Airport Aircraft Hangar with Pilot
For Sale
$750,000
159 Industrial Park Dr, Sevierville, TN 37862
Steel-framed aviation facility with an integrated pilot lounge, office, bathroom, storage, and full kitchen.
Property Size3,900 SF
Price / SF$192.31
Days on Market31
Property Features for 159 Industrial Park Dr
General Information
Standard status
Active
Size
3,900 SF
Building Details
Year Built
2025
Listing Agency:
10 Realty LLC
(865) 364-6868
Listed By:
Randy Bable · License #340077
Source:
Fykesrealtygroup
Added: Jul 30
Changed: Aug 28
Last Checked: Aug 28 at 12:56PM
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 10 Realty LLC
Investment Insights
Based on property information with market context.
This 2025 steel-framed aircraft hangar at Gatlinburg Pigeon Forge Airport (KGKT) includes approximately 3,000 square feet of hangar area and a 50' x 20' bi-fold door. Ground-level improvements include an office, full bathroom, storage room, gas heat, tankless gas water heater, and insulated construction. A finished approximately 900-square-foot pilot lounge apartment occupies the level above, with a kitchen, living area, bedroom, and bathroom.
The offering conveys the hangar improvements and assignment of the existing airport ground lease; no fee simple real estate is included. The lease is currently in Year 4 of a 30-year term and remains subject to airport approval. The airport is located near Gatlinburg, Pigeon Forge, Sevierville, Dollywood, and Great Smoky Mountains National Park.
The offering conveys the hangar improvements and assignment of the existing airport ground lease; no fee simple real estate is included. The lease is currently in Year 4 of a 30-year term and remains subject to airport approval. The airport is located near Gatlinburg, Pigeon Forge, Sevierville, Dollywood, and Great Smoky Mountains National Park.
Key Highlights
- Approximately 3,000 square feet of hangar space
- 50' x 20' bi‑fold hangar door
- Approximately 900‑square‑foot finished pilot lounge apartment
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
$37,582
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
5.01%
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%
$751,640
$751.6K
Cap Rate 7%
$536,886
$536.9K
Cap Rate 9%
$417,578
$417.6K
Market Conditions
NOI Build-Up for 3,900 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
$56.2K $14.40/SF
− Vacancy
−$2.5K −$0.63/SF
EGI
$53.7K $13.77/SF
− OpEx
−$16.1K −$4.13/SF
NOI
$37.6K $9.64/SF
Area
Sevier County, TN
Vacancy
4.40%
Lease Rate
$14.40 /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%
$751,640
Cap Rate 7%
$536,886
Cap Rate 9%
$417,578
Alternative Uses
Best Use
Industrial
$536.9K
$469.8K – $626.4K
NOI $37,582 @ 7.0% cap · market cap 5.01%
Second Best
Flex RnD
$339.1K
$296.7K – $395.6K
NOI $23,734 @ 7.0% cap · market cap 3.16%
Theoretical Best
Office A
$1.64M
$1.44M – $1.92M
NOI $115,128 @ 7.0% cap · market cap 15.35%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
533
Businesses Nearby
Explore this area
Business Placement
Demographics for 37862, TN
23,236
Population
13,676
Households
1.7
Avg Household Size
43
Median Age
23%
College-Educated
87%
High-School Grad
81.8 sq mi
ZIP Area
284
Density / Sq Mi
$58,110
Median Household Income
$31,490
Median Earnings
$956
Median Rent
$283,800
Median Home Value
Market
Vacancy Rate% for Industrial in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Aviation real estate - Steel-framed aviation facility with an integrated pilot lounge, office, bathroom, storage, and full kitchen.
Where is this aviation real estate located?
The property is located at 159 Industrial Park Dr Sevierville, TN.
What is the asking price?
The asking price for this property is $750,000.
What are key features of this property?
This property features: Approximately 3,000 square feet of hangar space; 50' x 20' bi‑fold hangar door; Approximately 900‑square‑foot finished pilot lounge apartment
