Historic Knoxville Fourplex Investment
For Sale
Contact for pricing
Pending
605 Gill Ave, Knoxville, TN 37917
Fourplex in historic district near downtown Knoxville with steady income.
Property Size3,164 SF
Days on Market737
Property Features for 605 Gill Ave
General Information
Standard status
Pending
Size
3,164 SF
Property subtype
Multifamily
Zoning
residential
Building Details
Year Built
1910
Year Renovated
2024
Buildings
1
Stories
2
Units
4
Listing Agency:
United Real Estate Solutions
(865) 300-6161
Listed By:
Shawn King · License #357087
Source:
Crexi
Added: Aug 26, 2024
Changed: Aug 21
Last Checked: Aug 31 at 3:26AM
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.
Located in Knoxville's 4th and Gill District, near Downtown Knoxville, this property offers a blend of historic charm and modern convenience. The property is a fourplex with a total area of 3,164 square feet. It features four units, each with one bedroom and one bathroom. The two downstairs units are currently leased for 12 months at $1000 and $1500 respectively, with one unit having a washer and dryer connection. The two upstairs units share an upstairs balcony and are leased for 12 months at $1250 each. Parking options include off-street, on-premise, and on-street parking, with room to create a parking pad in the rear of the property. The roof is 14 years old. The water heaters and AC units were replaced in 2023. The owner estimates that approximately $25,000 in improvements are needed. The owner is selling due to having three commercial projects planned for 2025.
Key Highlights
- Located in the highly desirable Historic 4th and Gill District near Downtown Knoxville.
- Four‑unit (4‑Plex) property generating steady rental income.
- Total of 3,164 sq ft with a mix of 1‑bed, 1‑bath units.
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
$30,857
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
4.20%
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%
$617,140
$617.1K
Cap Rate 7%
$440,814
$440.8K
Cap Rate 9%
$342,856
$342.9K
Market Conditions
NOI Build-Up for 3,164 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
$47.5K $15.00/SF
− Vacancy
−$3.4K −$1.07/SF
EGI
$44.1K $13.93/SF
− OpEx
−$13.2K −$4.18/SF
NOI
$30.9K $9.75/SF
Area
Knoxville, TN
Vacancy
7.12%
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%
$617,140
Cap Rate 7%
$440,814
Cap Rate 9%
$342,856
Alternative Uses
Best Use
Multifamily LT 5
$440.8K
$385.7K – $514.3K
NOI $30,857 @ 7.0% cap · market cap 4.20%
Second Best
Apartment 5plus
$405.6K
$354.9K – $473.3K
NOI $28,395 @ 7.0% cap · market cap 3.86%
Theoretical Best
Office A
$783.7K
$685.7K – $914.3K
NOI $54,856 @ 7.0% cap · market cap 7.46%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,212
Businesses Nearby
Explore this area
Business Placement
Demographics for 37917, TN
25,013
Population
14,216
Households
1.8
Avg Household Size
39
Median Age
31%
College-Educated
87%
High-School Grad
9.5 sq mi
ZIP Area
2,633
Density / Sq Mi
$51,232
Median Household Income
$37,853
Median Earnings
$1,063
Median Rent
$189,100
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 - Fourplex in historic district near downtown Knoxville with steady income.
Where is this quadplex located?
The property is located at 605 Gill Ave Knoxville, TN.
What is the asking price?
The asking price for this property is $735,000.
What are key features of this property?
This property features: Located in the highly desirable Historic 4th and Gill District near Downtown Knoxville.; Four‑unit (4‑Plex) property generating steady rental income.; Total of 3,164 sq ft with a mix of 1‑bed, 1‑bath units.
