Restaurant Building with Walk-In
For Sale
$224,900
Pending
2705 N John B Dennis Highway, Kingsport, TN 37660
COMMERCIAL - Kingsport, TN
Property Size1,848 SF
Lot Size0.71 Acres
Days on Market509
Property Features for 2705 N John B Dennis Highway
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning
B3
Parking
30
Subdivision
Not In Subdivision
Directions
From Kingsport, take the John B Dennis Highway north toward Virginia. The property is located just past Cross Creek Apartments on the right.
Standard status
Pending
APN
031j A 001.05
Size
1,848 SF
Lot size
0.71 Acres
Taxes and HOA fees
Tax Annual Amount
1379
Utilities
Sewer type
Septic Tank
Heating system
Heat Pump (Heating)
Cooling system
Heat Pump, Window Unit(s)
Water source
Public
Amenities
walk-in cooler
outdoor space
Building Details
Year built
1951
Building materials
Block, Vinyl Siding
Roof type
Metal
Listing Agency:
TCI Group - Jerry Petzoldt Agency, LLC
(423) 230-0255
Listed By:
Chris Ramsey · License #369704
(423) 646-9043
Added: Apr 3, 2025
Changed: Aug 4
Last Checked: Aug 24 at 12:06PM
MLS# 9978269
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.
Restaurant building on a 0.71-acre lot offering approximately 1,848 square feet of space. Built in 1951 with block construction and vinyl siding, the property includes a large walk-in cooler and an outdoor space, along with a large parking area for customer access. The metal roof is supported by heat pump heating and cooling via a heat pump plus window unit(s).
The site is located on John B Dennis Highway in Kingsport, TN, with quick access off a four-lane state highway. The property is near Indian Path Hospital, Kingsport Speedway, and Cox Tractor. Public water and a septic tank provide utilities.
Showing is required before 11:30 AM Monday through Saturday.
The site is located on John B Dennis Highway in Kingsport, TN, with quick access off a four-lane state highway. The property is near Indian Path Hospital, Kingsport Speedway, and Cox Tractor. Public water and a septic tank provide utilities.
Showing is required before 11:30 AM Monday through Saturday.
Key Highlights
- 0.71‑acre lot with approximately 1,848 square feet in a restaurant building
- Large walk‑in cooler plus outdoor space
- B3 zoning with quick access off a four‑lane state highway
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
$19,543
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
8.69%
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%
$390,860
$390.9K
Cap Rate 7%
$279,186
$279.2K
Cap Rate 9%
$217,144
$217.1K
Market Conditions
NOI Build-Up for 1,848 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
$27.7K $15.00/SF
− Vacancy
−$1.7K −$0.90/SF
EGI
$26.1K $14.10/SF
− OpEx
−$6.5K −$3.53/SF
NOI
$19.5K $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%
$390,860
Cap Rate 7%
$279,186
Cap Rate 9%
$217,144
Alternative Uses
Best Use
Specialty Retail
$279.2K
$244.3K – $325.7K
NOI $19,543 @ 7.0% cap · market cap 8.69%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$692.0K
$605.5K – $807.4K
NOI $48,443 @ 7.0% cap · market cap 21.54%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Highway access
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
121
Businesses Nearby
Balanced
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 - B3-zoned restaurant building with large walk-in cooler and quick highway access off a four-lane state road.
Where is this conventional restaurant located?
The property is located at 2705 N John B Dennis Highway Kingsport, TN.
What is the asking price?
The asking price for this property is $224,900.
What are key features of this property?
This property features: 0.71‑acre lot with approximately 1,848 square feet in a restaurant building; Large walk‑in cooler plus outdoor space; B3 zoning with quick access off a four‑lane state highway
