215 & 223 Commerce Street

215 & 223 Commerce Street is one of Downtown Kingsport’s most distinctive commercial assets — approximately 17,750 square feet of flexible space contained within a single building yet operating under two separate street addresses. That multi-address configuration is genuinely rare for the market: it gives an owner the footprint of a larger facility while preserving the option to operate, brand, or sub-lease as multiple distinct storefronts and suites under one roof. The building is 100% occupied across four tenants — a tavern with a full commercial kitchen, a craft distillery, a high-end fitness operator, a destination retail concept, and a supplemental storefront. Two leases are intentionally short-term, letting a buyer underwrite a stabilized, in-place rent roll from day one and step into those spaces as the leases roll — capturing income today while retaining full control of the building going forward. Inside the building, the prior food-and-beverage build-out is the standout asset. Anchor tenant Ole Crow Tavern has invested approximately $500,000 in a fully upgraded commercial kitchen and bar build-out — hood system, line equipment, finishes, and front-of-house infrastructure all in place. That level of turnkey F&B infrastructure would be cost-prohibitive for a buyer to replicate from scratch and gives the next operator (or the next tenant) an immediate, move-in-ready restaurant platform. On the 223 Commerce side, the gym space features industrial-size overhead doors — an unusual and valuable feature in a downtown building. Those doors make the space readily convertible to a wide range of higher-clearance, drive-in, or load-in/load-out uses: a supply company, contractor showroom with stock area, plumbing/HVAC/electrical distributor, flooring or window/door showroom, light fabrication, or commercial service operator who needs to roll trucks or material directly into the building. Few Downtown Kingsport spaces can accommodate that kind of operation The property sits inside the City of Kingsport’s Central Business District — which is simultaneously a TIF District, a PILOT District, a federally designated Qualified Opportunity Zone, and part of the Tennessee Main Street program — placing it inside the boundary eligible for the City’s Façade Grant Program, Redevelopment Grant Program, and Downtown Kingsport Loan Program. Qualified Opportunity Zone designation additionally allows qualifying investors to defer capital gains, reduce the tax on those gains, and grow their Opportunity Zone investment capital-gains-tax-free, with no depreciation recapture, after a 10-year hold.