Retail and Office Investment
For Sale
Contact for pricing
Pending
7610 Hamilton Park Dr, Chattanooga, TN 37421
12,000 SF retail and office building, 100% occupied, strong NOI.
Property Size12,000 SF
Lot Size1.53 Acres
Days on Market662
Property Features for 7610 Hamilton Park Dr
General Information
Standard status
Pending
Size
12,000 SF
Class
B
Lot size
1.53 Acres
Property subtype
Office, Retail
Zoning
C2
Occupancy
100%
Lease Type
Modified Gross
Investment Type
Net Lease
Building Details
Year Built
1997
Buildings
1
Stories
1
Tenancy
Multi
Listing Agency:
KW Commercial
(423) 667-8634
Listed By:
Robert Fisher · License #285342
Source:
Crexi
Added: Oct 31, 2024
Changed: Aug 8
Last Checked: Jul 24 at 11:25AM
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 KW Commercial
Investment Insights
Based on property information with market context.
This 12,000 square foot retail and office building, constructed in 1997, is situated on a 1.53-acre lot. Zoned C2, the Class B building features one story and 60 parking spaces. The property is 100% occupied by five tenants, who are responsible for their own utilities. Infrastructure is well-maintained, including a new TPO roof system installed in October 2020, which comes with a 15-year warranty. HVAC units have been replaced, with two units upgraded in 2020 and three in 2021. The building is equipped with security lighting and features a concrete parking lot and landscaping. Located 2 miles from the $1 billion Volkswagen Auto Plant off of the Bonny Oaks exit, the property benefits from high traffic volume, with the Bonny Oaks exits receiving over 20,000 vehicles per day. The property sits outside the 100-year floodplain and has a clean Phase 1 Environmental Report completed in 2019. Operating expenses are approximately $7,410 annually, with total expenses around $43,067 annually, resulting in a net operating income (NOI) of $169,296.40 per year. The property includes a Fairway Digital Billboard with a long term lease that generates over $12,000 per year of income, which is included in the NOI. The property also backs up to the I-75 interstate, which carries over 100,000 cars per day, providing signage exposure. Tenants include ADT Inc (4 Suites), Jani- King (2 suites), Learn to Learn, Inc (Prometric) (2 suites), Learn to Learn, Inc (Sylvan Learning Center) (1 suite), and Andra’s Finds Tailoring (Fairy Godmother Tailoring) (1 suite).
Key Highlights
- Strong Net Operating Income (NOI) of $169,296.40 per year.
- 100% Occupancy with five different tenants provides stable income.
- Strategic Location: Situated 2 miles from the $1 Billion Volkswagen Auto Plant and adjacent to I‑75 (100,000+ cars/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
$137,700
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
5.51%
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%
$2,754,000
$2.8M
Cap Rate 7%
$1,967,143
$2.0M
Cap Rate 9%
$1,530,000
$1.5M
Market Conditions
NOI Build-Up for 12,000 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
$216.0K $18.00/SF
− Vacancy
−$32.4K −$2.70/SF
EGI
$183.6K $15.30/SF
− OpEx
−$45.9K −$3.82/SF
NOI
$137.7K $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%
$2,754,000
Cap Rate 7%
$1,967,143
Cap Rate 9%
$1,530,000
Alternative Uses
Best Use
Office B
$1.97M
$1.72M – $2.30M
NOI $137,700 @ 7.0% cap · market cap 5.51%
Second Best
Retail
$1.32M
$1.16M – $1.55M
NOI $92,736 @ 7.0% cap · market cap 3.71%
Theoretical Best
Office A
$2.65M
$2.32M – $3.09M
NOI $185,518 @ 7.0% cap · market cap 7.42%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
255
Businesses Nearby
Explore this area
Business Placement
Demographics for 37421, TN
51,686
Population
23,978
Households
2.2
Avg Household Size
40
Median Age
38%
College-Educated
92%
High-School Grad
31.7 sq mi
ZIP Area
1,630
Density / Sq Mi
$79,958
Median Household Income
$44,452
Median Earnings
$1,313
Median Rent
$299,600
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?
Retail space - 12,000 SF retail and office building, 100% occupied, strong NOI.
Where is this retail space located?
The property is located at 7610 Hamilton Park Dr Chattanooga, TN.
What is the asking price?
The asking price for this property is $2,500,000.
What are key features of this property?
This property features: Strong Net Operating Income (NOI) of $169,296.40 per year.; 100% Occupancy with five different tenants provides stable income.; Strategic Location: Situated 2 miles from the $1 Billion Volkswagen Auto Plant and adjacent to I‑75 (100,000+ cars/day).
