Historic Boutique Hotel & Loft Redevelopment — Adjacent 400-Space Parking Garage
FOR SALE | 244 - 252 Broad St., Kingsport, TN 37660 | Sale: $1,570,000
Historic Boutique Hotel & Loft Redevelopment — Adjacent 400-Space Parking Garage
Where Fortune 500 business travel meets 12M+ Smoky Mountains travelers. Positioned on one of Downtown Kingsport’s most prominent intersections, 244-252 Broad Street presents a rare 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.
- Address
- 244 - 252 Broad St., Kingsport, TN 37660 — the corner of Broad & Center
- Size
- ±25,043 SF historic mixed-use building
- Price
- $1,570,000 — approximately $63 per square foot
- Zoning
- B-2 Central Business District (CBD)
- Incentives
- Qualified Opportunity Zone, TIF, PILOT, KEDB façade & redevelopment grants, Tennessee Main Street programs
Boutique Hotel Opportunity — The Rate Data Supports the Concept
Downtown Kingsport has no boutique hotel. Not one. The city’s lodging supply is concentrated in highway-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 race weekends and Kingsport’s Fun Fest — 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-service stock — it would establish its own tier. In comparable secondary markets, boutique conversions in historic downtown 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 for exactly that guest are already in place.
For hotel projects requiring 50,000 SF, this property can be combined with 255 Broad Street.
Existing Income — Active, Destination-Oriented First Floor
The first floor has already undergone significant redevelopment and provides immediate cash flow through an established mix of experiential and destination-oriented tenants:
- 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. 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 hospitality concepts. The existing historic structure offers generous ceiling heights and architectural character that are increasingly difficult to replicate through new construction.
For Opportunity Zone investors, the stripped second floor is a rare advantage: 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. 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.
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 building sits immediately adjacent to one of Downtown Kingsport’s newest public parking garages — an amenity rarely available to historic downtown redevelopment opportunities — with more than 1,800 public parking spaces 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. 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.
Historic Asset with Limited Competition
Historic downtown buildings represent an inherently limited asset class. Unlike suburban commercial developments, additional historic inventory cannot be created. 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.
Why Kingsport — Steady Growth Without the Boom-Bust Risk
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.
Kingsport buying power per dollar of retail rent is 10% to 24% higher than Knoxville, Nashville, and Asheville, NC. 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.
Demand for quality downtown residential product continues strengthening: over 1,200 residential permits have been issued in the last five years, resulting in approximately 2,500 new residential units downtown and nearby. 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.
Construction Cost & Grant (DIG) Program
Kingsport hard costs run meaningfully below peer markets — approximately $175 per square foot for multifamily hard costs versus $200 in Chattanooga, $210 in Knoxville, $245 in Nashville, and $235 in Asheville, NC. Paired with incentives — Opportunity Zone tax advantages, façade improvement grants, and the City’s Redevelopment Grant and Downtown Loan programs through the Kingsport Economic Development Board (KEDB) — projects achieve a superior basis and stronger risk-adjusted returns. Learn more at kingsporttn.gov/ecd/incentives.
$294M Capital Improvement Plan (2025–2029)
Kingsport is in the middle of significant infrastructure and beautification efforts aimed at revitalizing downtown: the Main Street Rebuild Project (new water, sewer, and stormwater lines, utilities moved underground, stamped brick crosswalks, landscaping, and bulb-outs from Market Street to Sullivan Street), the Riverwalk Park expansion backed by a $7.8 million BlueCross BlueShield of Tennessee Foundation grant along the 11-mile Greenbelt, Bays Mountain Park renovations, street resurfacing, and a comprehensive Downtown Master Plan.
Demographics Snapshot
| Demographics (2023 ACS) | 5 Miles | 10 Miles | 20 Miles |
|---|---|---|---|
| Total Population | 68,168 | 115,655 | 287,747 |
| Total Households | 29,874 | 49,948 | 121,107 |
| Average Household Income | $75,345 | $81,794 | $77,733 |
| Average House Value | $205,833 | $244,585 | $248,060 |
Downtown Kingsport
Parking & Access
Downtown Kingsport carries 1,800+ free public parking spaces, including a 364-space parking garage roughly a 3-minute walk (~250 yards) from the property.
Contact
Carson Lee Jones
615-212-5524
carson.jones@expcommercial.com
Passive Investments | eXp Commercial
Serious inquiries only — tours available upon request. Please contact the listing agent for showing appointments. Rent roll and financials available upon execution of an NDA.
