Kingsport's steady, measured growth is its quiet advantage. Fast-growing markets like Nashville often

overbuild during boom cycles and pay for it in vacancy spikes. Kingsport doesn't carry thatrisk. Commercial fundamentals here are unusually tight across every sector — Office at 4.0% vacancy, Retail at 1.5%, and Multifamily at 5.6%, all outperforming national averages.

What makes this property a rare opportunity is the location: the historic core of downtown, where the inventory is finite and effectively irreplaceable. You can't build more historic buildings, and the city isn't adding new ones to the downtown center anytime soon.

Kingsport buying power per dollar of retail rent is 10% to 24% higher than Knoxville, Nashville, and Asheville, NC.

This metric is critical: rent is ultimately funded by tenant revenue, which is directly tied to the purchasing power of the surrounding population. In Kingsport, that relationship is more favorable.

215 & 223 Commerce Street is one of Downtown Kingsport’s most distinctive commercial assets — approximately 17,750 square feet of flexible space contained within a single building yet operating under two separate street addresses. That multi-address configuration is genuinely rare for the market:itgivesanownerthefootprintofalargerfacilitywhilepreservingtheoptiontooperate,brand, or sub-lease as multiple distinct storefronts and suites under one roof.

The building is100% occupied across four tenants— a tavern with a full commercial kitchen, a craft distillery, a high-end fitness operator, a destination retail concept, and a supplemental storefront. Two leases are intentionally short-term, letting a buyer underwrite a stabilized, in-place rent roll from day one and step into those spaces as the leases roll—capturing income today while retaining full control of the building going forward.

Anchor tenant Ole Crow Tavern hasinvested approximately $500,000in a fully upgraded commercial kitchen and bar — hood system, line equipment, finishes, and front-of-house infrastructureallinplace—givingthenextoperatoraturnkey,move-in-readyrestaurantplatformat a fraction of replication cost.

The 223 Commerce gym bay features industrial-size overhead doors— a rare downtown feature that supports drive-in, load-in/load-out, and higher-clearance uses: supply company, contractor showroom, plumbing/HVAC/electrical distributor, flooring or window/door showroom, or light fabrication.

Few Downtown Kingsport spaces can roll trucks or material directly into the building.

The property sits inside Kingsport's Central Business District — a TIF District, PILOT District, federally designated Qualified Opportunity Zone, and Tennessee Main Street area — making it eligible for theCity's Façade Grant, Redevelopment Grant, and Downtown Kingsport Loan programs.Qualified OZ investors can also defer and reduce capital gains tax, then grow the OZ investment capital-gains-tax-free with no depreciation recapture after a 10-year hold.

• Kingsport buying power per dollar of retail rent is 10% to 24% higher than Knoxville,Nashville, and Asheville, NC.

This metric is critical: rent is ultimately funded by tenant revenue, which is directly tied to the purchasing power of the surrounding population. In Kingsport, that relationship is more favorable.

The Property

215 & 223 Commerce Street is one of Downtown Kingsport’s most distinctive commercial assets — approximately 17,750square feet of flexible space contained within a single building yet operating under two separate street addresses. That multi-address configuration is genuinely rare for the market: it gives an owner the footprint of a larger facility while preserving the option to operate, brand, or sub-lease as multiple distinct storefronts and suites under one roof.

The building is currently 100% occupied across five active tenants — a tavern with a full commercial kitchen, a craft distillery, ahigh-end fitness operator, a destination retail concept, and a supplemental storefront use. Every lease in place today isintentionally short-term and temporary, structured so the building can deliver flexible vacancy to an owner-operator whowants to step into one or more of the existing spaces. In effect, a buyer underwrites a fully stabilized, in-place rent roll fromday one, then chooses which space(s) to occupy as leases roll — capturing the income while it lasts and retaining full control of the building going forward.

Inside the building, the prior food-and-beverage build-out is the standout asset. Anchor tenant Ole Crow Tavern has invested approximately $500,000 in a fully upgraded commercial kitchen and bar build-out — hood system, line equipment, finishes, and front-of-house infrastructure all in place. That level of turnkey F&Binfrastructure would be cost-prohibitive for a buyer to replicate from scratch and gives the next operator (or the next tenant)an immediate, move-in-ready restaurant platform.

