Six-Unit Apartment
For Sale
$369,000
487 Williams Ave, Memphis, TN 38126
Multifamily property with refurbished units, updated sewer infrastructure, and a mix of occupied, transitioning, and vacant units.
Property Size4,200 SF
Price / SF$87.86
Days on Market450
Property Features for 487 Williams Ave
General Information
Standard status
Active
Size
4,200 SF
Property subtype
Residential Income
Additional Details
Multifamily Units
6
Listing Agency:
KAIZEN Realty, LLC
(662) 418-7511
Listed By:
Jeremy Veldman
(662) 418-7511
Source:
Exprealty
Added: May 22, 2025
Changed: Aug 11
Last Checked: Aug 13 at 9:01AM
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 KAIZEN Realty, LLC
Investment Insights
Based on property information with market context.
This 4,200-square-foot apartment building contains six units, with all units refurbished during the current ownership period. The sewer system was replaced in March 2025. Two units are occupied, two are expected to become available soon, and two are vacant and ready for move-in. Wall heaters require repair or replacement, and the property is being offered in its current condition.
Located at 487 Williams Ave in Memphis, Tennessee, the property is available with leases, rent rolls, and maintenance records upon request. Showings are available by appointment, with instructions to avoid disturbing current residents.
Located at 487 Williams Ave in Memphis, Tennessee, the property is available with leases, rent rolls, and maintenance records upon request. Showings are available by appointment, with instructions to avoid disturbing current residents.
Key Highlights
- Six‑unit apartment building totaling 4,200 square feet
- All 6 units refurbished during current ownership
- Sewer system replaced in March 2025
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
$31,361
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%
$627,220
$627.2K
Cap Rate 7%
$448,014
$448.0K
Cap Rate 9%
$348,456
$348.5K
Market Conditions
NOI Build-Up for 4,200 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
$61.0K $14.52/SF
− Vacancy
−$4.0K −$0.94/SF
EGI
$57.0K $13.58/SF
− OpEx
−$25.7K −$6.11/SF
NOI
$31.4K $7.47/SF
Area
Memphis, TN
Vacancy
6.50%
Lease Rate
$14.52 /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%
$627,220
Cap Rate 7%
$448,014
Cap Rate 9%
$348,456
Alternative Uses
Best Use
Apartment 5plus
$448.0K
$392.0K – $522.7K
NOI $31,361 @ 7.0% cap · market cap 8.50%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.24M
$1.09M – $1.45M
NOI $86,890 @ 7.0% cap · market cap 23.55%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
6
Residential units
Location Intelligence
Trade Area within ½ mile
598
Businesses Nearby
Explore this area
Business Placement
Demographics for 38126, TN
5,717
Population
3,260
Households
1.8
Avg Household Size
32
Median Age
14%
College-Educated
82%
High-School Grad
1.9 sq mi
ZIP Area
3,009
Density / Sq Mi
$30,825
Median Household Income
$32,396
Median Earnings
$794
Median Rent
$59,000
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 - Multifamily property with refurbished units, updated sewer infrastructure, and a mix of occupied, transitioning, and vacant units.
Where is this apartment building located?
The property is located at 487 Williams Ave Memphis, TN.
What is the asking price?
The asking price for this property is $369,000.
What are key features of this property?
This property features: Six‑unit apartment building totaling 4,200 square feet; All 6 units refurbished during current ownership; Sewer system replaced in March 2025
