Kingsport Commercial Property on
For Sale
$1,595,000
Pending
1225 East Stone Drive, Kingsport, TN 37660
Over 13,000 sqft on 0.97 acres with B3 zoning.
Property Size13,000 SF
Lot Size0.97 Acres
Days on Market845
Property Features for 1225 East Stone Drive
General Information
Standard status
Pending
Size
13,000 SF
Lot size
0.97 Acres
Property subtype
Commercial/Industrial
Building Details
Year Built
1957
Listing Agency:
The Addington Agency Bristol
(423) 646-1060
Listed By:
Garrett Addington · License #337697
(423) 646-1060
Source:
Exitrealty
Added: Apr 30, 2024
Changed: Aug 21
Last Checked: Aug 14 at 7:23AM
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 The Addington Agency Bristol
Investment Insights
Based on property information with market context.
This commercial property in Kingsport, totaling over 13,000 sqft of usable space on a 0.97 +/- acre site, is zoned B3 and presents an opportunity for redevelopment or continued operation as a restaurant. The property's flexible zoning allows for various uses, including a restaurant, QSR, financial institution, retail establishment, or professional service hub. Situated on a signalized intersection on Stone Dr, the location offers high visibility with an average daily traffic count of over 31,000+, a pylon sign, and local recognition. The property is equipped with multiple fully outfitted commercial kitchens, a full bar, ADA compliant bathrooms, and executive offices. Additional features include 3-phase power, multiple walk-in freezers, residential apartments, multiple fireplaces, a 3-car garage, and a dumbwaiter. With multiple points of ingress and egress, the property provides easy access to nearby highways and interstates. The property is suitable for developers seeking to maximize the location's potential or investors looking to establish, relocate, or expand their business. This listing pertains exclusively to the building and its associated property.
Key Highlights
- High‑visibility location on Stone Dr with over 31,000+ ADTC and a signalized intersection.
- Large 13,000+ sqft building on a 0.97 +/- acre lot with flexible B3 zoning suitable for various businesses.
- Equipped with multiple fully outfitted commercial kitchens, full bar, walk‑in freezers, and 3‑phase power.
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
$137,475
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
8.62%
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%
$2,749,500
$2.7M
Cap Rate 7%
$1,963,929
$2.0M
Cap Rate 9%
$1,527,500
$1.5M
Market Conditions
NOI Build-Up for 13,000 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
$195.0K $15.00/SF
− Vacancy
−$11.7K −$0.90/SF
EGI
$183.3K $14.10/SF
− OpEx
−$45.8K −$3.53/SF
NOI
$137.5K $10.58/SF
Area
Sullivan County, TN
Vacancy
6.00%
Lease Rate
$15.00 /SF/Yr
Expense Ratio
25.00%
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%
$2,749,500
Cap Rate 7%
$1,963,929
Cap Rate 9%
$1,527,500
Alternative Uses
Best Use
Specialty Retail
$1.96M
$1.72M – $2.29M
NOI $137,475 @ 7.0% cap · market cap 8.62%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$4.87M
$4.26M – $5.68M
NOI $340,779 @ 7.0% cap · market cap 21.37%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
653
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 37660, TN
39,479
Population
20,405
Households
1.9
Avg Household Size
45
Median Age
24%
College-Educated
88%
High-School Grad
65.7 sq mi
ZIP Area
601
Density / Sq Mi
$46,913
Median Household Income
$34,164
Median Earnings
$833
Median Rent
$177,800
Median Home Value
Market
Vacancy Rate% for Retail 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?
Conventional restaurant - Over 13,000 sqft on 0.97 acres with B3 zoning.
Where is this conventional restaurant located?
The property is located at 1225 East Stone Drive Kingsport, TN.
What is the asking price?
The asking price for this property is $1,595,000.
What are key features of this property?
This property features: High‑visibility location on Stone Dr with over 31,000+ ADTC and a signalized intersection.; Large 13,000+ sqft building on a 0.97 +/- acre lot with flexible B3 zoning suitable for various businesses.; Equipped with multiple fully outfitted commercial kitchens, full bar, walk‑in freezers, and 3‑phase power.
