2 Locations For Sale

Where Fortune 500 Business Travel Meets 12M+ Smoky Mountains Travelers

Boutique Hotel Opportunity — The Rate Data Supports the Concept

Downtown Kingsport has no boutique hotel. Not one. The city's lodging supply is concentrated inhighway-corridor select-service product — and even that stock is commanding rates that make the boutique math work.

Kingsport's leading branded hotels currently publish nightly rates of $130 to $137, with the market averaging approximately $116 across all properties. During compression events — Bristol Motor Speedway raceweekends and Kingsport's Fun Fest, which draws visitors from across the region — published rates climb past $210 per night, proving the market absorbs premium pricing whenever supply tightens.

Now compare the peer markets. Nashville's Davidson County hotels averaged a $199 daily rate at 67%occupancy in 2025. Franklin and Brentwood's Cool Springs corridor — a suburban select-service market with more than 6,000 hotel rooms — typically prices between $120 and $170 per night, with peaks well above $230. Kingsport's top-of-market rates are already within striking distance of Cool Springs product, while the acquisition basis in downtown Kingsport is a fraction of Williamson County land and construction costs. The rate gap is narrow; the basis gap is enormous. That spread is the opportunity.

A differentiated historic-building hotel at this corner would not compete on rate with highway select-servicestock — it would establish its own tier. In comparable secondary markets, boutique conversions in historicdowntown cores routinely price $30 to $60 above the local branded average, driven by guests who choose character, walkability, and a downtown address over an interstate exit. With Broad Street's restaurants,entertainment venues, and the momentum of 2,500 new downtown residential units, the demand drivers forexactly that guest are already in place.

The Stripped Second Floor Is the Substantial Improvement Path

For Opportunity Zone investors, the building's configuration is a rare advantage: the second floor is already stripped to shell, presenting a pre-defined substantial improvement path for Qualified Opportunity Fund compliance.

Rather than demolition risk and discovery surprises, the redevelopment scope is visible from day one — guest rooms above, lobby, food and beverage, and street-level activation below. Combined with thedowntown incentive stack — TIF, PILOT, KEDB façade and redevelopment grants, and Tennessee Main Street programs — the capital stack for a boutique hospitality project here is stronger than the raw purchase price suggests.

Whether repositioned as a boutique hotel, luxury loft apartments, mixed-use residential, creativeoffice, or hospitality-driven redevelopment, few properties in Downtown Kingsport offer comparable scale, visibility, accessibility, and redevelopment flexibility in an opportunity zone.

Positioned on one of Downtown Kingsport’s most prominent intersections, 244-252 Broad Street presents arare opportunity to acquire a ±25,043-square-foot historic mixed-use building with immediate income, exceptional redevelopment potential, and arguably one of the strongest boutique hotel sites in the downtown market.

Among Downtown Kingsport’s historic commercial inventory, few buildings appear better positioned for boutique hotel redevelopment. Several characteristics distinguish this opportunity: This highly visibledowntown corner at Broad & Center combines historic character with exceptional redevelopment potential. The property features immediate access to adjacent structured public parking, a passenger elevator, and an expansive ±8,000+ SF second floor that has been stripped and is ready for redevelopment. Located within the walkablerestaurant and entertainment district.

For hotel projects requiring 50,000 SF, this property can be combined with 255 Broad Street here: Link to 255 Broad Brochure.

$4000 Rental Income During Buildout

Rate data reflects published pricing from major hotel booking platforms and market research sources as of mid-2026(Nashville Convention & Visitors Corp; Booking.com; Trivago; Priceline; Trip.com; Visit Franklin) and is provided for illustrative purposes only. Figures for the Kingsport and Franklin or Brentwood markets are not STR- or CoStar-audited market ADR. Prospective purchasers should conduct their own hospitality feasibility analysis and verify all market data,incentive eligibility, and Opportunity Zone requirements with their own qualified advisors.

Carson LeeJones 615-212-5524

[email protected]

Why Kingsport — Steady Growth Without the Boom-Bust Risk

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

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.

Construction Cost & Grant (DIG) Program

The same construction-cost advantage shown for multifamily holds true for retail and remodel work. Kingsport hard costs run meaningfully below peer markets across the board, and when paired with incentives — Opportunity Zone tax advantages, façade improvement grants of up to $50,000, and the City's Redevelopment Grant and Downtown Loan programs — projects achieve a superior basisand stronger risk-adjusted returns.

Whether the buyer is repositioning the existing asset as a Hotel, Loft, F&B, or retail space or doing a full top-to-bottom remodel, the cost to build is substantially more affordable than what the same projectwould carry in Chattanooga, Knoxville, Nashville, or Asheville.

