Two-Building Multifamily
For Sale
$425,000
4006 Memorial Blvd, Kingsport, TN 37664
Two apartment buildings totaling seven units offer immediate rental income and on-site storage space.
Property Size4,045 SF
Price / SF$105.07
Days on Market56
Property Features for 4006 Memorial Blvd
General Information
Standard status
Active
Size
4,045 SF
Financials
Cap Rate
8.7%
Business Included
Yes
Additional Details
Multifamily Units
7
Listing Agency:
CENTURY 21 Legacy Fort Henry
(423) 335-3937
Listed By:
Abigail Weaver · License #357811
(423) 335-3937
Source:
Exprealty
Added: Jul 7
Changed: Aug 28
Last Checked: Aug 29 at 3:40PM
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 CENTURY 21 Legacy Fort Henry
Investment Insights
Based on property information with market context.
This for-sale investment property includes two buildings with seven total units. The offering is described as providing immediate rental income, with remodeling underway in two vacant units. On-site improvements include an unfinished basement and a garage workshop, providing additional storage for day-to-day property management.
The sale includes both parcels identified as 062C E 017.00 and 062C E 018.00. The property notes TDOT road improvements on Hwy 126, with boundary lines already showing updated property borders that are expected to affect traffic patterns after the modifications.
Building 2 is reported to have a metal roof that is approximately two years old, while Building 1 is reported to have a metal roof approximately five years old. The property also notes some plumbing and electrical updates and currently occupied units with a reported good rental history. Buyer(s) and buyer’s agents should verify all information.
The sale includes both parcels identified as 062C E 017.00 and 062C E 018.00. The property notes TDOT road improvements on Hwy 126, with boundary lines already showing updated property borders that are expected to affect traffic patterns after the modifications.
Building 2 is reported to have a metal roof that is approximately two years old, while Building 1 is reported to have a metal roof approximately five years old. The property also notes some plumbing and electrical updates and currently occupied units with a reported good rental history. Buyer(s) and buyer’s agents should verify all information.
Key Highlights
- Two apartment buildings with 7 total units, offering immediate rental income
- 8.7% cap rate at full capacity
- Metal roof updates: Building 2 has a 2‑year‑old metal roof; Building 1 has a 5‑year‑old metal roof
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
$28,256
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
6.65%
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%
$565,120
$565.1K
Cap Rate 7%
$403,657
$403.7K
Cap Rate 9%
$313,956
$314.0K
Market Conditions
NOI Build-Up for 4,045 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
$54.4K $13.44/SF
− Vacancy
−$3.0K −$0.74/SF
EGI
$51.4K $12.70/SF
− OpEx
−$23.1K −$5.72/SF
NOI
$28.3K $6.99/SF
Area
Sullivan County, TN
Vacancy
5.50%
Lease Rate
$13.44 /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%
$565,120
Cap Rate 7%
$403,657
Cap Rate 9%
$313,956
Alternative Uses
Best Use
Apartment 5plus
$403.7K
$353.2K – $470.9K
NOI $28,256 @ 7.0% cap · market cap 6.65%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.51M
$1.33M – $1.77M
NOI $106,035 @ 7.0% cap · market cap 24.95%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
7
Residential units
Turnkey business
Opportunity
Location Intelligence
Trade Area within ½ mile
67
Businesses Nearby
Explore this area
Business Placement
Demographics for 37664, TN
28,748
Population
13,914
Households
2.1
Avg Household Size
44
Median Age
34%
College-Educated
92%
High-School Grad
33.9 sq mi
ZIP Area
848
Density / Sq Mi
$61,164
Median Household Income
$37,047
Median Earnings
$817
Median Rent
$204,900
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?
Apartment building - Two apartment buildings totaling seven units offer immediate rental income and on-site storage space.
Where is this apartment building located?
The property is located at 4006 Memorial Blvd Kingsport, TN.
What is the asking price?
The asking price for this property is $425,000.
What are key features of this property?
This property features: Two apartment buildings with 7 total units, offering immediate rental income; 8.7% cap rate at full capacity; Metal roof updates: Building 2 has a 2‑year‑old metal roof; Building 1 has a 5‑year‑old metal roof
