Brick
New
For Sale
$350,000
4100 South Terrace, Chattanooga, TN 37412
Upper-level residences feature fireplaces, formal dining rooms, and bathrooms with partial updates.
Property Size2,940 SF
Days on Market4
Property Features for 4100 South Terrace
General Information
Standard status
Active
Size
2,940 SF
Property subtype
Triplex
Additional Details
Road Access
Yes
Multifamily Units
3
Taxes and HOA fees
Annual Taxes
$3,611
Amenities
woodburning fireplaces
covered front porches
enclosed back porches
paved parking lot
backyard
kitchen appliances
built-in storage
Building Details
Building Size
2,940 SF
Year Built
1941
Buildings
1
Construction
brick
Listing Agency:
Real Estate Partners Chattanooga LLC
Listed By:
Gil Patton · License #022287
(423) 667-6822
Source:
Gracefrankgroup
Added: Sep 24
Changed: Sep 26
Last Checked: Sep 26 at 3:00PM
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 Real Estate Partners Chattanooga LLC
Investment Insights
Based on property information with market context.
Built in 1941, this brick residential property contains three units. The upper apartments feature high ceilings, spacious living rooms, formal dining rooms, wood-burning fireplaces, and bathrooms with partial updates. Kitchen appliances are present, and interior flooring includes hardwood, carpet, and vinyl or linoleum. Wood built-ins provide storage and display areas.
Outdoor features include covered front porches with tile flooring, enclosed covered porches at the rear, and a grass backyard. A paved parking area is located behind the building. The property sits at the corner of South Terrace and Brookfield Avenue in Chattanooga. It is being sold in its current condition, with no repairs by the seller.
Outdoor features include covered front porches with tile flooring, enclosed covered porches at the rear, and a grass backyard. A paved parking area is located behind the building. The property sits at the corner of South Terrace and Brookfield Avenue in Chattanooga. It is being sold in its current condition, with no repairs by the seller.
Key Highlights
- Three‑unit brick residential property built in 1941
- Upper apartments have high ceilings, formal dining rooms, and wood‑burning fireplaces
- Kitchen appliances and wood built‑ins for storage and display
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
$28,863
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
8.25%
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%
$577,260
$577.3K
Cap Rate 7%
$412,329
$412.3K
Cap Rate 9%
$320,700
$320.7K
Market Conditions
NOI Build-Up for 2,940 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
$44.1K $15.00/SF
− Vacancy
−$2.9K −$0.98/SF
EGI
$41.2K $14.03/SF
− OpEx
−$12.4K −$4.21/SF
NOI
$28.9K $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%
$577,260
Cap Rate 7%
$412,329
Cap Rate 9%
$320,700
Alternative Uses
Best Use
Multifamily LT 5
$412.3K
$360.8K – $481.1K
NOI $28,863 @ 7.0% cap · market cap 8.25%
Second Best
Apartment 5plus
$370.0K
$323.8K – $431.7K
NOI $25,900 @ 7.0% cap · market cap 7.40%
Theoretical Best
Office A
$649.3K
$568.2K – $757.5K
NOI $45,452 @ 7.0% cap · market cap 12.99%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Current Use
Lease Details
3
Residential units
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
328
Businesses Nearby
Explore this area
Business Placement
Demographics for 37412, TN
21,881
Population
10,305
Households
2.1
Avg Household Size
39
Median Age
23%
College-Educated
86%
High-School Grad
8.7 sq mi
ZIP Area
2,515
Density / Sq Mi
$56,600
Median Household Income
$37,858
Median Earnings
$1,120
Median Rent
$182,600
Median Home Value
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Cap Rate, Value Estimation, Potential NOI and more
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Market
Vacancy Rate% for Multifamily in South region
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Frequently Asked Questions
What type of property is this?
Triplex - Upper-level residences feature fireplaces, formal dining rooms, and bathrooms with partial updates.
Where is this triplex located?
The property is located at 4100 South Terrace Chattanooga, TN.
What is the asking price?
The asking price for this property is $350,000.
What are key features of this property?
This property features: Three‑unit brick residential property built in 1941; Upper apartments have high ceilings, formal dining rooms, and wood‑burning fireplaces; Kitchen appliances and wood built‑ins for storage and display
