,920 SF
Property subtype
Duplex
Taxes and HOA fees
Annual Taxes
$3,704
Building Details
Building Size
1,920 SF
Year Built
1967
Listing Agency:
Keller Williams Realty
Listed By:
Jake Kellerhals · License #325426
(706) 217-8133
Source:
Gracefrankgroup
Added: Sep 2
Changed: Sep 4
Last Checked: Sep 4 at 3:20PM
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 Keller Williams Realty
Investment Insights
Based on property information with market context.
This residential duplex was built in 1967 and contains two separate units, each arranged with two bedrooms and one bathroom. The property combines a simple floor plan with recent updates to major building systems, including a roof installed in 2018 and HVAC systems installed in 2024.
Located in Chattanooga, the property is positioned on Arbor Place Lane with access to daily essentials. Its two-unit configuration and updated mechanical components provide a practical format for residential rental ownership.
Located in Chattanooga, the property is positioned on Arbor Place Lane with access to daily essentials. Its two-unit configuration and updated mechanical components provide a practical format for residential rental ownership.
Key Highlights
- Two‑unit duplex with two bedrooms and one bathroom per unit
- Roof installed in 2018
- HVAC systems installed in 2024
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
$18,850
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
6.98%
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%
$377,000
$377.0K
Cap Rate 7%
$269,286
$269.3K
Cap Rate 9%
$209,444
$209.4K
Market Conditions
NOI Build-Up for 1,920 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
$28.8K $15.00/SF
− Vacancy
−$1.9K −$0.98/SF
EGI
$26.9K $14.03/SF
− OpEx
−$8.1K −$4.21/SF
NOI
$18.8K $9.82/SF
Area
Chattanooga, TN
Vacancy
6.50%
Lease Rate
$15.00 /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%
$377,000
Cap Rate 7%
$269,286
Cap Rate 9%
$209,444
Alternative Uses
Best Use
Multifamily LT 5
$269.3K
$235.6K – $314.2K
NOI $18,850 @ 7.0% cap · market cap 6.98%
Second Best
Apartment 5plus
$241.6K
$211.4K – $281.9K
NOI $16,915 @ 7.0% cap · market cap 6.26%
Theoretical Best
Office A
$424.0K
$371.0K – $494.7K
NOI $29,683 @ 7.0% cap · market cap 10.99%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
500
Businesses Nearby
Explore this area
Business Placement
Demographics for 37416, TN
14,844
Population
6,598
Households
2.2
Avg Household Size
42
Median Age
34%
College-Educated
94%
High-School Grad
20.5 sq mi
ZIP Area
724
Density / Sq Mi
$65,083
Median Household Income
$37,379
Median Earnings
$1,086
Median Rent
$229,600
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?
Duplex - Residential duplex with refreshed roofing and HVAC systems serving a straightforward rental layout.
Where is this duplex located?
The property is located at 3975 Arbor Place Lane Chattanooga, TN.
What is the asking price?
The asking price for this property is $270,000.
What are key features of this property?
This property features: Two‑unit duplex with two bedrooms and one bathroom per unit; Roof installed in 2018; HVAC systems installed in 2024
