Exterior Envelope
- Roof: GAF Timberline HDZ Shakewood shingles
- Gutters: 6" K-style painted copper
- Stone Pairing: Upper-story color to complement existing masonry / facade.
FAZY Holdings LLC
FAZY Holdings LLC
Following inspection, significant foundation damage was identified. After thorough analysis of professional inspections, safety considerations, and renegotiation options, FAZY Holdings determined that the risks outweighed any potential benefits.
1930 duplex restoration in Chattanooga that blends historic character with modern reliability: Logic meets innovation.
Avondale on Ocoee is a FAZY restoration initiative to revive a 1930s duplex by preserving structure and period details while delivering durable, modern comfort. The project aligns with our mission to bring antique properties and classic craftsmanship back to life using a disciplined, data-driven plan.
The property will operate as a mixed-use rental asset with two named units: The Premiere Suite (flexible stay) and The Matinee Apartment (long-term residence) designed for balancing steady cash flow with strategic upside.
The Matinee Apartment is the steady, long-term rental half of the Avondale on Ocoee duplex. Designed as a 2 bedroom, 1 bathroom residence, it anchors the property’s cash flow and ensures stable performance even in periods of softer STR demand.
At a projected rent of $1,195/month + tenant-paid utilities, the Matinee covers nearly 70% of total monthly OPEX (including debt service). This makes the property resilient, lowering risk while maintaining strong upside potential from the Premiere Suite’s short-term rental income.
Planned upgrades include new HVAC, modernized kitchen and bath finishes, improved insulation, and period-appropriate design touches that preserve its 1930s charm while ensuring comfort and durability for long-term residents.
The Chattanooga rental market softened in 2024–2025 due to a surge of new apartment deliveries, pushing occupancy down to ~89% and rent growth slightly negative (-2.1% YoY). Developers then sharply cut back on new starts (↓ ~90%), allowing demand to catch up. By mid-2025, indicators like Zillow’s Rent Index showed stabilization and a modest rebound (+0.9% YoY).
Entering 2026, the outlook is for a more balanced market: vacancy easing, concessions fading, and steady to mildly rising rents (~+1–3% YoY expected). Renovated units in affordable submarkets like Avondale should lease quickly and hold their value.
In 2025, renovated 2BR/1BA units in Avondale and nearby neighborhoods rented in the $1,100–$1,250/mo range. With updated systems, Energy Star appliances, and restored historic charm, the Matinee Apartment is positioned at $1,195/mo—the midpoint of this band.
This rent level is both competitive for quick lease-up and sustainable as the market trends upward into 2026. Expected growth of +1–3% YoY should allow for small rent increases while maintaining strong tenant demand.
The Premiere Suite will feature 1930s-inspired design touches blended with modern upgrades to create an inviting and efficient 1 bedroom, 1 bathroom space. This makes it ideal for business travelers, single guests, or couples seeking something more distinctive than a standard hotel stay.
Located just 15 minutes from Chattanooga Airport and within a short drive of downtown, the Riverwalk, and major employers, the Suite is positioned to capture consistent demand from both weekend visitors and traveling professionals.
At a projected $125 nightly rate, the Premiere Suite competes directly with boutique Airbnbs and lofts, while offering the added character of a restored historic duplex.
Planned 1930s-inspired decor and period furnishings will make the Premiere Suite a unique stay, blending historic charm with modern comfort.
Projections assume a 20% down payment, 7% loan interest, and a fixed $60,000 in capital improvements. Returns are modeled by combining steady long-term rent from the Matinee Apartment with variable short-term rental performance from the Premiere Suite.
Core operating expenses and debt service remain stable regardless of occupancy. This pie chart illustrates the fixed monthly costs:
Matinee rent at $1,195/mo covers ~70% of monthly OPEX (including debt service). This keeps the asset resilient—most expenses are covered by long-term tenancy alone, while STR income drives upside.
This chart shows annual cash flow and leveraged cash-on-cash ROI across STR occupancy levels. With CAPEX included and the Matinee Apartment at $1,195/mo, the property reaches breakeven at ~14% STR occupancy (≈5 nights per month).
Even modest STR activity quickly drives positive cash flow. With the Matinee covering the majority of costs, a handful of Premiere Suite bookings each month deliver strong leveraged returns.
With financing (20% down, 7% interest) and a fixed $60,000 capital improvement plan, the project creates equity beyond operating returns. The table below shows net equity gains after renovation, measured against total cash invested.
| Scenario | ARV | Net Equity Gain | Leveraged ROI |
|---|---|---|---|
| Conservative | $215,000 | +$10,800 | ~12% |
| Optimistic | $290,000 | +$85,800 | ~93% |
Even at conservative valuations, the renovation delivers positive equity growth. At higher ARVs, investors nearly double their capital before factoring in ongoing cash flow.
FAZY Holdings has budgeted a fixed $60,000 for renovations to modernize the property while preserving its 1930s charm. Planned work includes: