Industrial Redevelopment Opportunity in
For Sale
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4001 Bruhin Rd, Knoxville, TN 37918
2.97-acre site with 25,316 SF building near Happy Holler.
Property Size25,316 SF
Lot Size2.97 Acres
Price / SF$79
Days on Market179
Property Features for 4001 Bruhin Rd
General Information
Standard status
Active
Size
25,316 SF
Class
A
Lot size
2.97 Acres
Property subtype
Multifamily, Industrial, Mixed Use
Zoning
I-MU
Building Details
Year Built
1973
Buildings
2
Stories
2
Units
100
Listing Agency:
Wallace Commercial
(865) 690-1111
Listed By:
Justin West · License #384565
Source:
Crexi
Added: Feb 25
Changed: Aug 13
Last Checked: Aug 21 at 3:31PM
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 Wallace Commercial
Investment Insights
Based on property information with market context.
Located at 4001 Bruhin Road in North Knoxville, this industrial redevelopment property offers significant scale and interstate visibility near the I-640 / I-275 interchange. The 2.97-acre site includes a 25,316 SF building constructed in 1973. The building features varied ceiling heights, with the front section offering 13 to 14 ft clear heights suitable for flex or auto repair space, and the rear section, formerly a foundry, boasting over 30 ft clear heights. The property also includes two residences that can serve as on-site living quarters, event spaces, or professional offices. Zoned I-MU (Industrial Mixed-Use), the property is suitable for continued industrial use, large-scale events, or a destination brewery. Redevelopment into large multifamily is possible, subject to rezoning. The site can accommodate parking for over 100 vehicles with minor clearing and gravel. The property has full utilities, 3-phase power, grade-level doors, and roll-up access. The building currently generates cash flow from tenants and can be delivered vacant. It is located one mile from the Happy Holler district on Central Street, offering access to breweries, cafes, shops, and nightlife, as well as quick access to downtown and Fountain City.
Key Highlights
- Prime interstate visibility and location at the I‑640/I‑275 interchange.
- Massive 25,316 SF building with exceptionally high ceilings (30+ ft in rear foundry).
- I‑MU (Industrial Mixed‑Use) zoning allows for varied uses including industrial, events, brewery, or multifamily redevelopment (subject to rezoning).
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
$169,911
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
8.50%
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%
$3,398,220
$3.4M
Cap Rate 7%
$2,427,300
$2.4M
Cap Rate 9%
$1,887,900
$1.9M
Market Conditions
NOI Build-Up for 25,316 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
$258.2K $10.20/SF
− Vacancy
−$15.5K −$0.61/SF
EGI
$242.7K $9.59/SF
− OpEx
−$72.8K −$2.88/SF
NOI
$169.9K $6.71/SF
Area
Knoxville, TN
Vacancy
6.00%
Lease Rate
$10.20 /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%
$3,398,220
Cap Rate 7%
$2,427,300
Cap Rate 9%
$1,887,900
Alternative Uses
Best Use
Flex RnD
$3.15M
$2.75M – $3.67M
NOI $220,371 @ 7.0% cap · market cap 11.02%
Second Best
Industrial
$2.43M
$2.12M – $2.83M
NOI $169,911 @ 7.0% cap · market cap 8.50%
Theoretical Best
Office A
$6.27M
$5.49M – $7.32M
NOI $438,919 @ 7.0% cap · market cap 21.95%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
293
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 37918, TN
46,245
Population
20,228
Households
2.3
Avg Household Size
40
Median Age
31%
College-Educated
93%
High-School Grad
34.6 sq mi
ZIP Area
1,337
Density / Sq Mi
$69,311
Median Household Income
$41,882
Median Earnings
$1,102
Median Rent
$237,500
Median Home Value
Market
Vacancy Rate% for Industrial in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Flex space - 2.97-acre site with 25,316 SF building near Happy Holler.
Where is this flex space located?
The property is located at 4001 Bruhin Rd Knoxville, TN.
What is the asking price?
The asking price for this property is $2,000,000.
What are key features of this property?
This property features: Prime interstate visibility and location at the I‑640/I‑275 interchange.; Massive 25,316 SF building with exceptionally high ceilings (30+ ft in rear foundry).; I‑MU (Industrial Mixed‑Use) zoning allows for varied uses including industrial, events, brewery, or multifamily redevelopment (subject to rezoning).
