Kingsport Medical Office Investment
For Sale
Contact for pricing
1653 E Stone Dr #1647, Kingsport, TN 37660
Freestanding medical office building with long-term corporate lease.
Property Size3,995 SF
Lot Size0.53 Acres
Price / SF$480.60
Days on Market153
Property Features for 1653 E Stone Dr #1647
General Information
Standard status
Active
Size
3,995 SF
Class
B
Lot size
0.53 Acres
Property subtype
Office
Zoning
B-3
Occupancy
100%
Lease Type
NN
Investment Type
Net Lease
Net Operating Income
$120,000
Building Details
Year Built
1999
Buildings
1
Stories
1
Tenancy
Single
Listing Agency:
TCI Group – Jerry Petzoldt Agency LLC
(423) 230-0255
Listed By:
Glenn Perkins · License #VA 0225224327
Source:
Crexi
Added: Mar 12
Changed: Aug 10
Last Checked: Aug 9 at 2:58PM
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 commercial real estate offering features a freestanding 3,995-square-foot medical office building in Kingsport, Tennessee. Constructed in 1999 to meet Aspen Dental's specifications, the property has been continuously occupied by the tenant since its construction. The property is situated on approximately 0.53 acres with approximately 11,000 square feet of paved parking. The property is located along the highly trafficked East Stone Drive retail corridor, a primary commercial artery serving dense residential neighborhoods and regional retail demand. The property is leased to Aspen Dental Management, Inc. under a new 5-year corporate NN lease commencing January 1, 2026. The new lease structure includes two additional five-year renewal options, each featuring 9.26% rental increases. The investment generates annual Net Operating Income of $120,000. The property's purpose-built layout, specialized improvements, and established patient base contribute to its operational commitment. This property is suitable for 1031 exchange buyers, private investors, and institutional net-lease portfolios.
Key Highlights
- New 5‑year corporate NN lease commencing January 1, 2026, providing immediate income stability.
- Located on a highly trafficked retail corridor (East Stone Drive) with strong visibility.
- Tenant is Aspen Dental Management, Inc., a large and growing dental service organization.
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
$58,333
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
3.04%
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%
$1,166,660
$1.2M
Cap Rate 7%
$833,329
$833.3K
Cap Rate 9%
$648,144
$648.1K
Market Conditions
NOI Build-Up for 3,995 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
$99.7K $24.96/SF
− Vacancy
−$21.9K −$5.49/SF
EGI
$77.8K $19.47/SF
− OpEx
−$19.4K −$4.87/SF
NOI
$58.3K $14.60/SF
Area
Sullivan County, TN
Vacancy
22.00%
Lease Rate
$24.96 /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%
$1,166,660
Cap Rate 7%
$833,329
Cap Rate 9%
$648,144
Alternative Uses
Best Use
Office B
$833.3K
$729.2K – $972.2K
NOI $58,333 @ 7.0% cap · market cap 3.04%
Second Best
Healthcare Medical
$658.0K
$575.7K – $767.6K
NOI $46,058 @ 7.0% cap · market cap 2.40%
Theoretical Best
Office A
$1.50M
$1.31M – $1.75M
NOI $104,724 @ 7.0% cap · market cap 5.45%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,100
Businesses Nearby
Well-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 Office in South region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
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Frequently Asked Questions
What type of property is this?
Medical Office Space - Freestanding medical office building with long-term corporate lease.
Where is this medical office space located?
The property is located at 1653 E Stone Dr #1647 Kingsport, TN.
What is the asking price?
The asking price for this property is $1,920,000.
What are key features of this property?
This property features: New 5‑year corporate NN lease commencing January 1, 2026, providing immediate income stability.; Located on a highly trafficked retail corridor (East Stone Drive) with strong visibility.; Tenant is Aspen Dental Management, Inc., a large and growing dental service organization.
