Boutique Hotel Loft Redevelopment 244-252 Broad St 25,043 SF 100% Leased Retail Building Kingsport, TN 37660 $2,208,990 CAD ($88.21 CAD/SF)

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.
For hotel projects requiring 50,000 SF, this property can be combined with 255 Broad Street.
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.
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.
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,