Apartment Complex Near
For Sale
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665 E Pontotoc Ave, Memphis, TN 38126
Apartment complex near universities with redevelopment potential.
Property Size5,600 SF
Price / SF$115.89
Days on Market169
Property Features for 665 E Pontotoc Ave
General Information
Standard status
Active
Size
5,600 SF
Property subtype
Multifamily
Building Details
Year Built
1967
Listing Agency:
Braden, Braden & Braden CRE
(901) 881-2070
Listed By:
John Cornes, CCIM · License #303183
Source:
Crexi
Added: Mar 7
Changed: Aug 8
Last Checked: Aug 22 at 1:56PM
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 Braden, Braden & Braden CRE
Investment Insights
Based on property information with market context.
This property presents an opportunity to acquire an existing apartment complex situated within walking distance of Southwest Tennessee Community College, the University of Tennessee Health Science Center, and Downtown Memphis. The property offers potential for redevelopment as a value-add project or a new development. The surrounding area features over $1 billion in new and planned development. The complex consists of units with a two-bedroom, one-bathroom layout. The units are currently occupied by long-term, month-to-month tenants. A new roof and decking have been completed. The property size is 5,600 square feet.
Key Highlights
- Prime location: Walking distance to Southwest TN Comm College, University of TN Health Science Ctr., and Downtown Memphis.
- Significant development potential: Opportunity for value‑add redevelopment or a new project.
- High‑growth area: Over $1 Billion in new and planned development nearby.
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
$41,815
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
6.44%
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%
$836,300
$836.3K
Cap Rate 7%
$597,357
$597.4K
Cap Rate 9%
$464,611
$464.6K
Market Conditions
NOI Build-Up for 5,600 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
$81.3K $14.52/SF
− Vacancy
−$5.3K −$0.94/SF
EGI
$76.0K $13.58/SF
− OpEx
−$34.2K −$6.11/SF
NOI
$41.8K $7.47/SF
Area
Memphis, TN
Vacancy
6.50%
Lease Rate
$14.52 /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%
$836,300
Cap Rate 7%
$597,357
Cap Rate 9%
$464,611
Alternative Uses
Best Use
Apartment 5plus
$597.4K
$522.7K – $696.9K
NOI $41,815 @ 7.0% cap · market cap 6.44%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.66M
$1.45M – $1.93M
NOI $115,853 @ 7.0% cap · market cap 17.85%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
2,076
Businesses Nearby
Explore this area
Business Placement
Demographics for 38126, TN
5,717
Population
3,260
Households
1.8
Avg Household Size
32
Median Age
14%
College-Educated
82%
High-School Grad
1.9 sq mi
ZIP Area
3,009
Density / Sq Mi
$30,825
Median Household Income
$32,396
Median Earnings
$794
Median Rent
$59,000
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?
Apartment building - Apartment complex near universities with redevelopment potential.
Where is this apartment building located?
The property is located at 665 E Pontotoc Ave Memphis, TN.
What is the asking price?
The asking price for this property is $649,000.
What are key features of this property?
This property features: Prime location: Walking distance to Southwest TN Comm College, University of TN Health Science Ctr., and Downtown Memphis.; Significant development potential: Opportunity for value‑add redevelopment or a new project.; High‑growth area: Over $1 Billion in new and planned development nearby.
