Renovated Historic Building with Restaurant/Pub Tenant

Retail-Commercial for Sale
Catylist Listing ID: 30510148
Property Subtypes: Restaurant
Building Size (RSF): 2,700 SF
Gross Building Area: See Agent
Sale Price: $995,000
Unit Price: $368.52 PSF
In Opportunity Zone? Yes
Property Use Type: Investment, Business
Building Name: The Bitter Alibi
Sale Terms: Cash to Seller, Purchase Money Mortgage
Cap Rate: 6.0%
Last Updated: 12/2/2019

Overview / Comments

Please contact the agent for more information about this listing.

Attachments & Media

Financials

Finance Data Year 2018
Real Estate Taxes - Annual($) $3,485 (Annual)
Tax Value Land $9,900
Assessed Value - Total($) $172,800 (Annual)
Potential Rental Income $8,000 (Annual)
Gross Operating Income $64,200 (Annual)
Net Operating Income $60,714 (Annual)
Actual or Proforma Year Actual

Current Tenants

Tenant Business Name The Bitter Alibi

Additional Details

Nearest MSA: Chattanooga
County: Hamilton
Tax ID/APN: 033145D V 01200
Retail Clientele: Business, Tourist, Recreation, Other
Property Visibility: Excellent
Largest Nearby Street: MLK
Site Description: 20’ x 45’ on three floors = 2,700 square feet 20’ x 6’ Front Porch (brick, concrete and steel), excellent condition, currently used as an extension of customer seating / gathering space 20’ x 7’ Rear Porch (wood, poor condition, currently used as a fire escape only)
Area Description: Chattanooga was rated as one of the top ten families/best affordable places to live (2018), 100 best places to live (2017 & 2018), top 10 places to retire (2017), top 10 best college towns (2017), Outdoor Magazine the best town ever twice in last four years and best places/best cities for entrepreneurs (2017). Chattanooga is ranked #42 out of 100. Chattanooga is surrounded by mountains and lakes allowing for some of the best outdoor recreation in the southeast available within minutes. The county is home to some of the top full-service hospitals in the country including one of the only six Level I Trauma Centers in the Tennessee. Known as the "Gig City" as the first city in the nation to offer 10-gigabit internet speeds. Chattanooga has a number of excellent private schools including the Girls Preparatory School, McCallie and Baylor. The cost of living is below 12.5% the national average as is the medium priced home is below national average. The weather in moderate aand averages 42.5° F in winter, 60.4° F in spring, 78.6° F in summer and 61.7° F in fall. The subject property is located at 825 Houston Street and just north of ML King Boulevard in Chattanooga, Hamilton County, Tennessee. The subject neighborhood would be considered to be that portion of downtown Chattanooga which is bordered on the north and west by the Tennessee River, on the south by Interstate 24, on the east by Central Avenue. The property is immediately bordered by •North: Scenic City Hostel, and 26 room boutique hostel catering to business travelers, outdoor adventurers and athletes, and extended stay professionals. •South: Barley Taproom featuring craft beer and cocktails and live music •East: Kanku’s Convenience store (no parking, no gas pumps), and UTC Mapp Building (classrooms) and parking. •West: The Coin-Op Video Arcade (video games) and JJ’s Bohemian (Taproom, live music) The subject property is located in a portion of downtown Chattanooga which is has recently been targeted for major redevelopment efforts. M L King Boulevard, which is located just south of the subject, and McCallie Avenue, to the north of the subject, were changed from one-way to two-way streets during recent years. These traffic changes have spurred development in the area of the subject primarily in the form of renovation of older buildings for higher use. Additionally, the University of Tennessee at Chattanooga has been in a period of growth for the past several years and is progressing toward M L King Boulevard with the development of new student housing facilities in close proximity to the subject. Future development in the area would be expected to be largely developments connected with or ancillary to the university. Direct access to the subject neighborhood is via the west side of Houston Street with the primary traffic arterials in the area being M L King Boulevard to the south and McCallie Avenue to the north. Access to the neighborhood from other areas is considered to be good due to the proximity of the subject to U.S. Highway 27 to the west and the subsequent access it provides to Interstates 75, 24 and 59. The Chattanooga City Hall is located two blocks south of the subject. University of Tennessee at Chattanooga main campus is located approximately two blocks northeast of the subject. The two major UTC buildings are located directly northeast of the subject. Most of the frontage along M L King Boulevard is commercially developed with many of the commercial properties in the area having living quarters above the storefronts. Most recent developments in the area have been in conjunction with UTC. Following the conversion of M L King and McCallie to two-way traffic, development in the area has increased due to the improved access to properties on either side of the streets. Development by UTC is expected to dominate the area well into the foreseeable future.
Tenancy: Single Tenant
Total Number of Buildings: 1
Number of Stories: 3
Property Condition: Excellent
Year Built: 1920
Year Renovated: 2009
Roof Type: Flat
Construction/Siding: Brick
Exterior Description: Triple-thick brick walls in the basement (exposed inside and clear-coated), double-thick brick walls for the 1st and 2nd floor furred out with insulation and sheetrock. Exterior completely re-pointed and painted in 2018. Windows updated with aluminum frames and insulated glass (front), and steel frames and insulated glass (remaining windows) 2009. One original wood-framed bay window remains. Roof is rolled asphalt coated reflective white in 2009 and recoated reflective white in 2019. Basement floor is original concrete, polished, stained leather brown and sealed 2009. 1st and 2nd floors wide oak boards over new subfloor (2009) Exterior brick completely re-pointed and painted in 2018. New steel-framed 2nd floor porch with new steel railing and stanchions and stained leather brown concrete walking surface. Porch was rebuilt with new oak timbers and exposed scissor trusses, exposed faux copper roofing and large paddle fan. 1st floor porch rebuilt (and closed off from the street) with stained leather brown concrete surface and brick surround. Wood-surface wrap-around beverage and dining rail. Rear porch is is poor cosmetic condition and is used as a fire escape only.
Parking Type: Surface
Parking Description: Plentiful metered street parking on Houston Street, and MLK. Free parking after 6:00 pm in large surface lot to the immediate rear of the building. Paid parking to the north on Houston Street in large surface lot.
Sprinklers: None
Heat Type: Electricity, Natural Gas
Heat Source: Central, Wall Units
Air Conditioning: Package Unit
Internet Access: Fiber Optic
Interior Description: Exposed and clear coated brick walls in he basement, and painted sheetrock walls for the 1st and 2nd floors. Large Stone (non-functioning) fireplace on the 1st and 2nd floors. Basement floor is original concrete, polished, stained leather brown and sealed 2009. 1st and 2nd floors wide oak boards over new subfloor (2009)
Water Service: Municipal
Sewer Type: Municipal
Legal Description: PT OF LT H BLK 3 GRIFFINS ADDN N/R

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Demographic Statistics

Proximity: 1 mile 3 miles 5 miles
Total Population: 11,060 52,185 126,134
Median Age: 32.05 33.33 36.47
Households: 4,213 20,848 52,363

Contact

Photograph of Listing Agent

Michael Cross

EXP Realty LLC Greater Chattanooga REALTORS® Member
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