Tavern & Distillery 100% Occupied
Retail | 6,500 SqFt
Marketing description
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 that risk.
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 Commerce Street is one of Downtown Kingsport's most distinctive commercial assets — approximately 6,500 square feet.
The building is 100% occupied across two tenants — a tavern with a full commercial kitchen and craft distillery.
Investment highlights
- ±6,500 SF historic Downtown asset
- 100% occupied with five active tenants — Ole Crow Tavern, King City Distillery
- ~$500,000 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)
- 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 Program incentives
- Flood Zone B/X — outside the 100-year floodplain (buyer to verify)
- Anchor tenant Ole Crow Tavern has invested approximately $500,000 in a fully upgraded commercial kitchen and bar — hood system, line equipment, finishes, and front-of-house infrastructure all in place — giving the next operator a turnkey, move-in-ready restaurant platform at a fraction of replication cost
- 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 the City'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
- The building is fully leased today, with two tenants to re-lease at market rate in 2028 & 2030 and ride Downtown Kingsport's rising rents
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