On the 223 Commerce side, the gym space features industrial-size overhead doors — an unusual and valuablefeature in a downtown building. Those doors make the space readily convertible to a wide range of higher-clearance, drive-in, or load-in/load-out uses: a supply company, contractor showroom with stock area, plumbing/HVAC/electricaldistributor, flooring or window/door showroom, light fabrication, or commercial service operator who needs to roll trucks ormaterial directly into the building. Few Downtown Kingsport spaces can accommodate that kind of operation.

The property sits inside the City of Kingsport’s Central Business District — which is simultaneously a TIF District, a PILOT District, a federally designated Qualified Opportunity Zone, and part of the Tennessee Main Street program —placing it inside the boundary eligible for the City’s Façade Grant Program, Redevelopment Grant Program, and Downtown Kingsport Loan Program. Qualified Opportunity Zone designation additionally allows qualifying investors to defer capital gains, reduce the tax on those gains, and grow their Opportunity Zone investment capital-gains-tax-free, with no depreciation recapture, after a 10-year hold.

In-Place Tenant Roster — 100% Occupied with Owner-Operator Flexibility

The building is fully leased today, but every lease is temporary by design. A buyer underwrites in-place cash flow from day one and retains the ability to step into any of the spaces below as an owner-operator as leases roll. The same flexibility supports aninvestor strategy: re-lease at market as the temporary tenancies expire and ride the continued upward trajectory of Downtown Kingsport rents and values.

King City Distillery — Craft Distillery & Tasting Room

A working craft distillery operating inside the building under Kingsport’s B-2 Central Business District, which expressly permits distilleries with tasting rooms. The distillery contributes destination foot traffic and pairs naturally with the building’s restaurantinfrastructure — an owner-user could continue the distillery operation, fold it into a larger F&B concept, or repurpose thespace for a brewpub, winery with tasting room, or other licensed beverage producer under the same zoning category.

Website: kingcitydistillery.net

Ole Crow Tavern — Anchor F&B Tenant with ~$500,000 Commercial Kitchen Build-Out

Ole Crow Tavern occupies the building’s primary restaurant space and has invested approximately

$500,000 in a fully upgraded commercial kitchen and bar build-out — hood system, line equipment, finishes, and full front-of-house. The infrastructure stays with the building. For an owner-operator with a restaurant, brewpub, tasting room, gastropub, supper club, or ghost-kitchen concept, this is one of the most cost-advantaged F&B platforms in the market. For an investor,it is durable, replication-cost-protected restaurant space.

Website: olecrowtavern.com

G1 Elite — Fitness Tenant in the Industrial-Door Bay

G1 Elite operates a fitness facility on the 223 Commerce side of the building. The space is built out with industrial-size overhead doors — a feature that materially expands the future use set well beyond standard gym product. The samebay, with the same doors, is naturally suited to a supply company, plumbing/HVAC/electrical distributor, contractorshowroom with stock area, flooring or kitchen-and-bath showroom, light fabrication operator, or any business that needsto drive trucks or roll material directly into the building. That kind of drive-in, high-clearance footprint is exceptionally rare in Downtown Kingsport.

Website: g1elite.com

Found Objects — Destination Retail

The Owner-Operator Path — Cash Flow Now, Vacancy on Demand

Most Downtown buildings force a buyer to choose between income and occupancy. This one doesn’t. The five in-placetenancies produce contractual rent today, and because each lease is intentionally temporary the building is structured todeliver any combination of the spaces back to the owner without a tenant displacement fight. That gives a buyer three clean paths:

• Income first. Hold the rent roll as-is, collect on the in-place tenancies, and step into individual spacesselectively as leases roll.
• Operator first. Take the industrial-door bay for an owner-occupied concept on day one, and continue tocollect rent from the remaining tenancies.
• Reposition. Use the temporary lease structure to recapture the building over time and reposition it as a single-tenant, mixed-use, or hospitality redevelopment under B-2 zoning.

B-2 Central Business District — Exceptionally Broad Permitted Use List

The property sits inside Kingsport’s B-2 Central Business District, the city’s most flexible and use-permissive commercial zone. Permitted principal uses include — but are far from limited to — the following, making the building suitablefor a wide range of tenant mixes or owner-user concepts:

Retail & Shopping

Clothing and apparel boutiques, gift and card shops, bookstores, antique and consignment, jewelry, art galleries and artist studios, home goods and furniture showrooms, florists, specialty food retailers (butcher, bakery, cheese, chocolatier), wine and liquor stores, music and record shops, sporting goods and bike shops, toy and hobby stores, pet supply, cigar/tobacco, novelty and souvenir shops. Golf cart sales were explicitly approved by the Kingsport Board of Zoning Appeals in 2025 as a B-2 principal use.

Food & Drink

Sit-down, fast-casual, ethnic, and fine dining restaurants; cafés, coffee shops, tea houses; bakeries and pastry shops; ice cream, gelato, and frozen yogurt; juice and smoothie bars; delis and sandwich shops; bars, taverns, lounges, and wine bars. The code also expressly permits brewpubs and craft breweries (up to 10,000 SF of production area in commercialzones), craft wineries, and distilleries with tasting rooms

— a natural fit given the in-place Ole Crow Tavern kitchen and King City Distillery operation. Cat cafés were approvedby BZA for the Boops & Beans concept in 2024.

Light Trade, Industrial & Specialty — The Industrial-Door Use Set

Plumbing/HVAC showroom + office, electrical contractor with counter sales, appliance and kitchen/bath showrooms, flooring and window/door companies, printing and sign shops, commercial/ghost kitchens, tech repair, light indoor fabrication, AV/low-voltage, security, and fire protection system companies, small accessory data centers, and secure asset storage (exotic/vintage vehicles, precious metals, financial assets, art, and other high-value assets). The 223 Commerce industrial-size doors make this category genuinely operable in the building — not just theoretically permitted.

Professional & Office

Law, accounting, and CPA offices; architecture, engineering, and design firms; real estate, insurance, and financialadvisory; banks and credit unions; medical, dental, optometry, chiropractic, and physical therapy; mental health and counseling; tax preparation; marketing, advertising, and PR agencies;

software and tech startups; co-working spaces; nonprofit and association offices; small accessory data centers.

Personal Services

Hair and nail salons, barbershops, day spas, massage therapy, tanning, tailoring and alterations, dry cleaners and laundromats, shoe repair, tattoo and piercing studios.

Entertainment, Culture & Recreation

Movie and performing-arts theaters, music venues and concert halls, dance/yoga/pilates studios, indoor fitness and gyms (the in-place G1 Elite use), martial arts, art classes and maker studios, escape rooms, arcades, museums, galleries, event venues and banquet halls, private clubs.

Lodging

Hotels, boutique hotels, and bed & breakfasts.

Education & Instruction

Tutoring centers; music, art, and dance lessons; indoor trade and vocational schools.

Residential

Residential uses permitted (except single-family detached dwellings) — supporting an upper-level or rear-of-building loft conversion if a buyer wants to reposition any portion of the asset.

Downtown Kingsport Incentives & Tax Advantages

Beyond the Opportunity Zone, the property’s location inside the Central Business District makes it eligible for additional localincentive programs, which may include the Façade Grant Program, Redevelopment Grant Program, and Downtown Kingsport Loan Program — designed to help offset the cost of purchase, renovation, and façade improvements. Buyer to verify current program availability and eligibility with the City of Kingsport and Downtown Kingsport Association.

Qualified Opportunity Zone tax benefits available to eligible investors include:

• Deferral of federal tax on capital gains rolled into a Qualified Opportunity Fund that acquires and substantiallyimproves property in the zone
• Reduction of the deferred gain depending on holding period
• Elimination of federal tax on new gains generated by the Opportunity Zone investment if held for 10+ years — with nodepreciation recapture on the OZ basis

Buyer should consult their CPA or tax advisor regarding eligibility and current IRS rules.

Location

• Downtown Kingsport core — steps from Broad Street, Church Circle, and the Heritage Trail
• Purpose-planned urban fabric — wide streets and sidewalks, alleys, a true grid system, and 44 city blocks ofwalkable downtown
• Walkable, tree-lined streetscape with 1,800+ free public parking spaces Downtown
• Walk Score area rating: "Very Walkable"
• Active revitalization district — new water, sewer, power, and streetscape investment underway
• Growing residential base — loft conversions (Bridwell on Broad), townhomes, and the Brickyard Village development bringing 400+ new residences nearby; Downtown lofts currently appraising and selling at$250+/SF
• Event-driven foot traffic — Fun Fest, Santa Train, First Thursday Sip & Stroll, Kingsport Farmers Market,Sculpture Walk, and year-round Downtown programming
• Abundant outdoor recreation nearby — South Fork of the Holston River, 10-mile Greenbelt, Bays MountainPark, skate park, bike pump track, mountain biking and hiking trails, baseball/softball fields, soccer fields, and sand volleyball
• Access: ~1 mile to I-26, connecting to I-81; within a day’s drive of roughly 70% of the U.S. population; ~14 miles / 21 minutes to Tri-Cities Airport with direct flights to CLT, ATL, DFW, ORD, MCO/SFB, IAD, PIE, and AZA
• Anchored by employment — minutes from Eastman Chemical (one of the largest employers in the region), Holston Valley Medical Center, and the Kingsport Academic Village (Northeast State and ETSU Downtown)

Highlights

• ±17,750 SF historic Downtown asset across two street addresses (215 + 223 Commerce) in one building
• 100% occupied with five active tenants — Ole Crow Tavern, King City Distillery, G1 Elite, Found Objects, andsupplemental storefront/storage
• All leases temporary by design — building can deliver vacancy on demand to support an owner-operatorstrategy
• ~$500,000 turnkey commercial kitchen and bar build-out in place (Ole Crow Tavern) — replication-cost protection for the next F&B operator
• Working craft distillery with tasting room in place (King City Distillery)
• Industrial-size overhead doors in the 223 Commerce gym bay — drive-in capable, supports a supplycompany, contractor showroom, plumbing/HVAC/electrical distributor, flooring or kitchen-and-bath showroom,or light fabrication operator
• B-2 Central Business District — one of Kingsport’s most flexible zoning classifications
• Qualified federal Opportunity Zone — significant federal tax advantages available
• Located inside Kingsport’s TIF District, PILOT District, and Tennessee Main Street boundary
• Eligible for downtown Façade Grant, Redevelopment Grant, and Downtown Kingsport Loan Programincentives

• Flood Zone B/X — outside the 100-year floodplain (buyer to verify)
• Investment or owner-user sale, sold together as one building under a single transaction

Who This Property Suits

• Restaurant or hospitality owner-operator who wants a $500K turnkey kitchen platform without the build cost
• Supply company, distributor, or contractor showroom looking for industrial-door, drive-in capabilityinside a walkable Downtown footprint
• Brewpub, distillery, or winery operator expanding alongside (or replacing) the existing tasting-roomconcept
• Mixed-use operator splitting the two addresses across complementary concepts — F&B + retail, gym +showroom, or event + tasting room
• Healthcare, civic, or professional tenant using the multi-address layout for distinct patient or publicentrances
• Adaptive-reuse developer recapturing the building over time as temporary leases roll, with Downtownloft comps at $250+/SF
• Investor positioning for the continued upward trajectory of Downtown Kingsport rents and values, withOpportunity Zone tax advantages available to qualifying buyers

Kingsport — America’s First "Model City"

Kingsport was purpose-designed as a planned city in the early 20th century, and Downtown’s pedestrian grid, ChurchCircle roundabout, and civic architecture reflect that intentionality. After a period of 20th-century decline, the Downtowndistrict has been on a steady upswing, driven by a city-led master plan, private redevelopment, and public infrastructure investment. The result is an emerging, revitalized Downtown with real momentum: active storefronts, growing residentialdensity, a 1.8-mile Heritage Trail, public art, breweries, restaurants, and a dense calendar of festivals and markets.

Offered For Sale

Sold together as one building under a single transaction. Serious inquiries only, tours available upon request. Pleasecontact the listing agent.

