Auto Shop Redevelopment Three-Parcel
For Sale
Contact for pricing
7900 Chapman Hwy, Knoxville, TN 37920
Auto-service redevelopment opportunity along a heavily traveled South Knoxville corridor with an active used tire shop building.
Property Size3,000 SF
Lot Size1.81 Acres
Price / SF$186.67
Days on Market62
Property Features for 7900 Chapman Hwy
General Information
Standard status
Active
Size
3,000 SF
Lot size
1.81 Acres
Property subtype
Retail
Zoning
CA
Investment Type
Redevelopment
Site & Location
Traffic Count
33,000 vehicles/day
Highway Access
Yes
Road Access
Yes
Land
Topography
varying
Land Use
commercial, residential
Building Details
Year Built
1940
Year Renovated
1965
Buildings
1
Stories
1
Tenancy
Single
Listing Agency:
Mike Fuller Realty & Company
Listed By:
Barrett Teller · License #383065
(601) 831-0075
Source:
Crexi
Added: Jul 16
Changed: Sep 9
Last Checked: Sep 15 at 7:27AM
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 Mike Fuller Realty & Company
Investment Insights
Based on property information with market context.
This three-parcel assemblage is an auto-service redevelopment or owner-user opportunity along the Chapman Highway / US-441 corridor. The offering includes an active used tire shop / retail building on Chapman Highway, an existing residential mobile home structure on the Kimberlin Heights side, and additional land area that may support future commercial redevelopment, expansion, or repositioning. The site is described as totaling approximately 1.81 acres, with the property size listed as 3,000 SF.
The assemblage benefits from visibility along a heavily traveled South Knoxville corridor with traffic counts exceeding 33,000 per day. The property includes varying topography and an on-site drainage feature or branch. Existing occupants operate on informal month-to-month arrangements, creating potential holding income while a buyer evaluates long-term plans. Tire shop inventory and shop equipment belong to the tenant and do not convey.
Buyers are encouraged to independently evaluate site conditions, access, utilities, zoning, development feasibility, and permitting requirements with Knox County and appropriate consultants. The property is sold as a combined three-parcel package, and tours are available by appointment with the listing agent. Do not contact the commercial or residential tenants.
The assemblage benefits from visibility along a heavily traveled South Knoxville corridor with traffic counts exceeding 33,000 per day. The property includes varying topography and an on-site drainage feature or branch. Existing occupants operate on informal month-to-month arrangements, creating potential holding income while a buyer evaluates long-term plans. Tire shop inventory and shop equipment belong to the tenant and do not convey.
Buyers are encouraged to independently evaluate site conditions, access, utilities, zoning, development feasibility, and permitting requirements with Knox County and appropriate consultants. The property is sold as a combined three-parcel package, and tours are available by appointment with the listing agent. Do not contact the commercial or residential tenants.
Key Highlights
- Three‑parcel assemblage for auto‑service redevelopment along Chapman Highway / US‑441
- Approximately 1.81 acres with visibility on a South Knoxville corridor
- Traffic counts exceed 33,000/day
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
$43,092
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
7.70%
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%
$861,840
$861.8K
Cap Rate 7%
$615,600
$615.6K
Cap Rate 9%
$478,800
$478.8K
Market Conditions
NOI Build-Up for 3,000 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
$64.8K $21.60/SF
− Vacancy
−$3.2K −$1.08/SF
EGI
$61.6K $20.52/SF
− OpEx
−$18.5K −$6.16/SF
NOI
$43.1K $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%
$861,840
Cap Rate 7%
$615,600
Cap Rate 9%
$478,800
Alternative Uses
Best Use
Retail
$615.6K
$538.7K – $718.2K
NOI $43,092 @ 7.0% cap · market cap 7.70%
Second Best
Industrial
$287.6K
$251.7K – $335.6K
NOI $20,135 @ 7.0% cap · market cap 3.60%
Theoretical Best
Office A
$743.0K
$650.2K – $866.9K
NOI $52,013 @ 7.0% cap · market cap 9.29%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Lease Details
33,000 VPD
Traffic count
Yes
Highway access
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
187
Businesses Nearby
Well-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
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
View Realmo Analytics
Market
Vacancy Rate% for Retail in Knoxville, TN
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Similar Off Market Nearby
- Chapman Enterprises Inc — 8028 Chapman Hwy, Knoxville, TN 37920
- PO Boys Used Tires — 7900 Chapman Hwy, Knoxville, TN 37920
- Knoxville tire — 7900 Chapman Hwy, Knoxville, TN 37920
- Valvoline Instant Oil Change — 7620 Chapman Hwy, Knoxville, TN 37920
- Express Oil Change & Tire Engineers — 7500 Chapman Hwy, Knoxville, TN 37920
Frequently Asked Questions
What type of property is this?
Auto shop - Auto-service redevelopment opportunity along a heavily traveled South Knoxville corridor with an active used tire shop building.
Where is this auto shop located?
The property is located at 7900 Chapman Hwy Knoxville, TN.
What is the asking price?
The asking price for this property is $560,000.
What are key features of this property?
This property features: Three‑parcel assemblage for auto‑service redevelopment along Chapman Highway / US‑441; Approximately 1.81 acres with visibility on a South Knoxville corridor; Traffic counts exceed 33,000/day
