Four-Unit Townhome-Style
For Sale
$1,250,000
721715 Ladd Avenue, Chattanooga, TN 37405
Four leased townhome-style residences offer contemporary layouts, private outdoor space, and individual garages near downtown Chattanooga.
Property Size5,648 SF
Days on Market37
Property Features for 721715 Ladd Avenue
General Information
Standard status
Active
Size
5,648 SF
Total Parking Spaces
2
Property subtype
Residential Income
Occupancy
100%
Units
Unit Mix
4 x 3BR/2.5BA
Multifamily Units
4
Additional Details
Gross Income
$97,968
Taxes and HOA fees
Annual Taxes
$13,231
Building Details
Building Size
5,648 SF
Year Built
2016
Stories
2
Units
4
Tenancy
Multi
Listing Agency:
Greater Downtown Realty dba Keller Williams Realty
(224) 456-7423
Listed By:
Bri Goodrich · License #362043
(224) 456-7423
Source:
Reason4homes
Added: Jul 17
Changed: Aug 21
Last Checked: Aug 21 at 2:31PM
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 Greater Downtown Realty dba Keller Williams Realty
Investment Insights
Based on property information with market context.
This 2016-built quadplex comprises four townhome-style residences at 715, 717, 721, and 723 Ladd Ave. Each unit includes three bedrooms, two and one-half bathrooms, a one-car garage, and a private deck. The property is described as well maintained and all four residences are currently leased, with lease terms extending into 2027.
Located in North Chattanooga, the property is minutes from downtown Chattanooga and near restaurants, shopping, entertainment, major employers, hospitals, and outdoor recreation. The four-unit configuration provides a consolidated multifamily asset with contemporary residential improvements and established occupancy.
Located in North Chattanooga, the property is minutes from downtown Chattanooga and near restaurants, shopping, entertainment, major employers, hospitals, and outdoor recreation. The four-unit configuration provides a consolidated multifamily asset with contemporary residential improvements and established occupancy.
Key Highlights
- Four‑unit quadplex at 715, 717, 721, and 723 Ladd Ave
- Built in 2016 and described as well maintained
- Each unit has 3 bedrooms and 2.5 bathrooms
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
$55,449
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
4.44%
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%
$1,108,980
$1.1M
Cap Rate 7%
$792,129
$792.1K
Cap Rate 9%
$616,100
$616.1K
Market Conditions
NOI Build-Up for 5,648 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
$84.7K $15.00/SF
− Vacancy
−$5.5K −$0.98/SF
EGI
$79.2K $14.03/SF
− OpEx
−$23.8K −$4.21/SF
NOI
$55.4K $9.82/SF
Area
Chattanooga, 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%
$1,108,980
Cap Rate 7%
$792,129
Cap Rate 9%
$616,100
Alternative Uses
Best Use
Multifamily LT 5
$792.1K
$693.1K – $924.2K
NOI $55,449 @ 7.0% cap · market cap 4.44%
Second Best
Apartment 5plus
$710.8K
$622.0K – $829.3K
NOI $49,757 @ 7.0% cap · market cap 3.98%
Theoretical Best
Office A
$1.25M
$1.09M – $1.46M
NOI $87,317 @ 7.0% cap · market cap 6.99%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
4
Residential units
100%
Occupancy
Multi-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
340
Businesses Nearby
Explore this area
Business Placement
Demographics for 37405, TN
18,231
Population
9,959
Households
1.8
Avg Household Size
36
Median Age
53%
College-Educated
92%
High-School Grad
54.3 sq mi
ZIP Area
336
Density / Sq Mi
$77,850
Median Household Income
$51,748
Median Earnings
$1,276
Median Rent
$416,900
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 leased townhome-style residences offer contemporary layouts, private outdoor space, and individual garages near downtown Chattanooga.
Where is this quadplex located?
The property is located at 721715 Ladd Avenue Chattanooga, TN.
What is the asking price?
The asking price for this property is $1,250,000.
What are key features of this property?
This property features: Four‑unit quadplex at 715, 717, 721, and 723 Ladd Ave; Built in 2016 and described as well maintained; Each unit has 3 bedrooms and 2.5 bathrooms
