Medical Office Space For
For Sale
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2400 McCallie Ave, Chattanooga, TN 37404
Prime commercial location ideal for medical use near Parkridge Hospital.
Property Size4,048 SF
Lot Size0.33 Acres
Price / SF$250
Days on Market961
Property Features for 2400 McCallie Ave
General Information
Standard status
Active
Size
4,048 SF
Lot size
0.33 Acres
Property subtype
Mixed Use, Office, Retail
Zoning
C-2
Building Details
Year Built
1935
Listing Agency:
The James Company Real Estate Brokers & Development
(423) 400-2424
Listed By:
James Perry · License #TN 228482
Source:
Crexi
Added: Jan 5, 2024
Changed: Aug 14
Last Checked: Aug 22 at 12:11PM
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 The James Company Real Estate Brokers & Development
Investment Insights
Based on property information with market context.
This 4,048 square foot commercial property, constructed in 2011, is situated on a level 0.33-acre corner lot. The property benefits from 100 feet of road frontage on McCallie Avenue and 134 feet on S. Watkins Street. Located directly across from Parkridge Hospital and the Center for Sports Medicine and Orthopaedics, it is particularly well-suited for medical use. The property features ample parking and is located in an area with high traffic count.
Key Highlights
- Prime commercial location directly across from Parkridge Hospital & Center for Sports Medicine and Orthopaedics.
- Ideal for medical use.
- Corner lot with ample parking.
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
$46,451
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
4.59%
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%
$929,020
$929.0K
Cap Rate 7%
$663,586
$663.6K
Cap Rate 9%
$516,122
$516.1K
Market Conditions
NOI Build-Up for 4,048 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
$72.9K $18.00/SF
− Vacancy
−$10.9K −$2.70/SF
EGI
$61.9K $15.30/SF
− OpEx
−$15.5K −$3.82/SF
NOI
$46.5K $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%
$929,020
Cap Rate 7%
$663,586
Cap Rate 9%
$516,122
Alternative Uses
Best Use
Office B
$663.6K
$580.6K – $774.2K
NOI $46,451 @ 7.0% cap · market cap 4.59%
Second Best
Healthcare Medical
$644.1K
$563.6K – $751.5K
NOI $45,088 @ 7.0% cap · market cap 4.46%
Theoretical Best
Office A
$894.0K
$782.3K – $1.04M
NOI $62,581 @ 7.0% cap · market cap 6.18%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,179
Businesses Nearby
Explore this area
Business Placement
Demographics for 37404, TN
13,106
Population
5,887
Households
2.2
Avg Household Size
34
Median Age
32%
College-Educated
86%
High-School Grad
5.2 sq mi
ZIP Area
2,520
Density / Sq Mi
$53,585
Median Household Income
$35,983
Median Earnings
$999
Median Rent
$235,300
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 - Prime commercial location ideal for medical use near Parkridge Hospital.
Where is this mixed-use property located?
The property is located at 2400 McCallie Ave Chattanooga, TN.
What is the asking price?
The asking price for this property is $1,012,000.
What are key features of this property?
This property features: Prime commercial location directly across from Parkridge Hospital & Center for Sports Medicine and Orthopaedics.; Ideal for medical use.; Corner lot with ample parking.
