Equipped Conventional Restaurant
New
For Sale
$350,000
3500 Fort Henry Drive, Kingsport, TN 37664
Commercial Sale, Kingsport, TN
Property Size2,656 SF
Lot Size0.17 Acres
Price / SF$131.78
Days on Market2
Property Features for 3500 Fort Henry Drive
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning
B 3
Subdivision
Not In Subdivision
Directions
From Kingsport Toward Colonial Heights. Property on right. See Sign
Standard status
Active
APN
077i A 00600 000
Size
2,656 SF
Lot size
0.17 Acres
Taxes and HOA fees
Tax Annual Amount
1761
Utilities
Sewer type
Public Sewer
Heating system
Heat Pump (Heating)
Cooling system
Heat Pump
Water source
Public
Building Details
Year built
1953
Building materials
Block, Brick, Wood Siding
Roof type
Metal
Listing Agency:
Conservus Homes
(423) 343-4307
Listed By:
Bud Beverly · License #280135
(423) 341-2027
Added: Sep 2
Last Checked: Sep 3 at 11:06AM
MLS# 10000405
Copyright © 2026 Tennessee Virginia Regional Multiple Listing Service. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
This 2,656-square-foot restaurant property at 3500 Fort Henry Drive includes a commercial kitchen, bar, dining areas, paved parking, and a broad package of equipment, furnishings, decor, smallwares, televisions, security systems, and technology intended to convey with the real estate. Kitchen improvements include commercial cooking, refrigeration, dishwashing, exhaust, prep, and ice-making equipment, while the bar includes a 14-tap draft system and 8-flavor soda dispenser. The restaurant is not currently operating.
Capital work completed during 2024-2025 includes new heat pumps throughout the building, a complete electrical rewire with dual 200-amp Leviton Smart Panels, and a fully permitted fire sprinkler system. The property occupies approximately 0.17 acre and is zoned B 3, with public water and public sewer. The roof is metal, and construction materials include block, brick, and wood siding.
Capital work completed during 2024-2025 includes new heat pumps throughout the building, a complete electrical rewire with dual 200-amp Leviton Smart Panels, and a fully permitted fire sprinkler system. The property occupies approximately 0.17 acre and is zoned B 3, with public water and public sewer. The roof is metal, and construction materials include block, brick, and wood siding.
Key Highlights
- 2,656‑square‑foot restaurant property on approximately 0.17 acre
- Extensive commercial kitchen, bar, dining, FF&E, decor, and technology package intended to convey
- 2024‑2025 improvements include new heat pumps, complete electrical rewire, and fire sprinkler system
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
$28,087
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
8.02%
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%
$561,740
$561.7K
Cap Rate 7%
$401,243
$401.2K
Cap Rate 9%
$312,078
$312.1K
Market Conditions
NOI Build-Up for 2,656 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
$39.8K $15.00/SF
− Vacancy
−$2.4K −$0.90/SF
EGI
$37.4K $14.10/SF
− OpEx
−$9.4K −$3.53/SF
NOI
$28.1K $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%
$561,740
Cap Rate 7%
$401,243
Cap Rate 9%
$312,078
Alternative Uses
Best Use
Specialty Retail
$401.2K
$351.1K – $468.1K
NOI $28,087 @ 7.0% cap · market cap 8.02%
Second Best
Industrial
$251.3K
$219.9K – $293.2K
NOI $17,592 @ 7.0% cap · market cap 5.03%
Theoretical Best
Office A
$994.6K
$870.3K – $1.16M
NOI $69,624 @ 7.0% cap · market cap 19.89%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Sprinkler system
Yes
Commercial hood
Location Intelligence
Trade Area within ½ mile
102
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 37664, TN
28,748
Population
13,914
Households
2.1
Avg Household Size
44
Median Age
34%
College-Educated
92%
High-School Grad
33.9 sq mi
ZIP Area
848
Density / Sq Mi
$61,164
Median Household Income
$37,047
Median Earnings
$817
Median Rent
$204,900
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 and bar property with commercial kitchen infrastructure, dining furnishings, and an extensive FF&E package.
Where is this conventional restaurant located?
The property is located at 3500 Fort Henry Drive Kingsport, TN.
What is the asking price?
The asking price for this property is $350,000.
What are key features of this property?
This property features: 2,656‑square‑foot restaurant property on approximately 0.17 acre; Extensive commercial kitchen, bar, dining, FF&E, decor, and technology package intended to convey; 2024‑2025 improvements include new heat pumps, complete electrical rewire, and fire sprinkler system
