63-Unit Limited-Service
For Sale
$5,500,000
2162 Parkway Pigeon, Pigeon Forge, TN 37863
Three-story lodging property with indoor and outdoor pools, recreation space, and meeting facilities.
Property Size32,937 SF
Days on Market193
Property Features for 2162 Parkway Pigeon
General Information
Standard status
Active
Size
32,937 SF
Class
C
Property subtype
Motel
Building Details
Building Size
32,937 SF
Year Built
1971
Listing Agency:
NAI Koella RM Moore
(865) 453-8111
Listed By:
David Gothard · License #262082
(865) 453-8111
Source:
Thebrokerlist
Added: Feb 18
Changed: Aug 29
Last Checked: Aug 29 at 2:14PM
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 NAI Koella RM Moore
Investment Insights
Based on property information with market context.
This fee-simple lodging asset contains 63 units across three stories and operates as a limited-service hotel. The property includes an enclosed pool, an outdoor pool with a play area, a picnic pavilion, and a fitness room. Additional facilities include a meeting room with an attached kitchen.
The property occupies a position on the southbound side of the Parkway, identified as US 441, in Pigeon Forge, Tennessee. Its rear boundary reaches the West Prong of the Little Pigeon River. The Parkway serves as the primary artery for Sevier County’s stated annual visitor volume of 15 million. The hotel was built in 1971, and the seller will also consider lease proposals.
The property occupies a position on the southbound side of the Parkway, identified as US 441, in Pigeon Forge, Tennessee. Its rear boundary reaches the West Prong of the Little Pigeon River. The Parkway serves as the primary artery for Sevier County’s stated annual visitor volume of 15 million. The hotel was built in 1971, and the seller will also consider lease proposals.
Key Highlights
- 63‑unit, 3‑story limited‑service hotel
- Fee‑simple interest in a lodging property built in 1971
- Enclosed pool plus outdoor pool and play area
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
$163,335
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
2.97%
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%
$3,266,700
$3.3M
Cap Rate 7%
$2,333,357
$2.3M
Cap Rate 9%
$1,814,833
$1.8M
Market Conditions
NOI Build-Up for 32,937 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
$592.9K $18.00/SF
− Vacancy
−$249.0K −$7.56/SF
EGI
$343.9K $10.44/SF
− OpEx
−$180.5K −$5.48/SF
NOI
$163.3K $4.96/SF
Area
Sevier County, TN
Vacancy
42.00%
Lease Rate
$18.00 /SF/Yr
Expense Ratio
52.50%
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%
$3,266,700
Cap Rate 7%
$2,333,357
Cap Rate 9%
$1,814,833
Alternative Uses
Best Use
Hotel Hospitality
$2.33M
$2.04M – $2.72M
NOI $163,335 @ 7.0% cap · market cap 2.97%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$13.89M
$12.15M – $16.21M
NOI $972,300 @ 7.0% cap · market cap 17.68%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
302
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 37863, TN
6,988
Population
5,570
Households
1.3
Avg Household Size
40
Median Age
12%
College-Educated
74%
High-School Grad
17.2 sq mi
ZIP Area
406
Density / Sq Mi
$53,587
Median Household Income
$31,235
Median Earnings
$933
Median Rent
$253,400
Median Home Value
Questions? Ask Rey
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Similar Off Market Nearby
- The Inn at Christmas Place — 119 Christmas Tree Ln, Pigeon Forge, TN 37863
- Econo Lodge Pigeon Forge Riverside — 2440 Parkway, Pigeon Forge, TN 37863
- Hampton Inn Pigeon Forge — 2497 Teaster Ln, Pigeon Forge, TN 37863
- Hilton Garden Inn Pigeon Forge — 2481 Teaster Ln, Pigeon Forge, TN 37863
- SpringHill Suites Pigeon Forge — 120 Christmas Tree Ln, Pigeon Forge, TN 37863
Frequently Asked Questions
What type of property is this?
Motel - Three-story lodging property with indoor and outdoor pools, recreation space, and meeting facilities.
Where is this motel located?
The property is located at 2162 Parkway Pigeon Pigeon Forge, TN.
What is the asking price?
The asking price for this property is $5,500,000.
What are key features of this property?
This property features: 63‑unit, 3‑story limited‑service hotel; Fee‑simple interest in a lodging property built in 1971; Enclosed pool plus outdoor pool and play area
