FORT HENRY MALL

Kingsport, TN

Newmark has been exclusively retained to market to qualified investors the opportunity to acquire Fort Henry Mall (the “Mall” or “Property”), an enclosed regional mall located in Kingsport, TN. The Property consists of approximately 435,317 square feet of gross leasable area (347,694 Owned), situated on 52.6 acres in Northeast Tennessee. The Mall offers tremendous upside with an option to maintain in-place cash flow and create value through vacancy lease-up or pursue a greater redevelopment plan.

The Mall is currently 66% occupied, anchored by Belk (101,547 SF), Dunham’s (48,387 SF) and Rural King (87,623 SF Unowned, Opening 2025), and is situated within a major retail corridor in close proximity to a number of national retailers, restaurants, and services.

Fort Henry Mall is strategically located at one of the busiest traffic intersections in the region, with traffic counts in excess of 20,000 VPD, and is in close proximity to the area’s largest employers and business hubs. The Property serves a trade area population north of 437,000 residents within a 25-mile radius. Fort Henry Mall is located just two miles from area’s largest employer, Eastman Chemical Company. Eastman employs over 7,000 people at their Kingsport headquarters, and given its proximity, the Mall serves as a primary destination for employees.

INVESTMENT HIGHLIGHTS

NUMEROUS REDEVELOPMENT/REPOSITIONING OPPORTUNITIES:

• The Mall is primed for either light repositioning or large-scale redevelopment, with 435,317 square feet of gross leasable area situated on approximately 39.9 acres of developed land.
• Opportunity exists to backfill in-line current vacancies. There is an opportunity to introduce non-retail uses including office, entertainment, medical and government.
• The City of Kingsport and the property zoning code provides development optionality – multifamily, office and hotel.

$8M INVESTMENT FOR NCG THEATER IMAX EXPANSION:

Through a Payment in Lieu of Taxes Agreement “PILOT” with the City, ownership will expand and upgrade NCG Theaters to develop an IMAX theater. This project will include the construction of a 7,000 square feet IMAX theater, upgrades to existing theaters including luxury seating and new concessions including a bar area. Once completed, this will be the only IMAX theater within a 100-mile radius.

TRUE VALUE-ADD OPPORTUNITY:

The Mall is 65.9% occupied providing immediate leasing upside.

FLEXIBLE ZONING:

The site is zoned Planned Business District (B-4P), which allows for a diverse range of commercial uses including retail, restaurant, hospitality, entertainment, and office. The Property’s attractive and flexible zoning provides optionality by allowing dense commercial and mixed-use development.

NEW RURAL KING ANCHOR OPENING 2025:

Construction has begun on the former JCPenney box and is expected to be completed in Spring 2025. Rural King is a farm supply store with over 135 locations across the U.S. The Rural King’s Sales Volume  is projected to be about $20M a year.

PROXIMITY TO EASTMAN CHEMICAL COMPANY PROVIDES ECONOMIC STABILITY:

Fort Henry Mall is located two miles from Eastman Chemical Company’s headquarters and largest manufacturing site. Eastman Chemical, a 100+ year old global specialty materials company, is the area’s largest employer and the economic cornerstone of Kingsport and the surrounding trade area. Valued at over $12B, Eastman employs over 7,000 people at their 1,500-acre campus in Kingsport, which houses multiple manufacturing facilities, research and development (R&D) centers, and administrative buildings. Given the proximity to the Eastman Chemical site, the Property serves as a primary retail  destination for Eastman Chemical employees and visitors. The presence of a major employer like Eastman Chemical Company contributes to the overall economic health of the region. This stability can encourage further investment and development in the area, potentially leading to the expansion of the mall or the addition of new businesses.

REGIONAL MALL TEAM CONTACTS:

TENNESSEE LICENSEE: