Remodeled Apartment
For Sale
$575,000
508 E Central Ave, La Follette, TN 37766
Two-building multifamily property with updated interiors and active rentals near Norris Lake recreation.
Property Size4,040 SF
Price / SF$142.33
Days on Market38
Property Features for 508 E Central Ave
General Information
Standard status
Active
Size
4,040 SF
Property subtype
Multi-Family
Additional Details
Highway Access
Yes
Multifamily Units
8
Building Details
Year Built
1930
Buildings
2
Listing Agency:
United Real Estate Solutions
(865) 724-8106
Listed By:
Mark Hunter · License #375958
Source:
Fiddletreerealty
Added: Jul 24
Changed: Aug 29
Last Checked: Aug 25 at 4:32AM
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 United Real Estate Solutions
Investment Insights
Based on property information with market context.
This multifamily property comprises two buildings totaling 4,040 square feet. Originally built in 1930, the complex has undergone renovations with updated interiors and currently includes active rentals. The property offers an established apartment configuration without relying on the conflicting unit counts stated in the source information.
The address is in La Follette, near Norris Lake, ATV trails, camping, boating, and other outdoor recreation. Interstate access connects the property with La Follette shops, dining, and services. Its setting supports both conventional apartment occupancy and short-term rental use, as identified in the property information.
The address is in La Follette, near Norris Lake, ATV trails, camping, boating, and other outdoor recreation. Interstate access connects the property with La Follette shops, dining, and services. Its setting supports both conventional apartment occupancy and short-term rental use, as identified in the property information.
Key Highlights
- Two‑building apartment complex totaling 4,040 square feet
- Renovated interiors with active rentals in place
- Built in 1930
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
$36,256
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
6.31%
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%
$725,120
$725.1K
Cap Rate 7%
$517,943
$517.9K
Cap Rate 9%
$402,844
$402.8K
Market Conditions
NOI Build-Up for 4,040 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
$71.3K $17.64/SF
− Vacancy
−$5.3K −$1.32/SF
EGI
$65.9K $16.32/SF
− OpEx
−$29.7K −$7.34/SF
NOI
$36.3K $8.97/SF
Area
Campbell County, 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%
$725,120
Cap Rate 7%
$517,943
Cap Rate 9%
$402,844
Alternative Uses
Best Use
Apartment 5plus
$517.9K
$453.2K – $604.3K
NOI $36,256 @ 7.0% cap · market cap 6.31%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.00M
$875.6K – $1.17M
NOI $70,044 @ 7.0% cap · market cap 12.18%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
8
Residential units
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
391
Businesses Nearby
Explore this area
Business Placement
Demographics for 37766, TN
18,011
Population
9,721
Households
1.9
Avg Household Size
44
Median Age
12%
College-Educated
82%
High-School Grad
137.3 sq mi
ZIP Area
131
Density / Sq Mi
$46,692
Median Household Income
$31,379
Median Earnings
$747
Median Rent
$160,500
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 - Two-building multifamily property with updated interiors and active rentals near Norris Lake recreation.
Where is this apartment building located?
The property is located at 508 E Central Ave La Follette, TN.
What is the asking price?
The asking price for this property is $575,000.
What are key features of this property?
This property features: Two‑building apartment complex totaling 4,040 square feet; Renovated interiors with active rentals in place; Built in 1930
