Medical Office Suite Investment | Simple and Easy | 7.75% Cap Rate

Office for Sale
Sale Pending
Catylist Listing ID: 30562958
Property Subtypes: Business Park, Executive Suites, Office Building
Status: Pending
Condo? Yes
Building Size (RSF): 2,250 SF
Gross Building Area: 13,200 SF
Gross Land Area: 0.41 Acres
Sale Price: $522,580
Ceiling: 9 ft.
Property Use Type: Investment, Vacant/Owner-User
Building Name: Hamilton Office Park
Class of Space: Class B
Sale Terms: Cash to Seller
Cap Rate: 7.75%
Average Occupancy Rate: 100
Last Updated: 11/13/2020

Overview / Comments

Brand new 5-year triple net lease just executed with the lease starting May 1, 2020. The location will be the second medical office for a regional concept headquartered out of Florida. The lease rate is $18/sf with $5.55/sf for the NNN expenses. Year one NOI-Net Operating Income is $40,500 and increases 3% per year for each year.

The property is located in the upscale condominium property called Hamilton Office Park. Suite 116 is a corner suite with windows in half the offices. It has access to Shallowford Rd and Ogletree Avenue. There is a large parking lot that provides parking directly in front of the suite. The is a First Bank located across the parking lot. Hamilton Office Park has 3 buildings within the owners association. There is ample parking throughout the complex of 3 buildings.

Across the street is the YMCA facility and very near is Home Depot and the whole Hamilton Place Mall sub-market.

Suite 116 tenant is Riverwalk Recovery Center, LLC. The suite contains 8 offices, 2 restrooms, large kitchen and seating area and a lobby that seats about 20. Riverwalk Recovery Center, LLC is associated with the Harmony Recovery Group business out of West Palm Beach, FL.

This suite most recently occupied by Agape Properties, LLC.

This property was slightly damaged by the tornadoes of March 13, 2020. There was minor roof damage and some guttering damage. The Owners Association is working with the property insurance companies and do not expect serious expense outlay by the owners or tenants. The largest damage to the property was done to the brick marque sign along Shallowford Road.

Attached is a lease abstract of the lease.

Additional Details

Nearest MSA: Chattanooga
County: Hamilton
Taxing Authority: Hamilton County/ Chattanooga City
Tax ID/APN: 149J A 001.01C005
Is Condo?: Yes
Zoning: R4
Property Located Between: Shallowford Rd and Ogletree Ave
Property Visibility: Good
Highway Access: Located just one block from Gunbarrel Road and two blocks from Exit #5 off I-75,
Airports: Chattanooga Metropolitan
Site Description: The site is level and at street grade. Property is accessed via Shallowford Rd or Ogletree Avenue. Parking is striped and in front of the building.
Area Description: The whole property contains 3 buildings which are individually owned via a condominium agreement.
Total Number of Buildings: 3
Number of Stories: 1
Typical SF / Floor: 2,250 SF
Year Built: 2006
Year Renovated: 2020
Roof Type: Arched
Construction/Siding: Brick
Exterior Description: Attractive red brick.
Parking Type: Surface
Parking Description: Parking Lot is level and striped. Parking is in front of the suites.
Total Parking Spaces: 12
Sprinklers: None
Heat Type: Natural Gas
Heat Source: Central
Air Conditioning: Engineered System
Interior Description: Very nice and clean. Efficient layout.
Zoning Description: R4
Water Service: Municipal
Sewer Type: Municipal

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Demographic Statistics

Proximity: 1 mile 3 miles 5 miles
Total Population: 7,637 47,037 97,961
Median Age: 39.57 40.08 39.61
Households: 3,522 19,759 39,729

Contact

Photograph of Listing Agent

Robert Fisher

KW Commercial Greater Chattanooga REALTORS® Member
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