Historic Boutique Hotel & Loft Redevelopment

Investment Overview

Historic Boutique Hotel & Loft Redevelopment 400-Space Municipal Parking Garage 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 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, 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-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. 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 the downtown 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, creative office, 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 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. Among Downtown Kingsport’s historic commercial inventory, few buildings appear better positioned for boutique hotel redevelopment. Several characteristics distinguish this opportunity: This highly visible downtown 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 walkable restaurant and entertainment district. $4000 Rental Income During Buildout Need up to 50,000 SF? Combine with 255 Broad Street across the street: Link to 255 Broad 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/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. 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. 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 the downtown 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, creative office, 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 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. Among Downtown Kingsport’s historic commercial inventory, few buildings appear better positioned for boutique hotel redevelopment. Several characteristics distinguish this opportunity: This highly visible downtown 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 walkable restaurant and entertainment district. 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/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. 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. 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 and the City's Redevelopment Grant and Downtown Loan programs — projects achieve a superior basis and 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 project would carry in Chattanooga, Knoxville, Nashville, or Asheville 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 Economic Development 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 visible corner 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 its shell 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 enhancing the 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 hospitality concepts. 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. eXp Commercial Listing Agent: Carson Jones 615-212-5524 Carson.Jones@eXpCommercial.com Nearby 364 - Space Parking Garage, 3 Min. Walk (~100 Yards Away) 1,800+ public parking spaces in Downtown Kingsport $294M Capital Improvement Plan 2025–2029 Kingsport, Tennessee Infrastructure & Beautification City Scapes / "Rebuild" Initiatives Kingsport, Tennessee, is currently undergoing significant infrastructure and beautification efforts aimed at revitalizing its downtown and enhancing public spaces. These projects, often referred to as city scapes or "rebuild" initiatives, focus on modernizing infrastructure while improving aesthetics and quality of life. 1. Main Street Rebuild Project Scope: Revitalizing the downtown area from Market Street to Sullivan Street. Status: Ongoing for roughly two years. (Picture Above). Replace aging infrastructure, stabilize the road base, enhance the aesthetic appeal of the downtown corridor. Key improvements include new water, sewer, and stormwater lines, utilities moved underground, stamped brick crosswalks, landscaping, and bulb-outs. 2. Downtown Public Art & Aesthetic Enhancements • Vinyl Wraps: In June 2024, new vinyl wraps were installed on utility boxes featuring local history (funded by a Tennessee Arts Commission grant). • Downtown Master Plan: Comprehensive plan developed by TSW Design to guide the creation of a vibrant downtown for future generations. 3. Other Major City Upgrades • Riverwalk Park Expansion: $7.8 million grant from the BlueCross BlueShield of Tennessee Foundation to add new amenities along the 11-mile Greenbelt. • Bays Mountain Park: Renovations to update the nature center, expand the gift shop, and restore the observation tower. • Street Resurfacing: $2.5 million project covering streets including Moreland Drive and Fall Creek Road (expected completion in 2025). • Scott Adams Memorial Skatepark: New, improved skatepark planned for Brickyard Park. 4. City Visioning & Future Development • "Only Kingsport" Campaign: Continues to promote the city as the “City of Originals,” highlighting unique attractions such as the hand-carved carousel and outdoor adventures. • Residential Growth: Over 1,200 residential permits issued in the last five years, resulting in approximately 2,500 new residential units. • Industrial & Commercial Growth: Includes redevelopment of the Dobyns-Taylor Warehouse and expansion of the IMAX theater at Fort Henry Mall. For the most up-to-date information, visit the City of Kingsport’s official engineering project page or the dedicated Main Street Rebuild Project website. Brickyard Village — a 50-acre master-planned community currently underway, within walking distance of Downtown. Adaptive reuse projects, on average, come in 16% less expensive and 18% faster than ground-up construction — and often deliver 10–15% higher ROI (Deloitte Report). Deals actually pencil. When you buy a stabilized asset, ask yourself: who's capturing the upside—you or the developer cashing out? Acquiring vacant or underutilized properties and executing a heavy value-add or adaptive reuse strategy lets you create the value instead of paying for someone else's margin. 1.2 Million Population Within a 60-Mile Radius Great Smoky Mountains National Park = 12.5mm annual visitors Entire Pigeon Forge area sees 21mm+ annual visitors

Investment Highlights

• ​Highly visible downtown corner at Broad Street and Center Street with outstanding vehicular exposure and walkability
• ​Immediate access to adjacent structured public parking garage - 1,800+ public parking spaces downtown
• ​Passenger elevator
• ​Expansive ±8,000+ SF second floor stripped to shell and ready for redevelopment
• ​Located within walkable restaurant and entertainment district
• ​First floor leased to diverse mix of destination-oriented tenants providing immediate cash flow
• ​Historic structure with generous ceiling heights and architectural character
• ​B-2 Central Business District zoning provides broad commercial use flexibility
• ​Located in Qualified Opportunity Zone
• ​Eligible for façade improvement grant
• ​Eligible for City Redevelopment Grant and Downtown Loan programs
• ​Adjacent to newly constructed 400-space municipal parking garage
• ​Can be combined with 255 Broad Street for hotel projects requiring 50,000 SF
• ​Offered at approximately $63 per square foot - significantly below replacement cost
• ​Over 1,200 residential permits issued in last five years resulting in approximately 2,500 new residential units downtown
• ​Downtown Kingsport has no boutique hotel
• ​Kingsport construction costs substantially lower than Chattanooga, Knoxville, Nashville, or Asheville
• ​Office vacancy 4.0%, Retail vacancy 1.5%, Multifamily vacancy 5.6% - all outperforming national averages
• ​Kingsport buying power per dollar of retail rent is 10% to 24% higher than Knoxville, Nashville, and Asheville