Historic Mixed-Use Building For
For Sale
Contact for pricing
614 E Main St, Chattanooga, TN 37408
Eleven-unit mixed-use property with residential, STVR, and office spaces.
Property Size13,950 SF
Price / SF$344.09
Days on Market745
Property Features for 614 E Main St
General Information
Standard status
Active
Size
13,950 SF
Class
A
Property subtype
Mixed Use, Multifamily
Zoning
U-CX-3
Investment Type
Stabilized
Building Details
Year Built
1890
Year Renovated
2023
Buildings
1
Stories
2
Units
11
Listing Agency:
Tower Property Group, LLC
(423) 432-2990
Listed By:
Jon Hughes · License #TN 294692
Source:
Crexi
Added: Aug 9, 2024
Changed: Aug 21
Last Checked: Aug 22 at 6:07AM
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 Tower Property Group, LLC
Investment Insights
Based on property information with market context.
This mixed-use property features a total of 11 units, including 8 residential rentals, 2 short-term vacation rentals (STVRs), and 1 office space. The property has undergone a complete renovation of a historic building, including new plumbing, electrical, and mechanical systems. It is located on E Main Street, offering convenient access to downtown Chattanooga and major highways. Public transportation is readily available, enhancing accessibility for employees and clients. The surrounding area includes a mix of businesses, restaurants, and residential areas, contributing to a vibrant commercial environment. The property size is 13950 square feet.
Key Highlights
- Total renovation of a historic building including all new plumbing, electrical and mechanical.
- 11 Units total – 8 residential rentals, 2 STVRs, & 1 Office space.
- Highly desirable location for live/work/play.
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
$154,008
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
3.21%
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%
$3,080,160
$3.1M
Cap Rate 7%
$2,200,114
$2.2M
Cap Rate 9%
$1,711,200
$1.7M
Market Conditions
NOI Build-Up for 13,950 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
$267.8K $19.20/SF
− Vacancy
−$21.4K −$1.54/SF
EGI
$246.4K $17.66/SF
− OpEx
−$92.4K −$6.62/SF
NOI
$154.0K $11.04/SF
Area
Chattanooga, TN
Vacancy
8.00%
Lease Rate
$19.20 /SF/Yr
Expense Ratio
37.50%
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%
$3,080,160
Cap Rate 7%
$2,200,114
Cap Rate 9%
$1,711,200
Alternative Uses
Best Use
Mixed Use
$2.20M
$1.93M – $2.57M
NOI $154,008 @ 7.0% cap · market cap 3.21%
Second Best
Apartment 5plus
$1.76M
$1.54M – $2.05M
NOI $122,895 @ 7.0% cap · market cap 2.56%
Theoretical Best
Office A
$3.08M
$2.70M – $3.59M
NOI $215,665 @ 7.0% cap · market cap 4.49%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,292
Businesses Nearby
Explore this area
Business Placement
Demographics for 37408, TN
3,353
Population
1,945
Households
1.7
Avg Household Size
33
Median Age
59%
College-Educated
96%
High-School Grad
2.1 sq mi
ZIP Area
1,597
Density / Sq Mi
$91,000
Median Household Income
$65,377
Median Earnings
$1,338
Median Rent
$460,000
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?
Mixed-use property - Eleven-unit mixed-use property with residential, STVR, and office spaces.
Where is this mixed-use property located?
The property is located at 614 E Main St Chattanooga, TN.
What is the asking price?
The asking price for this property is $4,800,000.
What are key features of this property?
This property features: Total renovation of a historic building including all new plumbing, electrical and mechanical.; 11 Units total – 8 residential rentals, 2 STVRs, & 1 Office space.; Highly desirable location for live/work/play.
