Restaurant Property with
For Sale
$224,900
Pending
2705 John B Dennis Highway, Kingsport, TN 37660
Restaurant-ready property includes a large walk-in cooler and outdoor space with convenient access off a four-lane highway.
Property Size1,848 SF
Days on Market554
Property Features for 2705 John B Dennis Highway
General Information
Standard status
Pending
Size
1,848 SF
Property subtype
General Commercial
Site & Location
Highway Access
Yes
Road Access
Yes
Amenities
walk-in cooler
outdoor space
Window Air Conditioning, Heat Pump
3
Refrigerator
Metal
226 X 136 X 155 X 124 IRR
Building Details
Year Built
1951
Listing Agency:
TCI Group - Jerry Petzoldt Agency, LLC
(423) 230-0255
Listed By:
Chris Ramsey · License #369704
Source:
Xome
Added: Feb 3, 2025
Changed: Aug 8
Last Checked: Aug 11 at 4:45AM
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 property is a restaurant-focused commercial space that would also suit a bar or retail use. The improvements include a large walk-in cooler and outdoor space, supported by a large parking area for customer access.
The site is located on John B Dennis Highway in Kingsport, Tennessee, with quick access off a four-lane state highway. It is positioned near Indian Path Hospital, Kingsport Speedway, and Cox Tractor.
The property is for sale, and showings are required before 11:30 AM Monday through Saturday.
The site is located on John B Dennis Highway in Kingsport, Tennessee, with quick access off a four-lane state highway. It is positioned near Indian Path Hospital, Kingsport Speedway, and Cox Tractor.
The property is for sale, and showings are required before 11:30 AM Monday through Saturday.
Key Highlights
- Restaurant‑ready property with a large walk‑in cooler and outdoor space
- Quick access off a four‑lane state highway (John B Dennis Highway)
- Metal roof
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
$19,543
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
8.69%
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%
$390,860
$390.9K
Cap Rate 7%
$279,186
$279.2K
Cap Rate 9%
$217,144
$217.1K
Market Conditions
NOI Build-Up for 1,848 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
$27.7K $15.00/SF
− Vacancy
−$1.7K −$0.90/SF
EGI
$26.1K $14.10/SF
− OpEx
−$6.5K −$3.53/SF
NOI
$19.5K $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%
$390,860
Cap Rate 7%
$279,186
Cap Rate 9%
$217,144
Alternative Uses
Best Use
Specialty Retail
$279.2K
$244.3K – $325.7K
NOI $19,543 @ 7.0% cap · market cap 8.69%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$692.0K
$605.5K – $807.4K
NOI $48,443 @ 7.0% cap · market cap 21.54%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Highway access
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
229
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.
Frequently Asked Questions
What type of property is this?
Conventional restaurant - Restaurant-ready property includes a large walk-in cooler and outdoor space with convenient access off a four-lane highway.
Where is this conventional restaurant located?
The property is located at 2705 John B Dennis Highway Kingsport, TN.
What is the asking price?
The asking price for this property is $224,900.
What are key features of this property?
This property features: Restaurant‑ready property with a large walk‑in cooler and outdoor space; Quick access off a four‑lane state highway (John B Dennis Highway); Metal roof