Other Possible Uses

Beyond the uses outlined above, Kingsport’s B-2 Central Business District is one of the most permissive commercialclassifications in the city, designed to welcome a wide mix of tenant concepts. The categories below are illustrative of thebroader universe of uses a buyer or tenant could explore at 215 & 223 Commerce — particularly given the building’s two-address configuration, the in-place commercial kitchen, the in-place distillery, the industrial-door gym bay, and the prominentDowntown storefront frontage. Each is offered as an idea-generation list; specific operations should be confirmed with the City of Kingsport for any required permits, licensing, or use approvals.

Government & Civic Offices

Federal, state, county, and municipal office space — including U.S. Post Office and USPS retail, Social Security Administration (SSA) field offices, U.S. Department of Veterans Affairs (VA) clinics and benefits offices, IRS taxpayerassistance centers, USDA service centers, U.S. Census Bureau offices, Department of Labor / workforce development and career centers, military recruiting stations (Army, Navy, Air Force, Marines, Coast Guard, National Guard),congressional and U.S. Senate district offices; Tennessee Department of Human Services, Tennessee Department of Health, Tennessee Department of Safety / driver services (DMV), Tennessee Department of Revenue, TBI / state law enforcement satellite offices, state senator and state representative district offices; Sullivan County clerk, register of deeds,trustee, assessor, election commission, juvenile services, probation/parole, and child support satellite offices; City of Kingsportadministrative annex, planning & zoning, code enforcement, economic development, public works, parks & recreation, andpublic library branch space; courthouse annex, public defender, district attorney satellite, and mediation/arbitration offices; chamber of commerce, visitor center, Main Street program offices, and other civic and quasi-governmental tenants.

Healthcare, Wellness & Medical Services

Urgent care, primary care, pediatric and women’s health clinics, dental and orthodontic, optometry and vision, dermatology, ENT, allergy, audiology, physical and occupational therapy, sports medicine and rehabilitation, dialysis centers, imagingand diagnostic labs, blood donation centers, behavioral health and counseling, substance use treatment, telehealth hubs, med spa and aesthetics.

Childcare & Family Services

Licensed daycare, preschools, Montessori and learning centers, after-school enrichment programs, family resource centers, adoption and foster-support agencies.

Religious, Nonprofit & Community Organizations

Houses of worship and fellowship halls, denominational and ministry offices, community centers, civic clubs (Rotary, Lions, Kiwanis), Chamber of Commerce satellite space, foundation and nonprofit headquarters, social-service and food-pantry administrative offices.

Maker, Creative & Media Production

Maker spaces and shared shop bays, woodworking and metal-fabrication studios, podcast and recording studios, photography and videography studios, film and content production, graphic design and creative agencies.

Financial Services

Bank branches and credit union locations, ATM lobbies, mortgage and lending offices, tax preparation, wealth management, family offices, fintech storefronts.

Retail & Shopping (Expanded)

Boutiques, gift shops, bookstores, antique/consignment, art galleries, jewelry, home goods, florists, specialty food retailers (bakery, butcher, chocolatier), wine & liquor, music/record shops, sporting goods, toys, hobby, pet supply, cigar/tobacco, novelty/souvenir, golf cart sales, outdoor outfitters, bicycle shops, eyewear/optical, vape and CBD retailers, comic and collectibles shops, board game stores, vintage and resale, mobile phone and electronics, kitchenware and cookware, fabric/quilting and craft supply.

Food & Drink (Expanded)

Sit-down, fast-casual, ethnic and fine-dining restaurants, food halls, cafes, coffee shops, tea houses, bakeries and patisseries, ice cream / gelato / frozen yogurt, juice and smoothie bars, delis and sandwich shops, bars, wine bars,taverns, lounges, brewpubs, craft breweries, distilleries with tasting rooms, wineries with tasting rooms, cat cafes, dessertbars, hookah lounges, supper clubs, pop-up dinner concepts, commercial/ghost kitchens.

Professional & Office (Expanded)

Law, CPA and accounting, architecture, engineering, real estate, insurance, financial advisory, banking, marketing/PR, software, tech startups, business incubators and accelerators, co-working, executive suites, nonprofit offices, talent and staffing agencies, title and escrow companies, court reporting, IT managed services, cybersecurity firms, AI and data consultancies, government affairs and lobbying offices.

