Absolute Net-Leased Industrial
For Sale
Contact for pricing
7463 Bonnyshire Drive, Chattanooga, TN 37416
Industrial distribution facility in Chattanooga is fully occupied under an absolute net lease by Yangfeng USA.
Property Size231,625 SF
Price / SF$73.39
Days on Market51
Property Features for 7463 Bonnyshire Drive
General Information
Standard status
Active
Size
231,625 SF
Total Parking Spaces
150
Property subtype
Industrial
Occupancy
100%
Lease Type
Absolute Net
Investment Type
Net Lease
Net Operating Income
$1,126,342
Building Details
Year Built
1998
Year Renovated
2007
Buildings
1
Tenancy
Single
Listing Agency:
NAI Charter Real Estate
(423) 267-6549
Listed By:
Jeff Jennings · License #TN 295488
Source:
Crexi
Added: Jul 13
Changed: Aug 28
Last Checked: Aug 31 at 1:49PM
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 NAI Charter Real Estate
Investment Insights
Based on property information with market context.
7463 Bonnyshire Drive is a fully occupied industrial distribution facility offered for sale with an absolute net lease structure. The property is currently leased to Yangfeng USA, an automotive supplier focused on vehicle interior systems. The tenant has been operating for decades within a global manufacturing and engineering footprint.
The facility is positioned immediately off Bonny Oaks Drive and provides access to major transportation corridors, including Interstate 75. It is also located near Enterprise South Industrial Park and Chattanooga Metropolitan Airport, supporting regional and national distribution needs.
With the lease structure in place and a single operating tenant, the asset is presented as a hands-off industrial investment supported by long-term occupancy.
The facility is positioned immediately off Bonny Oaks Drive and provides access to major transportation corridors, including Interstate 75. It is also located near Enterprise South Industrial Park and Chattanooga Metropolitan Airport, supporting regional and national distribution needs.
With the lease structure in place and a single operating tenant, the asset is presented as a hands-off industrial investment supported by long-term occupancy.
Key Highlights
- 1998‑built industrial distribution facility in Chattanooga, TN, fully occupied by Yangfeng USA under an absolute net lease.
- Over 231,000 SF industrial asset leased to Yangfeng USA, an automotive supplier for vehicle interior systems.
- 6.63% CAP rate noted for the absolute net‑leased industrial asset.
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
$1,164,082
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
6.85%
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%
$23,281,640
$23.3M
Cap Rate 7%
$16,629,743
$16.6M
Cap Rate 9%
$12,934,244
$12.9M
Market Conditions
NOI Build-Up for 231,625 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
$1.72M $7.44/SF
− Vacancy
−$60.3K −$0.26/SF
EGI
$1.66M $7.18/SF
− OpEx
−$498.9K −$2.15/SF
NOI
$1.16M $5.03/SF
Area
Chattanooga, TN
Vacancy
3.50%
Lease Rate
$7.44 /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%
$23,281,640
Cap Rate 7%
$16,629,743
Cap Rate 9%
$12,934,244
Alternative Uses
Best Use
Industrial
$16.63M
$14.55M – $19.40M
NOI $1,164,082 @ 7.0% cap · market cap 6.85%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$51.16M
$44.76M – $59.68M
NOI $3,580,885 @ 7.0% cap · market cap 21.06%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
151
Businesses Nearby
Explore this area
Business Placement
Demographics for 37416, TN
14,844
Population
6,598
Households
2.2
Avg Household Size
42
Median Age
34%
College-Educated
94%
High-School Grad
20.5 sq mi
ZIP Area
724
Density / Sq Mi
$65,083
Median Household Income
$37,379
Median Earnings
$1,086
Median Rent
$229,600
Median Home Value
Market
Vacancy Rate% for Industrial in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Manufacturing property - Industrial distribution facility in Chattanooga is fully occupied under an absolute net lease by Yangfeng USA.
Where is this manufacturing property located?
The property is located at 7463 Bonnyshire Drive Chattanooga, TN.
What is the asking price?
The asking price for this property is $17,000,000.
What are key features of this property?
This property features: 1998‑built industrial distribution facility in Chattanooga, TN, fully occupied by Yangfeng USA under an absolute net lease.; Over 231,000 SF industrial asset leased to Yangfeng USA, an automotive supplier for vehicle interior systems.; 6.63% CAP rate noted for the absolute net‑leased industrial asset.
