By Lewis Loflin
The Highlands, a 43-acre retail shopping center in Bristol, Virginia, was completed in 2007 and partially listed for sale in 2008 for $25.2 million. Located near Exit 7 of Interstate 81 in Washington County, Virginia, the project drew scrutiny for a $10 million public incentive package, annexation disputes with Bristol, Virginia, and the displacement of low-income residents from its original planned site. Critics questioned the economic benefits, particularly the claim of 2,000 new jobs, noting a lack of transparency regarding wage levels. The development features retailers such as Best Buy, T.J. Maxx, Bed Bath & Beyond, Ross, Books-A-Million, and PetSmart, with Target as a shadow anchor (not included in the sale).
Developed by a joint venture between Newton Oldacre McDonald and local entrepreneur Mack Trammel, the project operated within legal bounds, but public criticism focused on Washington County officials’ decision-making and oversight.
A 2008 LoopNet listing detailed the Highlands as offering 165,345 square feet of gross leasable area (GLA) on a 29.8-acre lot, with 100% occupancy. Priced at $25.2 million, it had a price per square foot of $152.48, a 7% capitalization rate, and a net operating income of $1,764,770. Long-term leases with national tenants like Best Buy and PetSmart required minimal management. Its location near Interstate 81, with 50,000 average daily traffic at Exit 7, bolstered its appeal.
The center is shadow-anchored by Target and situated in a retail corridor with The Home Depot, Walmart Supercenter, Sam’s Club, Lowe’s, and Office Depot. The listing highlighted potential for real estate appreciation and scheduled income increases.
| Property Detail | Value |
|---|---|
| Price | $25,211,000 |
| Price per SF | $152.48 |
| GLA | 165,345 SF |
| Lot Size | 29.8 Acres |
| Net Operating Income | $1,764,770 |
| Cap Rate | 7% |
| Year Built | 2007 |
Located five miles northeast of central Bristol in Washington County, Virginia, the Highlands benefits from its position along Interstate 81. The Bristol trade area serves over 560,000 people across 12 counties, drawing shoppers from Northeast Tennessee due to Virginia’s 5% sales tax rate compared to Tennessee’s 9.5%. Nearby businesses include Dollar Tree, IHOP, Microtel, Food City, CineMark, and dining options like Ruby Tuesday and Outback Steakhouse.
The Highlands’ proximity to Exit 7 and its diverse retail mix make it a key economic hub in Washington County, Virginia.
Washington County broke ground on the Highlands on September 18, 2006, with initial tenants including T.J. Maxx, Books-A-Million, and PetSmart, opening in summer 2007. The 325,000-square-foot center aimed to serve Southwest Virginia and Northeast Tennessee. Challenges included a $2 million annexation lawsuit between Bristol, Virginia, and Washington County, and criticism over the displacement of low-income residents.
The $10 million incentive package drew significant debate, with critics arguing it was disproportionate to the economic benefits delivered to Washington County taxpayers.
Acknowledgment: I’d like to thank Grok, an AI by xAI, for helping me draft and refine this article. The final edits and perspective are my own.
