Quality Inn Johnson City
For Sale
Contact for pricing
119 Pinnacle Dr, Johnson City, TN 37615
Hospitality property with seven-figure performance potential in up-and-coming city.
Property Size22,922 SF
Price / SF$137.42
Days on Market154
Property Features for 119 Pinnacle Dr
General Information
Standard status
Active
Size
22,922 SF
Property subtype
Hospitality
Occupancy
45%
Investment Type
Owner/User
Net Operating Income
$295,512
Building Details
Year Built
1997
Year Renovated
2025
Buildings
2
Stories
2
Listing Agency:
Matthews
Listed By:
Chris Beavers · License #379455
Source:
Crexi
Added: Mar 12
Changed: Aug 8
Last Checked: Aug 11 at 6:25PM
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 Matthews
Investment Insights
Based on property information with market context.
An acquisition opportunity exists for hoteliers and extended stay conversion specialists. The property is located in Johnson City, which has been recognized as the #1 Best Place to Live in 2025 by Travel + Leisure Magazine, citing its schools, safety, health care, and outdoor living. The property has a size of 22922 square feet.
Key Highlights
- Seven‑figure performance potential.
- Located in Johnson City, named #1 Best Place to Live in 2025 by Travel + Leisure Magazine.
- Attractive acquisition opportunity for hoteliers.
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
$172,465
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
5.48%
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%
$3,449,300
$3.4M
Cap Rate 7%
$2,463,786
$2.5M
Cap Rate 9%
$1,916,278
$1.9M
Market Conditions
NOI Build-Up for 22,922 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
$412.6K $18.00/SF
− Vacancy
−$49.5K −$2.16/SF
EGI
$363.1K $15.84/SF
− OpEx
−$190.6K −$8.32/SF
NOI
$172.5K $7.52/SF
Area
Washington County, TN
Vacancy
12.00%
Lease Rate
$18.00 /SF/Yr
Expense Ratio
52.50%
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%
$3,449,300
Cap Rate 7%
$2,463,786
Cap Rate 9%
$1,916,278
Alternative Uses
Best Use
Hotel Hospitality
$2.46M
$2.16M – $2.87M
NOI $172,465 @ 7.0% cap · market cap 5.48%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$9.67M
$8.46M – $11.28M
NOI $676,657 @ 7.0% cap · market cap 21.48%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
177
Businesses Nearby
Explore this area
Business Placement
Demographics for 37615, TN
22,151
Population
9,946
Households
2.2
Avg Household Size
43
Median Age
40%
College-Educated
95%
High-School Grad
37.6 sq mi
ZIP Area
589
Density / Sq Mi
$75,556
Median Household Income
$43,758
Median Earnings
$966
Median Rent
$261,200
Median Home Value
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Hotel - Hospitality property with seven-figure performance potential in up-and-coming city.
Where is this hotel located?
The property is located at 119 Pinnacle Dr Johnson City, TN.
What is the asking price?
The asking price for this property is $3,150,000.
What are key features of this property?
This property features: Seven‑figure performance potential.; Located in Johnson City, named #1 Best Place to Live in 2025 by Travel + Leisure Magazine.; Attractive acquisition opportunity for hoteliers.
