Downtown Commercial Condo Investment

Retail-Commercial for Sale
Catylist Listing ID: 30665648
Property Subtypes: Restaurant, Street Retail, Other
Condo? Yes
Building Size (RSF): 1,400 SF
Gross Building Area: 18,000 SF
Sale Price: $475,000
In Opportunity Zone? Yes
Property Use Type: Investment
Sale Terms: Cash to Seller
Cap Rate: 6.5%
Average Occupancy Rate: 100
Last Updated: 12/2/2020

Overview / Comments

This commercial/retail condo unit currently has a restaurant tenant occupying the space with a 5 year lease. They are 2 years into the lease agreement. The adjacent condo unit just became available and the tenant is looking to expand into that unit as well showing the strength of the business thus far. That unit is owned by the Seller of this unit. The name of the business is Leapin' Leprachun with O'Doherty Entertainment Inc.
Located by the Market Street bridge across from the Aquarium on the corner of 1st St and Market St. The unit is a part of a mixed use developemtn with residential condos above.
In late 20th and early 21st centuries, substantial private and governmental resources have been invested in transforming the city's tarnished image. In 1993, restoration of the Walnut Street Bridge was completed. An excellent specimen of the Camelback truss bridge, it is the oldest surviving bridge of its kind in the Southeastern United States, having been built in 1891. Efforts to improve the city include the "21st Century Waterfront Plan" – a $120 million redevelopment of the Chattanooga waterfront area, which was completed in 2005. The Tennessee Aquarium, which opened in 1992, has become a major waterfront attraction that has helped to spur neighborhood townhouse and condo development. Since the opening of the aquarium, downtown Chattanooga has received over $5 billion of private investment, including nearly $1 billion from 2014 to 2018.
According to a new report from Tennessee's Department of Tourism Development, 119 million domestic visitors stopped by last year. That's up six million from 2017. Tennessee Aquarium is the number one tourist attraction. On average, visitors spend about $3 million every day in the Chattanooga community.
A 2019 Chattanooga Tourism Report is available upon request.

Financials

Finance Data Year 2020
Real Estate Taxes - Annual($) $7,294 (Annual)
Gross Operating Income $42,000 (Annual)
Net Operating Income $30,904 (Annual)
Actual or Proforma Year Actual

Current Tenants

Tenant Business Name Leapin' Leprachuan
Phone Number 423-777-9097
Website URL https://www.theleprechaunpub.com/
Industry Type Accommodation and Food Services
Is Renting? Yes
Annual Revenue $42,000 (Annual)
Suite Number 102, 103
SF of Space Occupied 1,400 SF
Current Rent $30 PSF (Annual)
Lease Expiration 5/2021
Escalations 3% annually
Options None
Tenant Notes Tenant is responsible for all repairs and maintenance

Additional Details

Nearest MSA: Chattanooga
County: Hamilton
Is Condo?: Yes
Zoning: C2
Retail Clientele: General, Family, Traveler, Tourist, Recreation
Property Located Between: 1st and 2nd Streets
Property Visibility: Excellent
Largest Nearby Street: Broad Street
Highway Access: Less than 1 mile from I-24
Tenancy: Multiple Tenants
Number of Stories: 4
Typical SF / Floor: 4,500 SF
Property Condition: Good
Year Built: 2001
Construction/Siding: Brick
Parking Type: Surface
Parking Description: There are two parking lots across the street and street parking. All parkign is paid parking.

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Demographic Statistics

Proximity: 1 mile 3 miles 5 miles
Total Population: 10,573 48,305 126,980
Median Age: 35.9 34.59 37.13
Households: 4,851 19,427 52,952

Contact

Photograph of Listing Agent

Anne L Najjar

Second Story Real Estate Manag Greater Chattanooga REALTORS® Member
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