Pigeon Forge Redevelopment
For Sale
$1,700,000
1134-1138 Wears Valley Road, Pigeon Forge, TN 37863
COMMERCIAL - Pigeon Forge, TN
Property Size4,394 SF
Lot Size6.95 Acres
Price / SF$386.89
Days on Market754
Property Features for 1134-1138 Wears Valley Road
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning
C6; R2
Lot features
City Lot, Corner Lot
Directions
From the Parkway (US 441) in Pigeon Forge, turn at Light #3 onto Wears Valley Road. Go approximately 1.8 miles to property on right.
Subdivision
Pigeon Forge
Standard status
Active
APN
093 133.00, 140.00, 145.00, 146.00
Size
4,394 SF
Lot size
6.95 Acres
Taxes and HOA fees
Tax Year
2023
Tax Annual Amount
2367
Utilities
Utilities
Electricity Available
Building Details
Year built
1961
Floors in Building
1
Listing Agency:
NAI Koella | RM Moore
(865) 453-8111
Listed By:
David Gothard · License ##00262082
(865) 607-9536
Added: Aug 1, 2024
Changed: Aug 12
Last Checked: Aug 24 at 2:06AM
MLS# 302316
Copyright © 2026 Great Smoky Mountains Association of Realtors. 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 combined commercial and residential property offers a redevelopment opportunity within Pigeon Forge. Situated on Wears Valley Road, a high-traffic 5-lane artery with a median, the location allows for convenient access. The combined parcels total approximately 6.95 acres. The two parcels fronting Wears Valley Road are commercially zoned (C-6) with a combined acreage of 1.55 acres. Each of these parcels includes a residential building, one constructed in 1961 and the other in 1975. The remaining parcels, totaling approximately 5.40 acres, are primarily zoned R-2 for high-density residential development. Access to the R-2 parcels is available through the two C-6 zoned parcels. The property is suitable for commercial use in the front, such as restaurants and food services, professional services, and retail sales, with cabin and other high-density residential development in the back property. The property seems well suited for a commercial retail/office development on the two commercial lots and a log cabin resort on the back high-density residential-zoned tract. The property size is 4394 square feet.
Key Highlights
- Prime redevelopment opportunity in Pigeon Forge, a major tourist destination.
- High‑traffic location on Wears Valley Road, a 5‑lane artery with a median.
- Combined 6.95 acres with both commercial (C‑6) and high‑density residential (R‑2) zoning.
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
$54,573
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
3.21%
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%
$1,091,460
$1.1M
Cap Rate 7%
$779,614
$779.6K
Cap Rate 9%
$606,367
$606.4K
Market Conditions
NOI Build-Up for 4,394 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
$94.9K $21.60/SF
− Vacancy
−$7.6K −$1.73/SF
EGI
$87.3K $19.87/SF
− OpEx
−$32.7K −$7.45/SF
NOI
$54.6K $12.42/SF
Area
Sevier County, TN
Vacancy
8.00%
Lease Rate
$21.60 /SF/Yr
Expense Ratio
37.50%
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%
$1,091,460
Cap Rate 7%
$779,614
Cap Rate 9%
$606,367
Alternative Uses
Best Use
Mixed Use
$779.6K
$682.2K – $909.6K
NOI $54,573 @ 7.0% cap · market cap 3.21%
Second Best
Apartment 5plus
$466.1K
$407.8K – $543.8K
NOI $32,625 @ 7.0% cap · market cap 1.92%
Theoretical Best
Office A
$1.85M
$1.62M – $2.16M
NOI $129,711 @ 7.0% cap · market cap 7.63%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
144
Businesses Nearby
Explore this area
Business Placement
Demographics for 37863, TN
6,988
Population
5,570
Households
1.3
Avg Household Size
40
Median Age
12%
College-Educated
74%
High-School Grad
17.2 sq mi
ZIP Area
406
Density / Sq Mi
$53,587
Median Household Income
$31,235
Median Earnings
$933
Median Rent
$253,400
Median Home Value
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Mixed-use property - Commercial and residential property on high-traffic road, suitable for redevelopment.
Where is this mixed-use property located?
The property is located at 1134-1138 Wears Valley Road Pigeon Forge, TN.
What is the asking price?
The asking price for this property is $1,700,000.
What are key features of this property?
This property features: Prime redevelopment opportunity in Pigeon Forge, a major tourist destination.; High‑traffic location on Wears Valley Road, a 5‑lane artery with a median.; Combined 6.95 acres with both commercial (C‑6) and high‑density residential (R‑2) zoning.
