Lakefront Income
For Sale
$550,000
122 Circle Drive, Bean Station, TN 37708
COMMERCIAL - Bean Station, TN
Property Size3,000 SF
Lot Size0.50 Acres
Price / SF$183.33
Days on Market100
Property Features for 122 Circle Drive
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning
Commercial
Directions
From Morristown take US25E N/US -25E South, turn right onto Circle Dr go 300 ft . You can also access through Moldtox parking lot 1510 Highway 25E Bean Station 37708
Subdivision
205 - Grainger County
Standard status
Active
APN
044p A 007.00
Size
3,000 SF
Lot size
0.50 Acres
Taxes and HOA fees
Tax Annual Amount
1815
Utilities
Sewer type
Septic Tank
Heating system
Central
Cooling system
Central Air
Water source
Public
Building Details
Year built
1998
Building materials
Vinyl Siding
Roof type
Shingle
Listing Agency:
REMAX Real Estate Ten of Morristown
(423) 581-8881
Listed By:
Ashley Hunt · License #369356
(865) 438-4543
Added: May 15
Changed: Aug 4
Last Checked: Aug 22 at 10:06AM
MLS# 9995448
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 lakefront property is configured with separate living quarters, offering an upstairs area that is currently vacant and features three bedrooms and two full bathrooms. The lower level includes five additional rooms, a large gathering space, and a full bathroom, and it is currently rented on a month-to-month basis.
The home includes two carports and a partial foundation already in place. The property is designated with commercial zoning, and it is situated near shopping, downtown, and a hospital, with convenient access to those destinations.
Overall, the layout supports either owner-occupancy of the upstairs with rental income from the downstairs, or continued leasing of both levels, with the existing two-quarter configuration as the foundation for flexibility.
The home includes two carports and a partial foundation already in place. The property is designated with commercial zoning, and it is situated near shopping, downtown, and a hospital, with convenient access to those destinations.
Overall, the layout supports either owner-occupancy of the upstairs with rental income from the downstairs, or continued leasing of both levels, with the existing two-quarter configuration as the foundation for flexibility.
Key Highlights
- Lakefront property offering a rare opportunity.
- Separate living quarters ideal for multi‑generational living or rental income.
- Potential for rental income from the lower level to offset mortgage costs.
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
$26,923
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
4.90%
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%
$538,460
$538.5K
Cap Rate 7%
$384,614
$384.6K
Cap Rate 9%
$299,144
$299.1K
Market Conditions
NOI Build-Up for 3,000 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
$52.9K $17.64/SF
− Vacancy
−$4.0K −$1.32/SF
EGI
$49.0K $16.32/SF
− OpEx
−$22.0K −$7.34/SF
NOI
$26.9K $8.97/SF
Area
Grainger County, TN
Vacancy
7.50%
Lease Rate
$17.64 /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%
$538,460
Cap Rate 7%
$384,614
Cap Rate 9%
$299,144
Alternative Uses
Best Use
Apartment 5plus
$384.6K
$336.5K – $448.7K
NOI $26,923 @ 7.0% cap · market cap 4.90%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$743.0K
$650.2K – $866.9K
NOI $52,013 @ 7.0% cap · market cap 9.46%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
22
Businesses Nearby
Explore this area
Business Placement
Demographics for 37708, TN
6,584
Population
3,490
Households
1.9
Avg Household Size
49
Median Age
16%
College-Educated
79%
High-School Grad
41.3 sq mi
ZIP Area
159
Density / Sq Mi
$45,331
Median Household Income
$31,981
Median Earnings
$621
Median Rent
$161,800
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?
Single family property - Two separate living quarters with an upstairs 3/2 area and a downstairs suite rented month-to-month.
Where is this single family property located?
The property is located at 122 Circle Drive Bean Station, TN.
What is the asking price?
The asking price for this property is $550,000.
What are key features of this property?
This property features: Lakefront property offering a rare opportunity.; Separate living quarters ideal for multi‑generational living or rental income.; Potential for rental income from the lower level to offset mortgage costs.
