Restaurant Property with Commercial
For Sale
$1,595,000
Pending
1225 E Stone Drive, Kingsport, TN 37660
COMMERCIAL - Kingsport, TN
Property Size13,000 SF
Lot Size0.97 Acres
Days on Market845
Property Features for 1225 E Stone Drive
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning
B3
Directions
From I-81N, Take exit 59 for TN-36 toward Kingsport/Johnson City. Turn left onto Fort Henry Dr. Continue straight to stay on TN-36 N/Fort Henry Dr. Merge onto TN-93 N via the ramp to Bristol. Slight right onto the US-11W S ramp. Merge onto US11W N/E Stone Dr.
Subdivision
412 - Highland, Fairacres, Preston For
Standard status
Pending
APN
046l A 003.00
Size
13,000 SF
Lot size
0.97 Acres
Taxes and HOA fees
Tax Annual Amount
8790
Utilities
Sewer type
Public Sewer
Heating system
Heat Pump (Heating)
Cooling system
Heat Pump
Water source
Public
Amenities
multiple fireplaces
3 car garage
dumbwaiter
Building Details
Year built
1957
Building materials
Block, Wood Siding
Roof type
Metal
Listing Agency:
The Addington Agency Bristol
(423) 845-5800
Listed By:
Garrett Addington · License #337697
(423) 646-1060
Added: Apr 30, 2024
Changed: Aug 4
Last Checked: Aug 22 at 3:06PM
MLS# 9965178
Copyright © 2026 Tennessee Virginia Regional Multiple Listing Service. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
This restaurant property includes approximately 13,000 square feet of usable space on a 0.97-acre site. Existing improvements include multiple commercial kitchens, a full bar, ADA-compliant bathrooms, executive offices, walk-in freezers, residential apartments, multiple fireplaces, a three-car garage, and a dumbwaiter. The building dates to 1957 and features block and wood siding, a metal roof, heat-pump heating and cooling, three-phase power, public water, and public sewer.
Positioned at a signalized intersection on Stone Drive in Kingsport, the property records more than 31,000+ average daily traffic count and includes a pylon sign. Multiple ingress and egress points provide access to nearby highways and interstates. B3 zoning and the existing restaurant infrastructure support continued restaurant use or redevelopment. The sale includes the building and associated property; the operating business, name, and related intellectual property are excluded.
Positioned at a signalized intersection on Stone Drive in Kingsport, the property records more than 31,000+ average daily traffic count and includes a pylon sign. Multiple ingress and egress points provide access to nearby highways and interstates. B3 zoning and the existing restaurant infrastructure support continued restaurant use or redevelopment. The sale includes the building and associated property; the operating business, name, and related intellectual property are excluded.
Key Highlights
- 13,000 square feet of usable space on a 0.97 +/- acre site
- B3 zoning at a signalized intersection on Stone Drive
- More than 31,000+ average daily traffic count
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
$137,475
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
8.62%
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%
$2,749,500
$2.7M
Cap Rate 7%
$1,963,929
$2.0M
Cap Rate 9%
$1,527,500
$1.5M
Market Conditions
NOI Build-Up for 13,000 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
$195.0K $15.00/SF
− Vacancy
−$11.7K −$0.90/SF
EGI
$183.3K $14.10/SF
− OpEx
−$45.8K −$3.53/SF
NOI
$137.5K $10.58/SF
Area
Sullivan County, TN
Vacancy
6.00%
Lease Rate
$15.00 /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%
$2,749,500
Cap Rate 7%
$1,963,929
Cap Rate 9%
$1,527,500
Alternative Uses
Best Use
Specialty Retail
$1.96M
$1.72M – $2.29M
NOI $137,475 @ 7.0% cap · market cap 8.62%
Second Best
Industrial
$1.23M
$1.08M – $1.44M
NOI $86,104 @ 7.0% cap · market cap 5.40%
Theoretical Best
Office A
$4.87M
$4.26M – $5.68M
NOI $340,779 @ 7.0% cap · market cap 21.37%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
31,000 VPD
Traffic count
Yes
Highway access
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
653
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 37660, TN
39,479
Population
20,405
Households
1.9
Avg Household Size
45
Median Age
24%
College-Educated
88%
High-School Grad
65.7 sq mi
ZIP Area
601
Density / Sq Mi
$46,913
Median Household Income
$34,164
Median Earnings
$833
Median Rent
$177,800
Median Home Value
Market
Vacancy Rate% for Retail in South region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Conventional restaurant - Restaurant property with commercial kitchens, bar facilities, and B3 zoning.
Where is this conventional restaurant located?
The property is located at 1225 E Stone Drive Kingsport, TN.
What is the asking price?
The asking price for this property is $1,595,000.
What are key features of this property?
This property features: 13,000 square feet of usable space on a 0.97 +/- acre site; B3 zoning at a signalized intersection on Stone Drive; More than 31,000+ average daily traffic count
