Mixed-Use Property with Retail
For Sale
$240,000
Pending
2783 Island Road, Blountville, TN 37617
Multi Family, Blountville, TN
Property Size600 SF
Lot Size0.51 Acres
Days on Market79
Property Features for 2783 Island Road
General Information
Property type
Residential Multi Family
Property subtype
Other
Zoning
B 1
Bedrooms
6
Bathrooms
3
Full bathrooms
3
Rooms
Bedroom 3, Bedroom 6, Bathroom 2, Bedroom 1, Bedroom 4, Bedroom 5, Bedroom 2, Bathroom 1, Bathroom 3
Elementary school
Central Heights
Middle school
Sullivan
High school
West Ridge
Directions
I81 to Exit 69, turn onto Highway 394 toward Kingsport. The building is on the west corner of Highway 394 and Island Road.
Standard status
Pending
APN
034 12200 000
Size
600 SF
Lot size
0.51 Acres
Taxes and HOA fees
Tax Annual Amount
935
Utilities
Utilities
Cable Available
Sewer type
Septic Tank
Heating system
Heat Pump (Heating), Baseboard
Cooling system
Window Unit(s), Heat Pump
Water source
Public
Building Details
Year built
1948
Floors in Building
2
Number of units
4
Flooring type
Carpet
Building materials
Block, Frame, Vinyl Siding
Roof type
Composition
Listing Agency:
Platinum Properties, Powell, Realtors
(423) 863-4514
Listed By:
Hannah Powell · License #327857
(423) 358-3286
Added: Jun 22
Changed: Sep 8
Last Checked: Sep 8 at 2:06PM
MLS# 9997190
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 mixed-use property includes three residential rental units, each configured with 2 bedrooms and 1 full bathroom. Two units have heat pumps, while the third uses baseboard heat and window units. Laundry is arranged with a shared area serving two units and a private laundry space for the remaining unit.
A separate retail and office area fronts Highway 394 and includes a restroom. The property contains approximately 600 square feet on 0.51 acres and carries B 1 zoning. Built in 1948, the improvements use block, frame, and vinyl siding construction, with public water and septic service.
A separate retail and office area fronts Highway 394 and includes a restroom. The property contains approximately 600 square feet on 0.51 acres and carries B 1 zoning. Built in 1948, the improvements use block, frame, and vinyl siding construction, with public water and septic service.
Key Highlights
- Three residential units, each with 2 bedrooms and 1 full bathroom
- Retail and office space fronting Highway 394
- Separate commercial restroom included
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
$9,270
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
3.86%
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%
$185,400
$185.4K
Cap Rate 7%
$132,429
$132.4K
Cap Rate 9%
$103,000
$103.0K
Market Conditions
NOI Build-Up for 600 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
$13.8K $23.04/SF
− Vacancy
−$581 −$0.97/SF
EGI
$13.2K $22.07/SF
− OpEx
−$4.0K −$6.62/SF
NOI
$9.3K $15.45/SF
Area
Sullivan County, TN
Vacancy
4.20%
Lease Rate
$23.04 /SF/Yr
Expense Ratio
30.00%
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%
$185,400
Cap Rate 7%
$132,429
Cap Rate 9%
$103,000
Alternative Uses
Best Use
Retail
$132.4K
$115.9K – $154.5K
NOI $9,270 @ 7.0% cap · market cap 3.86%
Second Best
Mixed Use
$75.2K
$65.8K – $87.8K
NOI $5,265 @ 7.0% cap · market cap 2.19%
Theoretical Best
Office A
$224.7K
$196.6K – $262.1K
NOI $15,728 @ 7.0% cap · market cap 6.55%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
1
Office units
Multi-tenant
Tenancy
Yes
Highway access
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
12
Businesses Nearby
Explore this area
Business Placement
Demographics for 37617, TN
14,422
Population
6,188
Households
2.3
Avg Household Size
47
Median Age
25%
College-Educated
87%
High-School Grad
58.4 sq mi
ZIP Area
247
Density / Sq Mi
$65,069
Median Household Income
$36,906
Median Earnings
$841
Median Rent
$225,000
Median Home Value
Market
Vacancy Rate% for Multifamily 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?
Mixed-use property - The property combines residential rental units with a Highway 394 retail and office space.
Where is this mixed-use property located?
The property is located at 2783 Island Road Blountville, TN.
What is the asking price?
The asking price for this property is $240,000.
What are key features of this property?
This property features: Three residential units, each with 2 bedrooms and 1 full bathroom; Retail and office space fronting Highway 394; Separate commercial restroom included
