Turnkey Kitchen & Bar Hospitality
For Sale
$2,295,000
215-223 Commerce Street, Kingsport, TN 37660
Historic downtown building with a turnkey commercial kitchen and bar build-out, plus drive-in capable overhead doors.
Property Size17,750 SF
Price / SF$129.30
Days on Market48
Property Features for 215-223 Commerce Street
General Information
Standard status
Active
Size
17,750 SF
Property subtype
Hospitality
Zoning
B-2
Occupancy
100%
Financials
Business Included
Yes
Opportunity Zone
Yes
Building Details
Building Size
17,750 SF
Year Built
1933
Listing Agency:
eXp Commercial
(214) 718-7079
Listed By:
Carson Lee Jones · License #TN #382989
Source:
7s
Added: Jun 25
Changed: Aug 8
Last Checked: Aug 11 at 5:36AM
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 eXp Commercial
Investment Insights
Based on property information with market context.
This historic downtown building totals 11,750 SF across two street addresses (215 + 223 Commerce) and is offered as one property under a single transaction. The building is currently 100% occupied by four active tenants. A turnkey commercial kitchen and bar build-out is in place for Ole Crow Tavern, and the property also includes a working craft distillery with a tasting room for King City Distillery.
The 223 Commerce gym bay features industrial-size overhead doors described as drive-in capable, supporting flexible operations for the right tenant. The property is located in a B-2 Central Business District area and is positioned for reuse considerations associated with that zoning classification. It is identified as being in a Qualified Federal Opportunity Zone, and reference is also made to a TIF District and PILOT District, along with a Tennessee Main Street boundary.
For buyers and operators, the combination of existing food-and-beverage build-out, an active distillery/tasting room, and the drive-in capable overhead doors can reduce early-site improvements and support established hospitality or related uses. Additional program eligibility is referenced, including potential façade grant, redevelopment grant, and a Downtown Kingsport loan program. Flood Zone B/X is noted as outside the 100-year floodplain, with the buyer asked to verify.
The 223 Commerce gym bay features industrial-size overhead doors described as drive-in capable, supporting flexible operations for the right tenant. The property is located in a B-2 Central Business District area and is positioned for reuse considerations associated with that zoning classification. It is identified as being in a Qualified Federal Opportunity Zone, and reference is also made to a TIF District and PILOT District, along with a Tennessee Main Street boundary.
For buyers and operators, the combination of existing food-and-beverage build-out, an active distillery/tasting room, and the drive-in capable overhead doors can reduce early-site improvements and support established hospitality or related uses. Additional program eligibility is referenced, including potential façade grant, redevelopment grant, and a Downtown Kingsport loan program. Flood Zone B/X is noted as outside the 100-year floodplain, with the buyer asked to verify.
Key Highlights
- Historic downtown building totaling 17,750 SF across 215 and 223 Commerce (sold together as one building).
- 100% occupied with four active tenants, including short‑term leases for owner‑operator flexibility.
- Turnkey commercial kitchen and bar build‑out in place (Ole Crow Tavern) plus a craft distillery with tasting room (King City Distillery).
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
$187,706
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
8.18%
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%
$3,754,120
$3.8M
Cap Rate 7%
$2,681,514
$2.7M
Cap Rate 9%
$2,085,622
$2.1M
Market Conditions
NOI Build-Up for 17,750 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
$266.3K $15.00/SF
− Vacancy
−$16.0K −$0.90/SF
EGI
$250.3K $14.10/SF
− OpEx
−$62.6K −$3.53/SF
NOI
$187.7K $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%
$3,754,120
Cap Rate 7%
$2,681,514
Cap Rate 9%
$2,085,622
Alternative Uses
Best Use
Specialty Retail
$2.68M
$2.35M – $3.13M
NOI $187,706 @ 7.0% cap · market cap 8.18%
Second Best
Industrial
$1.68M
$1.47M – $1.96M
NOI $117,565 @ 7.0% cap · market cap 5.12%
Theoretical Best
Office A
$6.65M
$5.82M – $7.75M
NOI $465,294 @ 7.0% cap · market cap 20.27%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
100%
Occupancy
Turnkey business
Opportunity
Location Intelligence
Trade Area within ½ mile
1,960
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 Retail 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?
Bar & Pub - Historic downtown building with a turnkey commercial kitchen and bar build-out, plus drive-in capable overhead doors.
Where is this bar & pub located?
The property is located at 215-223 Commerce Street Kingsport, TN.
What is the asking price?
The asking price for this property is $2,295,000.
What are key features of this property?
This property features: Historic downtown building totaling 17,750 SF across 215 and 223 Commerce (sold together as one building).; 100% occupied with four active tenants, including short‑term leases for owner‑operator flexibility.; Turnkey commercial kitchen and bar build‑out in place (Ole Crow Tavern) plus a craft distillery with tasting room (King City Distillery).
