Freestanding Automotive
For Sale
Contact for pricing
6246 Chapman Highway, Knoxville, TN 37920
CH-2 zoning, an established automotive use, and substantial outdoor vehicle display space define the property.
Property Size1,059 SF
Lot Size0.55 Acres
Price / SF$368.27
Days on Market33
Property Features for 6246 Chapman Highway
General Information
Standard status
Active
Size
1,059 SF
Total Parking Spaces
100
Lot size
0.55 Acres
Property subtype
Retail
Zoning
C-H-2
Site & Location
Highway Access
Yes
Road Access
Yes
Outdoor Storage
Yes
Amenities
freestanding building
large outdoor display area
Building Details
Year Built
1950
Year Renovated
1980
Buildings
1
Stories
1
Listing Agency:
Wallace Commercial
Listed By:
Brett Richardson · License #306341
(865) 405-3525
Source:
Crexi
Added: Aug 11
Changed: Sep 8
Last Checked: Sep 12 at 7:16AM
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 Wallace Commercial
Investment Insights
Based on property information with market context.
This freestanding commercial building is currently configured as an automotive sales office and has served an established dealership for 41 years. The property includes approximately 0.546 acres, with a large paved or open lot capable of accommodating up to 100 vehicles for display or parking.
The site provides approximately 100 feet of frontage along Chapman Highway and is located about 5 miles from Downtown Knoxville and 6 miles from Seymour. CH-2 zoning allows flexibility for automotive, retail, and other commercial operations, subject to applicable requirements. The combination of an existing automotive-oriented building, highway frontage, and extensive outdoor area supports continued dealership use or another commercial application.
The site provides approximately 100 feet of frontage along Chapman Highway and is located about 5 miles from Downtown Knoxville and 6 miles from Seymour. CH-2 zoning allows flexibility for automotive, retail, and other commercial operations, subject to applicable requirements. The combination of an existing automotive-oriented building, highway frontage, and extensive outdoor area supports continued dealership use or another commercial application.
Key Highlights
- Approximately 0.546 acres with space for up to 100 vehicles
- Approximately 100 feet of frontage along Chapman Highway
- Currently used as an automotive sales office
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
$15,211
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
3.90%
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%
$304,220
$304.2K
Cap Rate 7%
$217,300
$217.3K
Cap Rate 9%
$169,011
$169.0K
Market Conditions
NOI Build-Up for 1,059 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
$22.9K $21.60/SF
− Vacancy
−$1.1K −$1.08/SF
EGI
$21.7K $20.52/SF
− OpEx
−$6.5K −$6.16/SF
NOI
$15.2K $14.36/SF
Area
Knoxville, TN
Vacancy
5.00%
Lease Rate
$21.60 /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%
$304,220
Cap Rate 7%
$217,300
Cap Rate 9%
$169,011
Alternative Uses
Best Use
Retail
$217.3K
$190.1K – $253.5K
NOI $15,211 @ 7.0% cap · market cap 3.90%
Second Best
Industrial
$101.5K
$88.9K – $118.5K
NOI $7,108 @ 7.0% cap · market cap 1.82%
Theoretical Best
Office A
$262.3K
$229.5K – $306.0K
NOI $18,361 @ 7.0% cap · market cap 4.71%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
Yes
Highway access
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
197
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 37920, TN
41,210
Population
20,180
Households
2
Avg Household Size
37
Median Age
34%
College-Educated
91%
High-School Grad
72.3 sq mi
ZIP Area
570
Density / Sq Mi
$61,348
Median Household Income
$35,591
Median Earnings
$1,092
Median Rent
$231,300
Median Home Value
Market
Vacancy Rate% for Retail in Knoxville, TN
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Automotive property - CH-2 zoning, an established automotive use, and substantial outdoor vehicle display space define the property.
Where is this automotive property located?
The property is located at 6246 Chapman Highway Knoxville, TN.
What is the asking price?
The asking price for this property is $390,000.
What are key features of this property?
This property features: Approximately 0.546 acres with space for up to 100 vehicles; Approximately 100 feet of frontage along Chapman Highway; Currently used as an automotive sales office
