Mixed-Use Income
For Sale
$429,900
105 Brookfield Dr, Kingsport, TN 37663
Six fully leased units combine three commercial suites and three residential apartments with street-level parking.
Property Size4,544 SF
Price / SF$94.61
Days on Market40
Property Features for 105 Brookfield Dr
General Information
Standard status
Active
Size
4,544 SF
Occupancy
100%
Site & Location
Highway Access
Yes
Road Access
Yes
Additional Details
Multifamily Units
3
Building Details
Tenancy
Multi
Listing Agency:
KW Johnson City
(423) 773-1607
Listed By:
Ryan McKinney · License #322580
(423) 773-1607
Source:
Exprealty
Added: Jul 15
Changed: Aug 23
Last Checked: Jul 30 at 4:28PM
Displayed information is deemed reliable but is not guaranteed and should be independently verified. All listing content including descriptions, pricing, images are the copyrighted material of KW Johnson City
Investment Insights
Based on property information with market context.
This mixed-use investment property includes six fully occupied units, arranged as three commercial suites and three residential apartments. The commercial portion totals approximately 1,850 square feet and is divided into three suites. The residential component consists of three fully occupied apartments on the lower level, creating multiple separate income streams within one building.
Conveniently served by street-level parking for commercial clients and customers, the property is located in an established commercial corridor in Kingsport, Tennessee. It provides access to East Stone Drive, Interstate 26, and John B. Dennis Highway, connecting the asset to the greater Tri-Cities region.
Recent capital improvements include a roof that is approximately six years old. The property is fully leased and currently generates gross scheduled rental income of approximately $47,940 annually, supporting a stabilized, diversified cash flow profile.
Conveniently served by street-level parking for commercial clients and customers, the property is located in an established commercial corridor in Kingsport, Tennessee. It provides access to East Stone Drive, Interstate 26, and John B. Dennis Highway, connecting the asset to the greater Tri-Cities region.
Recent capital improvements include a roof that is approximately six years old. The property is fully leased and currently generates gross scheduled rental income of approximately $47,940 annually, supporting a stabilized, diversified cash flow profile.
Key Highlights
- Six‑unit mixed‑use property at 105 Brookfield Drive, built in 1970
- All six units are currently leased, with no lease‑up required
- Commercial space totals approx. 1,850 SF across three suites (approx. 400 SF, 600 SF, and 850 SF)
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
$31,742
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
7.38%
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%
$634,840
$634.8K
Cap Rate 7%
$453,457
$453.5K
Cap Rate 9%
$352,689
$352.7K
Market Conditions
NOI Build-Up for 4,544 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
$61.1K $13.44/SF
− Vacancy
−$3.4K −$0.74/SF
EGI
$57.7K $12.70/SF
− OpEx
−$26.0K −$5.72/SF
NOI
$31.7K $6.99/SF
Area
Sullivan County, TN
Vacancy
5.50%
Lease Rate
$13.44 /SF/Yr
Expense Ratio
45.00%
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%
$634,840
Cap Rate 7%
$453,457
Cap Rate 9%
$352,689
Alternative Uses
Best Use
Office B
$947.9K
$829.4K – $1.11M
NOI $66,350 @ 7.0% cap · market cap 15.43%
Second Best
Apartment 5plus
$453.5K
$396.8K – $529.0K
NOI $31,742 @ 7.0% cap · market cap 7.38%
Theoretical Best
Office A
$1.70M
$1.49M – $1.99M
NOI $119,115 @ 7.0% cap · market cap 27.71%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
3
Residential units
100%
Occupancy
Multi-tenant
Tenancy
Yes
Highway access
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
133
Businesses Nearby
Explore this area
Business Placement
Demographics for 37663, TN
14,392
Population
6,679
Households
2.2
Avg Household Size
47
Median Age
34%
College-Educated
95%
High-School Grad
25.8 sq mi
ZIP Area
558
Density / Sq Mi
$76,122
Median Household Income
$45,399
Median Earnings
$886
Median Rent
$224,900
Median Home Value
Market
Vacancy Rate% for Office in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Apartment building - Six fully leased units combine three commercial suites and three residential apartments with street-level parking.
Where is this apartment building located?
The property is located at 105 Brookfield Dr Kingsport, TN.
What is the asking price?
The asking price for this property is $429,900.
What are key features of this property?
This property features: Six‑unit mixed‑use property at 105 Brookfield Drive, built in 1970; All six units are currently leased, with no lease‑up required; Commercial space totals approx. 1,850 SF across three suites (approx. 400 SF, 600 SF, and 850 SF)
