North Chattanooga Development
For Sale
Contact for pricing
620 Cherokee Blvd., Chattanooga, TN 37405
1.2-acre parcel suitable for multifamily/retail mixed-use development.
Property Size20,000 SF
Lot Size1.20 Acres
Price / SF$175
Days on Market1526
Property Features for 620 Cherokee Blvd.
General Information
Standard status
Active
Size
20,000 SF
Class
B
Lot size
1.20 Acres
Property subtype
Office
Zoning
Commercial
Occupancy
100%
Lease Type
Modified Gross
Building Details
Year Built
1960
Year Renovated
2001
Tenancy
Multi
Listing Agency:
RH Real Estate, LLC
Listed By:
Rusty Hall · License #TN 316344
Source:
Crexi
Added: Jun 20, 2022
Changed: Aug 21
Last Checked: Aug 22 at 1:38PM
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 RH Real Estate, LLC
Investment Insights
Based on property information with market context.
This 1.2-acre parcel in North Chattanooga presents a development opportunity. As the largest available parcel on Cherokee Blvd., the property is positioned for the development of multifamily or retail mixed-use projects. The site offers views of downtown and features over 200 feet of road frontage, with access from streets on both sides of the property. An existing office building on the premises currently generates income. The property includes office, retail, and flex space. The available space features a large open area, multiple private offices, a kitchen/break room, and a conference room. Onsite parking is available. Flex or warehouse space is also present, equipped with two rollup doors.
Key Highlights
- 1.2 Acre Parcel: Largest available on Cherokee Blvd.
- Development Potential: Suited for multifamily/retail mixed use.
- Excellent Downtown Views
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
$229,500
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
6.56%
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%
$4,590,000
$4.6M
Cap Rate 7%
$3,278,571
$3.3M
Cap Rate 9%
$2,550,000
$2.6M
Market Conditions
NOI Build-Up for 20,000 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
$360.0K $18.00/SF
− Vacancy
−$54.0K −$2.70/SF
EGI
$306.0K $15.30/SF
− OpEx
−$76.5K −$3.82/SF
NOI
$229.5K $11.48/SF
Area
Chattanooga, TN
Vacancy
15.00%
Lease Rate
$18.00 /SF/Yr
Expense Ratio
25.00%
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%
$4,590,000
Cap Rate 7%
$3,278,571
Cap Rate 9%
$2,550,000
Alternative Uses
Best Use
Office B
$3.28M
$2.87M – $3.83M
NOI $229,500 @ 7.0% cap · market cap 6.56%
Second Best
Mixed Use
$3.15M
$2.76M – $3.68M
NOI $220,800 @ 7.0% cap · market cap 6.31%
Theoretical Best
Office A
$4.42M
$3.86M – $5.15M
NOI $309,197 @ 7.0% cap · market cap 8.83%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
962
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 Office in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Mixed-use property - 1.2-acre parcel suitable for multifamily/retail mixed-use development.
Where is this mixed-use property located?
The property is located at 620 Cherokee Blvd. Chattanooga, TN.
What is the asking price?
The asking price for this property is $3,500,000.
What are key features of this property?
This property features: 1.2 Acre Parcel: Largest available on Cherokee Blvd.; Development Potential: Suited for multifamily/retail mixed use.; Excellent Downtown Views
