Knoxville Mixed-Use Investment
For Sale
Contact for pricing
1501 White Ave, Knoxville, TN 37916
Two-story commercial property near University of Tennessee with expansion potential.
Property Size12,450 SF
Price / SF$377.51
Days on Market1137
Property Features for 1501 White Ave
General Information
Standard status
Active
Size
12,450 SF
Property subtype
Mixed Use, Office, Retail
Listing Agency:
NAI Koella | RM Moore
Listed By:
John Haney · License #TN 314412
(865) 777-3030
Source:
Crexi
Added: Jul 26, 2023
Changed: Sep 2
Last Checked: Sep 1 at 8:10PM
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 Koella | RM Moore
Investment Insights
Based on property information with market context.
This two-story commercial property presents a rare investment opportunity. It is located near the University of Tennessee and surrounded by student housing. The property consists of a street-level space of approximately 6,530 square feet and a terrace level of approximately 5,920 square feet, totaling approximately 12,450 square feet. There is potential for building additional commercial or residential floors, pending zoning and permitting approval. Measurements are approximate and should be independently verified by the buyer.
Key Highlights
- Rare investment opportunity near the University of Tennessee.
- Located one block from Cumberland Ave.
- Surrounded by student housing.
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
$178,832
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
3.80%
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%
$3,576,640
$3.6M
Cap Rate 7%
$2,554,743
$2.6M
Cap Rate 9%
$1,987,022
$2.0M
Market Conditions
NOI Build-Up for 12,450 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
$268.9K $21.60/SF
− Vacancy
−$13.4K −$1.08/SF
EGI
$255.5K $20.52/SF
− OpEx
−$76.6K −$6.16/SF
NOI
$178.8K $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%
$3,576,640
Cap Rate 7%
$2,554,743
Cap Rate 9%
$1,987,022
Alternative Uses
Best Use
Retail
$2.55M
$2.24M – $2.98M
NOI $178,832 @ 7.0% cap · market cap 3.80%
Second Best
Office B
$2.35M
$2.06M – $2.75M
NOI $164,714 @ 7.0% cap · market cap 3.50%
Theoretical Best
Office A
$3.08M
$2.70M – $3.60M
NOI $215,853 @ 7.0% cap · market cap 4.59%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
2,764
Businesses Nearby
Explore this area
Business Placement
Demographics for 37916, TN
14,400
Population
3,644
Households
4
Avg Household Size
21
Median Age
44%
College-Educated
90%
High-School Grad
1.4 sq mi
ZIP Area
10,286
Density / Sq Mi
$17,982
Median Household Income
$6,798
Median Earnings
$1,176
Median Rent
$270,000
Median Home Value
Market
Vacancy Rate% for Office in South region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Mixed-use property - Two-story commercial property near University of Tennessee with expansion potential.
Where is this mixed-use property located?
The property is located at 1501 White Ave Knoxville, TN.
What is the asking price?
The asking price for this property is $4,700,000.
What are key features of this property?
This property features: Rare investment opportunity near the University of Tennessee.; Located one block from Cumberland Ave.; Surrounded by student housing.