Keywords: boutique hotel for sale Kingsport TN, historic building redevelopment Tennessee, downtown Kingsport commercial real estate, Broad Street Kingsport, Opportunity Zone hotel development, urban loft conversion Kingsport, mixed-use building for sale Tri-Cities TN, hotel development site Tennessee, adaptive reuse investment, historic downtown property below replacement cost
Disclaimer: All information contained herein has been obtained from sources deemed reliable; however, no representation or warranty is made as to its accuracy. Exterior images labeled as conceptual renderings depict potential renovations and do not represent current conditions. Hotel rate data reflects published pricing from major hotel booking platforms and market research sources as of mid-2026 and is provided for illustrative purposes only; figures for the Kingsport and Franklin/Brentwood markets are not STR- or CoStar-audited market ADR. Prospective purchasers should conduct their own hospitality feasibility analysis and verify all square footage, zoning compliance, tenant occupancy, market data, incentive eligibility, and Opportunity Zone requirements with the appropriate authorities and their own qualified advisors. Opportunity Zone provisions carry specific deadlines and conditions and are subject to change by legislation or regulation.
Questions Buyers Ask About 244-252 Broad Street
The questions hotel developers and investors ask most often about this Broad & Center corner. Verify every figure during due diligence.
How is the $1,570,000 price justified?
The price is about $63 per square foot for ±25,043 SF on one of downtown's most visible corners, with first-floor income in place and a second floor already stripped to its shell. That basis is far below the cost to build, and Kingsport's top branded hotels already publish nightly rates of $130–$137.
What is the current occupancy?
The first floor has three income-producing tenants: Kingsport GellyBall, The Bagel Exchange, and Impressions Fine Art Gallery (month-to-month). The ±8,000+ SF second floor is vacant and stripped, ready for redevelopment.
Why is this a strong boutique hotel site?
Downtown Kingsport has no boutique hotel. Rates climb past $210 a night during Bristol Motor Speedway race weekends and Fun Fest. The building also sits right next to a 400-space municipal parking garage, which removes the parking problem that stalls most downtown hotel projects. Boutique conversions in similar markets often price $30–$60 above the local branded average.
What about parking?
The building is immediately adjacent to a 400-space municipal parking garage, one of downtown's newest. Downtown Kingsport has more than 1,800 public spaces overall.
How is it zoned?
It is zoned B-2 Central Business District, which permits hotels and boutique hotels, upper-floor residential lofts, restaurants, bars, event space and retail, covering every redevelopment path for this building.
Can it be combined with a neighboring building?
Yes. For hotel projects that need about 50,000 SF, the property can be combined with 255 Broad Street, the 1927 bank building with a rooftop deck and event center.
Does it work for a 1031 exchange?
Yes. It has in-place income and a defined redevelopment path. Section 1031 only requires that you hold the replacement property for investment or for use in your business, identify it within 45 days of selling, and close within 180 days through a qualified intermediary. Improvement dollars spent after the exchange closes don't count toward your replacement value, so plan the hotel or loft build-out with your intermediary.
How do Opportunity Zone benefits apply here?
The building is in a federally designated Qualified Opportunity Zone. The OZ rules generally require substantially improving the building after purchase, and the stripped second floor already defines that project. Benefits require investing eligible gains through a Qualified Opportunity Fund, and the rules shift with the 2027 zone designations, so confirm the timing with your CPA.
What demand drivers support hotel and loft use?
Fortune 500 business travel tied to Eastman Chemical meets 12M+ Smoky Mountains travelers. Locally, there are about 2,500 new residential units, a downtown loft comp at about $265/SF, and Kingsport's $294M capital improvement plan.
How do I get the rent roll and financials?
The rent roll and financials are released after you sign a confidentiality agreement (NDA). Contact Carson Jones at 615-212-5524 or carson.jones@expcommercial.com to start, and to schedule a tour.
Selling or buying commercial property? Let's talk.
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Carson Jones
Carson Jones is the host of Carson's Corner: Commercial Real Estate, author of The Red Flag Playbook, a licensed commercial real estate advisor and business broker, and the founder of Passive Investments. With 18 years of experience as an entrepreneur and 12 years specializing in passive investing, Carson works with high-net-worth individuals, family offices, business owners, and sophisticated investors as a broker and principal.
Carson holds a BBA in Finance from Baylor University and his Tennessee commercial real estate license (#382989). He actively pursues acquisition and equity opportunities across the United States and abroad through a worldwide network of qualified buyers, family offices, institutional investors, and top-tier developers.