$50,000 Facade Grant - Potential Renovation with NEW Windows

Façade Program Application

The purpose of the Facade Grant Program is to encourage the revitalization of building facades and to improve the aesthetics of the city’s Central Business District with grant assistance through the Kingsport EconomicDevelopment Board (KEDB), for the City of Kingsport, Tennessee.

Redevelopment Program Application

The purpose of the Redevelopment Grant Program is to encourage the revitalization of building sites with special emphasis on improvement of the aesthetics in the city’s Central Business District with grant assistance through the Kingsport Economic Development Board (KEDB), for the City of Kingsport, Tennessee. Special emphasis is given to projects pertaining to the Central Business District, however; the grant is applicable to all parts of the city.

Visit the city website to learn more or click here: https://www.kingsporttn.gov/ecd/incentives

Premier Downtown Location — Broad & Center

Located at the intersection of Broad Street and Center Street, the property occupies one of the highest-profile commercial corners in Downtown Kingsport. The surrounding district continues to benefit from ongoing public and private investment while attracting new restaurants, breweries, retail concepts, galleries, entertainment venues, and residential redevelopment.

The building sits immediately adjacent to one of Downtown Kingsport’s newest public parking garages — an amenity rarely available to historic downtown redevelopment opportunities. More than 1,800 public parking spaces are available throughout Downtown Kingsport.

The block is surrounded by regional and national operators including Starbucks, Food City, Beef ‘O’Brady’s, Truist, First Horizon Bank, Regions Bank, HomeTrust Bank, and CrossFit, with City Hall, restaurants, retail, and downtown employers all within an easy walk.

Offered at $1,570,000 (approximately $63 per square foot), the property occupies a highly visiblecorner at Broad Street and Center Street — benefiting from outstanding vehicular exposure, walkability, and a location immediately adjacent to a newly constructed public parking garage,solving the hurdle that stalls most downtown hotel projects.

The first floor has already undergone significant redevelopment and is leased to a diverse mix of destination-oriented tenants, while the expansive ±8,000+ SF second floor has been stripped to itsshell and prepared for redevelopment — substantially reducing future construction costs.

Kingsport’s B-2 Central Business District zoning provides one of the city’s broadest commercial use classifications, allowing future owners considerable flexibility as market demand evolves.

Existing Income — Active, Destination-Oriented First Floor

The first floor provides immediate cash flow through an established mix of experiential and destination-oriented tenants, including:

• Kingsport GellyBall — experiential entertainment concept drawing families and groups downtown
• The Bagel Exchange — daily food-and-beverage traffic and morning foot traffic anchor
• Impressions Fine Art Gallery — destination retail and cultural draw - month to month lease

These businesses create consistent activity throughout the day while activating the street frontage and enhancingthe property’s long-term redevelopment appeal. An investor can continue collecting rental income while planning a phased redevelopment of the upper level. Rent roll and financials are available upon execution of a confidentiality agreement (NDA) — contact the listing agent.

Second Floor Value-Add — Stripped & Redevelopment-Ready

The approximately 8,000+ square-foot second floor has already been stripped to its structural shell, significantly reducing demolition costs and accelerating redevelopment timelines. Potential strategies include boutique hotel guest rooms, luxury residential lofts, executive apartments, creative office suites, event space, and mixed hospitalityconcepts. The existing historic structure offers generous ceiling heights and architectural character that are increasingly difficult to replicate through new construction.

Notably, the stripped second floor pairs naturally with an Opportunity Zone strategy: OZ rules generally require substantial improvement to the property after purchase, and this building already has its improvement runway defined — the second floor is the project.

Historic Asset with Limited Competition

Historic downtown buildings represent an inherently limited asset class. Unlike suburban commercial developments,additional historic inventory cannot be created. As Downtown Kingsport continues attracting new residents,businesses, restaurants, and visitors, existing historic buildings become increasingly valuable because of their authenticity, walkability, and redevelopment flexibility.

At approximately $63 per square foot, the property provides investors the opportunity to acquire a premier downtown corner at a basis significantly below replacement cost.

Downtown Residential Momentum

Demand for quality downtown residential product continues strengthening throughout Kingsport. Over 1,200 residential permits have been issued in the last five years, resulting in approximately 2,500 new residential units downtown and nearby — a growing built-in customer and workforce base for street-level retail, hospitality, and services.

One recent example is the historic Sterchi Suites condominium development at 217 Broad Street, where a residence sold in July 2026 for approximately $265 per square foot, demonstrating buyer demand for renovated historic downtown living. While every project differs and future values cannot be guaranteed, the transaction reflects continued investor and buyer interest in adaptive reuse projects throughout Downtown.