9-Unit Apartment
For Sale
$1,100,000
412 Watauga Drive, Knoxville, TN 37918
North Knoxville asset includes a three-bedroom, two-bathroom residence with an attached garage and updated water and sewer lines.
Property Size4,160 SF
Days on Market51
Property Features for 412 Watauga Drive
General Information
Standard status
Active
Size
4,160 SF
Property subtype
Multi-Family
Additional Details
Average Monthly Rent
$1,057
Multifamily Units
9
Building Details
Building Size
4,160 SF
Year Built
1969
Units
9
Listing Agency:
SVN | Wood Properties
(865) 936-9999
Listed By:
Jon Roosen · License #366234
Source:
Commercialcafe
Added: Jul 13
Changed: Aug 30
Last Checked: Aug 31 at 1:28PM
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 SVN | Wood Properties
Investment Insights
Based on property information with market context.
Built in 1969, this apartment property includes nine units in Knoxville’s Fountain City area. An additional unrented residence provides three bedrooms, two bathrooms, and a connected garage. Water and sewer lines have been replaced, addressing a major infrastructure component of the property.
The asset is located at 412 Watauga Drive in North Knoxville, with access to Downtown Knoxville, nearby parks, greenways, retail, dining, and major routes. The property is included in a larger 129-unit portfolio that may be acquired together.
The asset is located at 412 Watauga Drive in North Knoxville, with access to Downtown Knoxville, nearby parks, greenways, retail, dining, and major routes. The property is included in a larger 129-unit portfolio that may be acquired together.
Key Highlights
- 9‑unit apartment property in Fountain City
- Additional unrented 3‑bedroom, 2‑bathroom unit with connected garage
- Water and sewer lines have been redone
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
$37,333
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
3.39%
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%
$746,660
$746.7K
Cap Rate 7%
$533,329
$533.3K
Cap Rate 9%
$414,811
$414.8K
Market Conditions
NOI Build-Up for 4,160 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
$73.4K $17.64/SF
− Vacancy
−$5.5K −$1.32/SF
EGI
$67.9K $16.32/SF
− OpEx
−$30.5K −$7.34/SF
NOI
$37.3K $8.97/SF
Area
Knoxville, TN
Vacancy
7.50%
Lease Rate
$17.64 /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%
$746,660
Cap Rate 7%
$533,329
Cap Rate 9%
$414,811
Alternative Uses
Best Use
Apartment 5plus
$533.3K
$466.7K – $622.2K
NOI $37,333 @ 7.0% cap · market cap 3.39%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.03M
$901.6K – $1.20M
NOI $72,124 @ 7.0% cap · market cap 6.56%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
9
Residential units
Location Intelligence
Trade Area within ½ mile
363
Businesses Nearby
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 Multifamily in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Apartment building - North Knoxville asset includes a three-bedroom, two-bathroom residence with an attached garage and updated water and sewer lines.
Where is this apartment building located?
The property is located at 412 Watauga Drive Knoxville, TN.
What is the asking price?
The asking price for this property is $1,100,000.
What are key features of this property?
This property features: 9‑unit apartment property in Fountain City; Additional unrented 3‑bedroom, 2‑bathroom unit with connected garage; Water and sewer lines have been redone
