Established Retail Building For
For Sale
$3,118,000
7804 Montvue Center Way, Knoxville, TN 37919
Retail building with established tenants, Anytime Fitness and Big Kahuna.
Property Size10,800 SF
Price / SF$288.70
Days on Market158
Property Features for 7804 Montvue Center Way
General Information
Standard status
Active
Size
10,800 SF
Property subtype
Shopping Strip
Amenities
Located On the Main Retail Corridor, Surrounded by Major Retailers and Adjacent to the Newly Renovated West Town Mall, the Largest Mall in Tennessee at Over 1.3 Million Square Feet
Easily Accessible from I-40 with Traffic Counts of Over 178,000 VPD
Anytime Fitness is Operated by a Seasoned Franchisee with Over 60 Locations Nationwide
Each Tenant is on a Separate Parcel, Contiguous with Back Nine, a National Indoor Golf Concept with 200+ Locations
Average Household Income of Over $114,000
Building Details
Building Size
10,800 SF
Year Built
1972
Listing Agency:
Fort Lauderdale Office
(954) 245-3400
Listed By:
David E. Gant · License #FL: SL 671779, NC: LC153
(954) 245-3446
Source:
Marcusmillichap
Added: Apr 3
Changed: Aug 31
Last Checked: Sep 7 at 4:40AM
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 Fort Lauderdale Office
Investment Insights
Based on property information with market context.
This well-located and attractive building is available for sale and currently houses two established NNN tenants: Anytime Fitness and Big Kahuna Wings. The property is suitable for commercial real estate, including retail, strip malls, fitness centers and gyms, sports and entertainment venues, and restaurants. The building has a total size of 10800 square feet.
Key Highlights
- Two established NNN tenants offer a stable investment.
- Attractive building.
- Anytime Fitness is a tenant.
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
$155,131
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
4.98%
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%
$3,102,620
$3.1M
Cap Rate 7%
$2,216,157
$2.2M
Cap Rate 9%
$1,723,678
$1.7M
Market Conditions
NOI Build-Up for 10,800 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
$233.3K $21.60/SF
− Vacancy
−$11.7K −$1.08/SF
EGI
$221.6K $20.52/SF
− OpEx
−$66.5K −$6.16/SF
NOI
$155.1K $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%
$3,102,620
Cap Rate 7%
$2,216,157
Cap Rate 9%
$1,723,678
Alternative Uses
Best Use
Retail
$2.22M
$1.94M – $2.59M
NOI $155,131 @ 7.0% cap · market cap 4.98%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$2.67M
$2.34M – $3.12M
NOI $187,246 @ 7.0% cap · market cap 6.01%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,236
Businesses Nearby
Explore this area
Business Placement
Demographics for 37919, TN
30,822
Population
15,499
Households
2
Avg Household Size
38
Median Age
58%
College-Educated
95%
High-School Grad
19.1 sq mi
ZIP Area
1,614
Density / Sq Mi
$71,863
Median Household Income
$44,968
Median Earnings
$1,247
Median Rent
$453,000
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?
Strip mall - Retail building with established tenants, Anytime Fitness and Big Kahuna.
Where is this strip mall located?
The property is located at 7804 Montvue Center Way Knoxville, TN.
What is the asking price?
The asking price for this property is $3,118,000.
What are key features of this property?
This property features: Two established NNN tenants offer a stable investment.; Attractive building.; Anytime Fitness is a tenant.
