535 Old Knoxville Hwy, Newport, TN 37821 (MLS # 1283461)

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PRICE $3,630,000 BEDS 0 BATHS 0 HOME SIZE 20,352 sqft LOT SIZE n/a Request More Info Schedule a Showing

Prime Investment Opportunity: Modern 19 Unit Complex with High Growth Potential Prime Investment Opportunity | New Construction Cap Rate: 7.2% NOI: Solid and stable, with full occupancy across units This is a recently completed new construction multifamily property featuring 19 units total, comprised of six triplexes, one single-family home, and two income-producing billboards. The triplexes were completed in 2024 and are now 100% occupied, offering a turnkey investment from day one with low-maintenance management. Each unit was built with long-term maintenance and energy efficiency in mind, including: Luxury Vinyl Plank flooring throughout Granite countertops Foam insulation and knockdown wall texture Stainless steel appliances and laundry closets in every unit Keyless entry and tenant decks 30-year shingle roofs Open parking areas Tenants are responsible for utilities The triplex units currently average $1,450/month in rent, and the standalone single-family home brings in $2,500/month. In addition, the property includes a double billboard under contract with Lamar Advertising, providing supplemental income. Strategic Location and Expansion Potential This 4.23-acre parcel is located just 5 minutes from Interstate 40, offering excellent commuter access while remaining outside high-traffic tourist zones. The existing layout leaves room for additional development, with potential to add up to four more structures depending on spacing and adjustment of existing site elements such as the centrally located home and one of the billboards. The builder, who was a key principal in the project, unfortunately passed away last year in late May 2024. The current owners, including the builder's widow, are offering the property for sale now that construction is complete and the property is stabilized. This transition also marks the first full fiscal year with complete income and expense reporting. Actual expense documentation, including taxes and self-management figures, is available for review and included in the memorandum attached. Rental Market and Tenant Profile The rental demand in East Tennessee continues to climb, driven by a mix of in-migration, affordability pressures in surrounding metro areas, and limited new multifamily development. Cocke County and the surrounding region are experiencing steady population growth and increasing rental absorption"”especially in workforce and mid-range housing categories. Key market dynamics include: East Tennessee's population grew by over 9% between 2010 and 2020, outpacing the national average. This trend has continued into the mid-2020s, fueled by retirees, remote workers, and cost-conscious transplants from higher-cost states like California. Sevier County, adjacent to Cocke County, has added over 8,500 new residents since 2020, increasing demand for both rental and owner-occupied housing"”yet the supply of long-term rental inventory remains extremely limited due to the area's focus on short-term vacation rentals. The median home price in Sevier County has increased over 40% since 2019, pushing more residents and workers to rent in outlying areas like Newport and Cocke County, where housing is more affordable but still offers access to major job corridors and services. Occupancy rates for quality rental properties in the region routinely exceed 95%, particularly for units near commuter routes like Interstate 40. The tenant base at 535 Old Knoxville Highway reflects these broader trends, with a healthy mix of local residents and out-of-state renters. Many tenants are working professionals or families relocating from areas like Sevierville, Knoxville, or even out-of-state markets, who seek housing outside of tourist zones but still require convenient access to employment, schools, and essential services. Importantly, Newport and Cocke County currently have limited multifamily housing. See walk-through on YouTube