Personal Services (Expanded)

Hair and nail salons, barbershops, blow-dry bars, day spas, massage therapy, brow/lash studios, tanning, tailoring and alterations, dry cleaners, shoe repair, watch and jewelry repair, key-cutting, tattoo and piercing studios, pet grooming, mobile-device repair, eyewear adjustment, locksmiths.

Entertainment, Culture & Recreation (Expanded)

Movie theaters, performing arts and music venues, comedy clubs, dance/yoga/pilates/barre studios, fitness centers, CrossFit boxes, martial arts and boxing gyms, escape rooms, arcades, virtual-reality and immersive experience venues, golf simulators, axe-throwing, bowling alleys, mini bowling, billiards/pool halls, rock climbing walls,tactical/defensive training facilities, gaming and esports venues, museums, galleries, event and banquet venues, private clubs, speakeasy and lounge concepts, cigar lounges.

Lodging & Residential-Style Uses (Expanded)

Boutique hotels, bed & breakfasts, short-term and extended-stay rentals, urban lofts, corporate housing, furnished executivesuites, hostel-style or themed lodging concepts.

Education & Instruction (Expanded)

Tutoring centers, test-prep, language schools, music/art/dance instruction, coding bootcamps, indoor trade andvocational schools, culinary schools, continuing education and professional certification, charter or micro-school satellitelocations.

Light Trade, Industrial & Specialty Uses (Expanded — Industrial-Door Bay)

Plumbing/HVAC, electrical, flooring, kitchen & bath, appliance, window & door showrooms; printing and sign shops; tech repair;AV/low-voltage, security and fire-protection contractors; light indoor fabrication; small accessory data centers; secure asset storage (exotic/vintage vehicles, precious metals, financial assets, art, and other high-value assets); commercial supplydistributors and contractor counter-sales operators — all naturally supported by the 223 Commerce industrial-size overheaddoors.

Investment Summary

• ±17,750 SF total building — multi-address configuration (215 & 223 Commerce) inside a single structure
• B-2 Central Business zoning — maximum use flexibility

• Downtown core location — walkable, event-driven, with active ongoing reinvestment
• 100% occupied with five active tenants on temporary leases — buyer underwrites in-place income andchooses when to take occupancy
• Turnkey food-and-beverage infrastructure in place — Ole Crow Tavern’s ~$500,000 commercial kitchen andbar build-out stays with the building
• In-place craft distillery operation (King City Distillery) under a B-2 use category that expressly permitsdistilleries with tasting rooms
• Industrial-size overhead doors in the gym bay — supply-company / contractor-showroom / light-industrial capableinside a Downtown footprint
• Located inside a TIF District, PILOT District, Tennessee Main Street district, and federally designatedOpportunity Zone
• Flood Zone B/X — outside the 100-year floodplain (buyer to verify current FEMA designation)
• Eligible for City incentives — Façade Grant, Redevelopment Grant, and Downtown Kingsport LoanProgram
• Sold together as one building under a single transaction

Property Stats

Offered As: Single sale, combined parcels

Total Building Size: ±17,750 SF (223 Commerce ±11,250 SF + 215 Commerce ±6,500 SF per Sullivan Countyrecords)

Lot Size: ±0.40 acres combined (±17,424 SF) — 0.16 acres (±6,970 SF) + 0.24 acres (±10,454 SF)

Location: Heart of Downtown Kingsport — the city’s revitalized commercial core

Zoning: B-2 Central Business District (City of Kingsport)

Parcel (215 Commerce): 046P-C-012.00

Special Districts: Opportunity Zone, TIF District, PILOT District, Tennessee Main Street

Flood Zone: B/X — outside the 100-year floodplain (buyer to confirm minimal vs. moderate designation with currentFEMA maps)

Submarket: Downtown Kingsport / Kingsport-Bristol CBSA

All information contained herein has been obtained from sources deemed reliable; however, no representation or warranty is made as to its accuracy. Prospective purchasers should verify all square footage, zoning compliance, lease structure and remaining lease terms, Opportunity Zone boundaries, incentive program eligibility, flood zone designation, and permitted uses with the appropriate authorities and their own professional advisors. Public records reflect the two addresses as separate parcels; consult thelisting agent for current tax, title, and survey details.

For showings and additional information, contact the listing agent.