A tavern in point (3)
I believe the answer is:
inn
'a tavern' is the definition.
(I've seen this before)
'in point' is the wordplay.
'point' becomes 'n' (N is an example).
'in'+'n'='INN'
(Other definitions for inn that I've seen before include "Gray's, Lincoln's" , "watering hole" , "Roadhouse" , "Local" , "eg the Tabard" .)