Updated Commercial Building on Stone
For Sale
Contact for pricing
1526 E Stone Dr, Kingsport, TN 37660
Newly updated commercial building with established tenant in place.
Property Size2,210 SF
Lot Size0.33 Acres
Price / SF$316.29
Days on Market1478
Property Features for 1526 E Stone Dr
General Information
Standard status
Active
Size
2,210 SF
Lot size
0.33 Acres
Property subtype
Retail
Zoning
B-3
Occupancy
100%
Lease Type
NNN
Investment Type
Net Lease
Net Operating Income
$44,200
Building Details
Year Built
1982
Year Renovated
2022
Buildings
1
Stories
1
Tenancy
Single
Listing Agency:
TCI Group – Jerry Petzoldt Agency LLC
(423) 230-0255
Listed By:
Glenn Perkins · License #TN 326486
Source:
Crexi
Added: Jul 26, 2022
Changed: Aug 8
Last Checked: Aug 8 at 4:31AM
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 TCI Group – Jerry Petzoldt Agency LLC
Investment Insights
Based on property information with market context.
This newly updated 2,210 sq. ft. commercial building is located on Stone Drive. The property is currently leased to Apotheca, a regional dispensary offering natural health products, including CBD and medical cannabis. Apotheca has multiple locations in North Carolina, Tennessee, and Georgia. The tenant, HH North LLC dba: Apotheca, is operating under an original 7-year lease executed on May 1, 2022, which includes a 5-year renewal option with a 10% rent increase. The initial 7-year term NNN rent is $44,199.96 per year, resulting in a net NNN rent income of $309,399.72 over the initial term. The building has been remodeled inside and out and features large paved parking at the front, as well as paved employee parking and access at the rear. The lot measures 60' x 238' IRR and has access from both Stone Drive and Bridgewater Lane at the rear. The property is situated on a busy section of Stone Drive, between O'Reilly Auto Parts and Appalachian Community Federal Credit Union. This property is intended for commercial use.
Key Highlights
- Tenant in place: Apotheca, a leading regional dispensary with a 5‑star rating.
- NNN lease in place with $44,199.96/year rent** and $309,399.72 net income over the initial 7‑year term.
- Original 7‑year lease executed on May 1, 2022, with a 5‑year renewal option and 10% rent increase.
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
$34,146
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
4.88%
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%
$682,920
$682.9K
Cap Rate 7%
$487,800
$487.8K
Cap Rate 9%
$379,400
$379.4K
Market Conditions
NOI Build-Up for 2,210 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
$50.9K $23.04/SF
− Vacancy
−$2.1K −$0.97/SF
EGI
$48.8K $22.07/SF
− OpEx
−$14.6K −$6.62/SF
NOI
$34.1K $15.45/SF
Area
Sullivan County, TN
Vacancy
4.20%
Lease Rate
$23.04 /SF/Yr
Expense Ratio
30.00%
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%
$682,920
Cap Rate 7%
$487,800
Cap Rate 9%
$379,400
Alternative Uses
Best Use
Retail
$487.8K
$426.8K – $569.1K
NOI $34,146 @ 7.0% cap · market cap 4.88%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$827.6K
$724.2K – $965.5K
NOI $57,932 @ 7.0% cap · market cap 8.29%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
219
Businesses Nearby
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
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Frequently Asked Questions
What type of property is this?
Retail space - Newly updated commercial building with established tenant in place.
Where is this retail space located?
The property is located at 1526 E Stone Dr Kingsport, TN.
What is the asking price?
The asking price for this property is $699,000.
What are key features of this property?
This property features: Tenant in place: **Apotheca, a leading regional dispensary with a 5‑star rating.**; NNN lease in place with $44,199.96/year rent** and $309,399.72 net income over the initial 7‑year term.; Original 7‑year lease executed on May 1, 2022, with a 5‑year renewal option and 10% rent increase.
