Building Details

Building Size 3,888 SF

Year Built 1972

Construction brick

Listing Agency: Keller Williams Realty g***@tghomeschatt.com Show Phone

Listed By: Gina Shumway · License #TN373412 Show Phone

Source: Gracefrankgroup

Added: Aug 13 Changed: Aug 17 Last Checked: Aug 29 at 3:08PM

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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 Keller Williams Realty

Investment Insights

Based on property information with market context.

This 6-unit apartment building was constructed in 1972 with a brick exterior designed for low-maintenance ownership. The unit mix includes two 2-bedroom, 1-bath apartments and four 1-bedroom, 1-bath apartments. One unit is currently vacant, while the remaining units are occupied. Each apartment has its own utility meter, and tenants pay their individual utilities; the owner is responsible for trash service.

The property is outside the Cleveland city limits, with county-only property taxes. It is located near I-75 and within reach of Cleveland and Chattanooga. The available unit may be viewed, while access to occupied units is limited until the property is under contract. Tenant privacy requirements apply, and occupants should not be disturbed.

Key Highlights

• 6‑unit apartment building constructed in 1972
• Unit mix includes two 2‑bedroom, 1‑bath units and four 1‑bedroom, 1‑bath units
• Individually metered apartments with tenant‑paid utilities

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

$28,915

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

4.83%

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%

$578,300 $578.3K

Cap Rate 7%

$413,071 $413.1K

Cap Rate 9%

$321,278 $321.3K

Market Conditions

NOI Build-Up for 3,888 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

$56.0K $14.40/SF

− Vacancy

−$3.4K −$0.88/SF

EGI

$52.6K $13.52/SF

− OpEx

−$23.7K −$6.08/SF

NOI

$28.9K $7.44/SF

Area

Bradley County, TN

Vacancy

6.10%

Lease Rate

$14.40 /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%

$578,300

Cap Rate 7%

$413,071

Cap Rate 9%

$321,278

Alternative Uses

Best Use

Apartment 5plus

$413.1K

$361.4K – $481.9K (±1% cap)

NOI $28,915 @ 7.0% cap · market cap 4.83%

Second Best

—

—

no second resolved use

Theoretical Best

Office A

$815.8K

$713.8K – $951.8K (±1% cap)

NOI $57,107 @ 7.0% cap · market cap 9.53%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Current Use

Apartment buildings

Suggested Use

Top Pick Grocery & Convenience Store Storage Facility Bakery Parking Lot & Garage Big Box & Wholesale Store Daycare Center

Score = modeled unmet demand for each use within ~1 mi (higher = bigger opportunity). Zoning and permitted uses should be independently verified with local authorities.

Lease Details

6

Residential units

Yes

Highway access

Location Intelligence

Trade Area within ½ mile

52

Businesses Nearby

Explore this area Business Placement

Demographics for 37353, TN

5,168

Population

2,081

Households

2.5

Avg Household Size

44

Median Age

30%

College-Educated

90%

High-School Grad

40.5 sq mi

ZIP Area

128

Density / Sq Mi

$66,186

Median Household Income

$42,923

Median Earnings

$976

Median Rent

$221,000

Median Home Value

Market

Vacancy Rate% for Multifamily in South region

8.5% 2022

10.2% 2023

11.4% 2024

11.3% 2025

Questions? Ask Rey

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Frequently Asked Questions

What type of property is this?

Apartment building - Individually metered units support separate tenant utility billing.

Where is this apartment building located?

The property is located at 578 Withrow Road McDonald Mc Donald, TN.

What is the asking price?

The asking price for this property is $599,000.

What are key features of this property?

This property features: 6‑unit apartment building constructed in 1972; Unit mix includes two 2‑bedroom, 1‑bath units and four 1‑bedroom, 1‑bath units; Individually metered apartments with tenant‑paid utilities