Drug Store with Long-Term
New
For Sale
$2,711,848
4106 Fort Henry Drive, Kingsport, TN 37663
CVS occupies a high-traffic site at a signalized intersection within a healthcare-focused trade area.
Property Size10,880 SF
Days on Market4
Property Features for 4106 Fort Henry Drive
General Information
Standard status
Active
Size
10,880 SF
Property subtype
Commercial
Lease Term
± 11 Years
Net Operating Income
$196,608
Additional Details
Traffic Count
31,000 vehicles/day
Building Details
Building Size
10,880 SF
Year Built
2001
Listing Agency:
Matthews Real Estate Investment Services - Orange County
(512) 430-4466
Listed By:
Christian Becker · License #License No. 794055
(512) 430-4466
Source:
Matthews
Added: Aug 8
Changed: Aug 9
Last Checked: Aug 11 at 4:38AM
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 Matthews Real Estate Investment Services - Orange County
Investment Insights
Based on property information with market context.
The property is a drug store at 4106 Fort Henry Drive in Kingsport, Tennessee, completed in 2001 and occupied by CVS since 2000. CVS extended its lease for 20 years in 2017, with approximately 11 years remaining in the base term and additional renewal options. Contractual rent increases of 3% occur every five years during option periods.
The store sits at a signalized intersection with exposure to approximately 31,000 vehicles per day. Its healthcare-oriented setting includes Brookdale Colonial Heights directly across the street, with 60 beds, and Brookdale Rock Springs approximately 1.5 miles away, with 70 beds. Store visitation ranks in the 81st percentile statewide, placing it among the top 24 of 121 Tennessee stores, and it is reported as the second-most visited CVS in Kingsport.
The lease is guaranteed by CVS Health Corporation, identified in the source information as a Fortune 500 company with an S&P credit rating of BBB.
The store sits at a signalized intersection with exposure to approximately 31,000 vehicles per day. Its healthcare-oriented setting includes Brookdale Colonial Heights directly across the street, with 60 beds, and Brookdale Rock Springs approximately 1.5 miles away, with 70 beds. Store visitation ranks in the 81st percentile statewide, placing it among the top 24 of 121 Tennessee stores, and it is reported as the second-most visited CVS in Kingsport.
The lease is guaranteed by CVS Health Corporation, identified in the source information as a Fortune 500 company with an S&P credit rating of BBB.
Key Highlights
- CVS has operated at the property since 2000 and extended the lease for 20 years in 2017
- Approximately 11 years remain on the base lease term, plus multiple renewal options
- Lease options include 3% rent increases every five years
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
$168,103
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
6.20%
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%
$3,362,060
$3.4M
Cap Rate 7%
$2,401,471
$2.4M
Cap Rate 9%
$1,867,811
$1.9M
Market Conditions
NOI Build-Up for 10,880 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
$250.7K $23.04/SF
− Vacancy
−$10.5K −$0.97/SF
EGI
$240.1K $22.07/SF
− OpEx
−$72.0K −$6.62/SF
NOI
$168.1K $15.45/SF
Area
Sullivan County, TN
Vacancy
4.20%
Lease Rate
$23.04 /SF/Yr
Expense Ratio
30.00%
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%
$3,362,060
Cap Rate 7%
$2,401,471
Cap Rate 9%
$1,867,811
Alternative Uses
Best Use
Retail
$2.40M
$2.10M – $2.80M
NOI $168,103 @ 7.0% cap · market cap 6.20%
Second Best
Specialty Retail
$1.64M
$1.44M – $1.92M
NOI $115,056 @ 7.0% cap · market cap 4.24%
Theoretical Best
Office A
$4.07M
$3.57M – $4.75M
NOI $285,206 @ 7.0% cap · market cap 10.52%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
31,000 VPD
Traffic count
Location Intelligence
Trade Area within ½ mile
371
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 37663, TN
14,392
Population
6,679
Households
2.2
Avg Household Size
47
Median Age
34%
College-Educated
95%
High-School Grad
25.8 sq mi
ZIP Area
558
Density / Sq Mi
$76,122
Median Household Income
$45,399
Median Earnings
$886
Median Rent
$224,900
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.
Similar Off Market Nearby
- Deborah E. Carson, PharmD — 4106 Fort Henry Dr, Kingsport, TN 37663
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- Colonial Heights Pharmacy — 4221 Fort Henry Dr, Kingsport, TN 37663
- Ingles Pharmacy — 4335 Fort Henry Dr, Kingsport, TN 37664
- Arnold Bolling Jr, DPH — 4221 Fort Henry Dr, Kingsport, TN 37663
Frequently Asked Questions
What type of property is this?
Drug store - CVS occupies a high-traffic site at a signalized intersection within a healthcare-focused trade area.
Where is this drug store located?
The property is located at 4106 Fort Henry Drive Kingsport, TN.
What is the asking price?
The asking price for this property is $2,711,848.
What are key features of this property?
This property features: CVS has operated at the property since 2000 and extended the lease for 20 years in 2017; Approximately 11 years remain on the base lease term, plus multiple renewal options; Lease options include 3% rent increases every five years
