Renovated Quadplex with Historic
For Sale
$697,000
602 Elm Ave, South Pittsburg, TN 37380
Four updated apartments retain original architectural details while offering modern kitchens, private laundry, parking, and shared outdoor space.
Property Size4,553 SF
Price / SF$153.09
Days on Market131
Property Features for 602 Elm Ave
General Information
Standard status
Active
Size
4,553 SF
Property subtype
Residential Income
Taxes and HOA fees
Annual Taxes
$4,756
Listing Agency:
Real Estate Partners Chattanooga LLC
(703) 764-0907
Listed By:
Diana Davies · License #356940
(703) 764-0907
Source:
Exprealty
Added: Apr 23
Changed: Aug 30
Last Checked: Aug 30 at 5:09PM
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.
Located at 602 Elm Ave in South Pittsburg, this four-unit apartment property occupies a former church that was converted approximately four years ago. The building retains soaring ceilings and original architectural elements, while the interiors provide contemporary residential functionality. Each apartment includes stainless steel appliances, LVP flooring, and an in-unit washer and dryer. Dedicated parking and shared outdoor space serve the residents.
The unit mix includes one three-bedroom, two-bath apartment; one two-bedroom, two-bath apartment; and two two-bedroom, one-bath apartments. The property is fully leased, with occupancy maintained since the renovation. Its combination of distinctive architectural features, updated finishes, and four separate residential units creates a multifamily configuration with a clear income-producing use.
The unit mix includes one three-bedroom, two-bath apartment; one two-bedroom, two-bath apartment; and two two-bedroom, one-bath apartments. The property is fully leased, with occupancy maintained since the renovation. Its combination of distinctive architectural features, updated finishes, and four separate residential units creates a multifamily configuration with a clear income-producing use.
Key Highlights
- 4‑unit apartment building converted from a former church approximately four years ago
- Unit mix includes 1 three‑bedroom/two‑bath and 3 two‑bedroom apartments
- Fully leased with occupancy maintained since renovation
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
$44,699
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
6.41%
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%
$893,980
$894.0K
Cap Rate 7%
$638,557
$638.6K
Cap Rate 9%
$496,656
$496.7K
Market Conditions
NOI Build-Up for 4,553 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
$68.3K $15.00/SF
− Vacancy
−$4.4K −$0.98/SF
EGI
$63.9K $14.03/SF
− OpEx
−$19.2K −$4.21/SF
NOI
$44.7K $9.82/SF
Area
Marion County, 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%
$893,980
Cap Rate 7%
$638,557
Cap Rate 9%
$496,656
Alternative Uses
Best Use
Multifamily LT 5
$638.6K
$558.7K – $745.0K
NOI $44,699 @ 7.0% cap · market cap 6.41%
Second Best
Apartment 5plus
$573.0K
$501.4K – $668.5K
NOI $40,110 @ 7.0% cap · market cap 5.75%
Theoretical Best
Office A
$1.01M
$879.9K – $1.17M
NOI $70,389 @ 7.0% cap · market cap 10.10%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
253
Businesses Nearby
Explore this area
Business Placement
Demographics for 37380, TN
6,305
Population
2,906
Households
2.2
Avg Household Size
45
Median Age
11%
College-Educated
80%
High-School Grad
126.2 sq mi
ZIP Area
50
Density / Sq Mi
$53,160
Median Household Income
$31,146
Median Earnings
$921
Median Rent
$185,000
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?
Quadplex - Four updated apartments retain original architectural details while offering modern kitchens, private laundry, parking, and shared outdoor space.
Where is this quadplex located?
The property is located at 602 Elm Ave South Pittsburg, TN.
What is the asking price?
The asking price for this property is $697,000.
What are key features of this property?
This property features: 4‑unit apartment building converted from a former church approximately four years ago; Unit mix includes 1 three‑bedroom/two‑bath and 3 two‑bedroom apartments; Fully leased with occupancy maintained since renovation
