Investment Opportunity

Office for Sale
Sale Pending/Contingent
Catylist Listing ID: 30096732
Property Subtypes: Medical, Office Building, Other
Status: Pending/Contingent
Condo? Yes
Building Size (RSF): 2,129 SF
Gross Building Area: 14,000 SF
Gross Land Area: 0.79 Acres
Sale Price: $480,000
Property Use Type: Net Leased Investment (NNN), Investment
Building Name: Summit Suites
Class of Space: Class A
Sale Terms: Cash to Seller
Cap Rate: 7.92%
Average Occupancy Rate: 100
Last Updated: 9/5/2017

Overview / Comments

Class A professional office suite offered for sale as NNN investments. The Summit Office suites are located in the middle of the highest retail area on the north side of Chattanooga with a traffic count of 48,779. Tenants enjoy signage on the building as well as monumental signage. Summit Suites is located close to the Target shopping center.

Johnson Audiology leases Suite 203 which has 2,129 square feet and is set up as a medical office. The current lease is thru 2026, with 5-year options & step up rent in each option term.There are personal guarantees on this lease. The Hixson office was opened in December 2015 which is their fourth office to open.

This property offers a 7.92% cap rate.

Seller also owns suite 204, and would consider selling them as a package.

Current Tenants

Tenant Business Name Johnson Audiology
Industry Type Health Care and Social Assistance
Is Renting? Yes
Suite Number 203
SF of Space Occupied 2,129 SF
Current Rent $38,003 PSF (Annual)
Lease Expiration 12/2021
Escalations Suite 203: Base rent is $3,166.89/month years 1-5; then $3,484.46/month years 6-10; then $3,832.20/month years 11-15; then $4,215.42/month years 16-20 
Options two 5 year renewal options
Tenant Notes Johnson Audiology is an established company with Hixson being their 4th office to open. Their history is to remain in their location for long term once they open an office. True NNN: Annual: Taxes: $7,024.33; CAM $2,235,45; Insurance: $567.54. NOI to Landlord is $38,003.

Additional Details

Nearest MSA: Chattanooga
County: Hamilton
Taxing Authority: Hamilton County, TN
Tax ID/APN: 099E C 035.01C203
Is Condo?: Yes
Zoning: R 4
Property Located Between: Winding Lane and Sutton
Property Visibility: Excellent
Highway Access: Hwy 153
Airports: Chattanooga Metropolitan Airport
Site Description: 2 Story Professional office building
Area Description: Main commercial corridor in Hixson, close to Target Super Center Home Depot, Walgreens, Best Buy, restaurants, doctor offices, etc.
Total Number of Buildings: 1
Number of Stories: 2
Year Built: 2007
Construction/Siding: Brick
Parking Type: Surface
Parking Description: Surface
Heat Type: Electricity
Heat Source: Central
Air Conditioning: Package Unit
Zoning Description: R4
Lot Frontage: 210'
Lot Depth: 180'
Water Service: Municipal
Sewer Type: Municipal
Land Ownership: Owner
Legal Description: Unit 203 Summit Suites Out Of 099E- C-035.01 For 2016 and

Demographic Statistics

Proximity: 1 mile 3 miles 5 miles
Total Population: 5,844 38,682 89,540
Median Age: 40.86 41.54 40.46
Households: 2,541 16,896 38,194

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