Downtown Tavern and Distillery
For Sale
Contact for pricing
215 Commerce St, Kingsport, TN 37660
For sale 6,500 SF downtown building occupied by a tavern with commercial kitchen and a craft distillery.
Property Size6,500 SF
Price / SF$150.77
Days on Market62
Property Features for 215 Commerce St
General Information
Standard status
Active
Size
6,500 SF
Class
B
Property subtype
Retail
Zoning
B-2 Central Business District
Occupancy
100%
Lease Type
NNN
Investment Type
Stabilized
Restaurant
Commercial Hood
Yes
Liquor License
Yes
Additional Details
Business Included
Yes
Building Details
Buildings
1
Tenancy
Multi
Listing Agency:
EXP Commercial
(214) 718-7079
Listed By:
Carson Jones · License #382989
Source:
Crexi
Added: Jun 11
Changed: Aug 8
Last Checked: Aug 9 at 11:39AM
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.
215 Commerce St is a distinctive downtown commercial building totaling approximately 6,500 square feet. The property is 100% occupied by two tenants, including a tavern with a full commercial kitchen and an on-site craft distillery.
The building is located in Downtown Kingsport, where the remarks indicate inventory in the downtown center is limited. The asset is positioned as part of the historic core of downtown, with no mention of new buildings being added to that center in the near term.
This setup offers practical fit for buyers seeking an already-leased hospitality-focused asset with an operating tavern concept supported by a commercial kitchen, along with a craft distillery use within the same property. Prospective tenants and operators may also look at the building’s current configuration as a guide to how hospitality and beverage production uses can be accommodated under shared ownership in a downtown setting.
The building is located in Downtown Kingsport, where the remarks indicate inventory in the downtown center is limited. The asset is positioned as part of the historic core of downtown, with no mention of new buildings being added to that center in the near term.
This setup offers practical fit for buyers seeking an already-leased hospitality-focused asset with an operating tavern concept supported by a commercial kitchen, along with a craft distillery use within the same property. Prospective tenants and operators may also look at the building’s current configuration as a guide to how hospitality and beverage production uses can be accommodated under shared ownership in a downtown setting.
Key Highlights
- Approximately 6,500 SF commercial building at 215 Commerce Street in downtown Kingsport
- 100% occupied by two tenants, including a tavern
- Tavern tenant includes a full commercial kitchen
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
$68,738
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
7.01%
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%
$1,374,760
$1.4M
Cap Rate 7%
$981,971
$982.0K
Cap Rate 9%
$763,756
$763.8K
Market Conditions
NOI Build-Up for 6,500 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
$97.5K $15.00/SF
− Vacancy
−$5.9K −$0.90/SF
EGI
$91.7K $14.10/SF
− OpEx
−$22.9K −$3.53/SF
NOI
$68.7K $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%
$1,374,760
Cap Rate 7%
$981,971
Cap Rate 9%
$763,756
Alternative Uses
Best Use
Specialty Retail
$982.0K
$859.2K – $1.15M
NOI $68,738 @ 7.0% cap · market cap 7.01%
Second Best
Industrial
$615.0K
$538.2K – $717.5K
NOI $43,052 @ 7.0% cap · market cap 4.39%
Theoretical Best
Office A
$2.43M
$2.13M – $2.84M
NOI $170,389 @ 7.0% cap · market cap 17.39%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Turnkey business
Opportunity
Yes
Commercial hood
Yes
Liquor license
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 Industrial 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 - For sale 6,500 SF downtown building occupied by a tavern with commercial kitchen and a craft distillery.
Where is this bar & pub located?
The property is located at 215 Commerce St Kingsport, TN.
What is the asking price?
The asking price for this property is $980,000.
What are key features of this property?
This property features: Approximately 6,500 SF commercial building at 215 Commerce Street in downtown Kingsport; 100% occupied by two tenants, including a tavern; Tavern tenant includes a full commercial kitchen
