Medical Office Investment | 7.6 % CAP Rate

Office for Sale
Catylist Listing ID: 30772353
Property Subtypes: Medical, Office Building
Building Size (RSF): 12,250 SF
Gross Land Area: 0.59 Acres
Sale Price: $1,550,000
Unit Price: $126.53 PSF
Ceiling: 9 ft.
Property Use Type: Investment
Building Name: Lee Center
Class of Space: Class B
Usable Size (USF): 12,250 SF
Sale Terms: Cash to Seller
Cap Rate: 7.6%
Average Occupancy Rate: 100
Last Updated: 11/15/2021

Overview / Comments

For Sale | Medical Office Investment Property | 7.6% CAP | 100% Occupied

Great Opportunity to Own a Fully Leased Medical Office Investment Property. 7030 Lee Highway is a +12,250 sf office building located in the busy area on Lee Hwy near Shallowford Rd and Exit 5 on I-75. The entire building is currently fully leased with solid medical practitioners. Seller has owned the building for about 20 years.

The current Net Operating Income (NOI) is at $117,558.

The 3 medical office tenants are Spero Health of Tennessee, LP (https://sperohealth.com/our-story), Michael Reardon, DMD, P.C ( https://sceniccitydentistry.com/) and Trauma & Addiction Recovery Center, LLC
(https://www.tarcrecovery.com/). Spero is 2 years into a 5-year initial term. Michael Reardon just renewed for a third 5-year term and Trauma & Addiction Recovery Center just started their 5-year term in July of this year. So, you have a very solid base of tenants and with the shortest lease period having 3 years left on the term.

This area of Chattanooga continues to grow and improve! Lee Highway has many new, high-end buildings and businesses surrounded by bustling residential neighborhoods and the largest Mall and retail area in Hamilton County at Exit 5 off of I-75.

Some nearby commercial properties include:
- Group of hotels nearby: Marriott, Hilton, Wyndham, Travelodge and more
- New HomeServe Contact Center (new 45,000 SF office bldg.)
- Bridgeway Apartments Homes
- New Keller Williams Market Center Offices
- New Surf's Up Car Wash
- New Parkridge North Hospital & Emergency Room

This property has great visibility and nearly 15,000 vehicles per day pass this site with traffic increasing.

All three leases are modified gross type lease where the tenants pay for all utilities and minor repairs with the Landlord paying for exterior upkeep, major HVAC repairs and property taxes.

Recent Renovations to the property include:
1. The exterior of the building was painted in 2015 by Wilson Painting for $11,179.
2. A new PPO roof was added by Complete Roofing Systems, Inc. in 2013 for $28,500.
3. Repaired/replaced HVAC ductwork and dampers in 2017 by Waconda, Inc for $4,345.

This property is very suited for a first time investors!

The following documents are available to qualified buyers:
1. Lease Abstracts
2. Profit and Loss Statements: T-10 and 2020, 2019 & 2018 statements
3. Leases provided once under contract

Because all three tenants have medical related practices it will require showings to be scheduled around their practices with minimal interruptions occuring to their offices.

Additional Details

Nearest MSA: Chattanooga
County: Hamilton
Taxing Authority: Hamilton County
Tax ID/APN: 148D F 002
Zoning: C2 - COMMERCIAL
Property Located Between: Shallowford Road & Lee Highway
Property Visibility: Excellent
Highway Access: Quick access to I-75 via Exit 5 off of Shallowford Road and via Exit 7 at Bonny Oaks Road and I-75.
Airports: Chattanooga Metropolitan Airport
Site Description: The site is level and at street grade. There is a front drive to Lee Hwy and a rear drive that has access to Center Street.
Area Description: Busy retail and office area with high traffic counts on Lee Hwy and nearby Shallowford Rd. Traffic count of 14,490/day. Close to airport, Interstate I-75, Hamilton Place Mall and many restaurants.
Total Number of Buildings: 1
Number of Stories: 2
Typical SF / Floor: 6,125 SF
Year Built: 1989
Roof Type: Flat
Construction/Siding: Block
Exterior Description: 2-Story attractive building facing Lee Hwy. Great visibility for signage. The rear of the building has an attractive 1-story front facing Center Street with great signage visibility.
Parking Ratio: 4.1 (per 1000 SF)
Parking Type: Surface
Parking Description: There are about 50 parking spaces. These are located in the front on Lee Hwy, in the rear on Center Street and the north side of the building.
Total Parking Spaces: 50
Sprinklers: None
Heat Type: Natural Gas
Heat Source: Central
Air Conditioning: Engineered System
Internet Access: Fiber Optic
Interior Description: The building contains 3 suites. The first floor has two suites ( 101 & 102) of 3,025 SF and the upstairs suite (201) contains 6,125 SF. All three suites contain medical related practices.
Zoning Description: C2 - Commercial
Lot Frontage: 117'
Lot Depth: 291'
Water Service: Municipal
Sewer Type: Municipal
Land Ownership: Owned

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Demographic Statistics

Proximity: 1 mile 3 miles 5 miles
Total Population: 5,599 41,181 116,575
Median Age: 43.83 39.76 39.98
Households: 2,701 17,895 48,428

Contact

Photograph of Listing Agent

Robert Fisher

KW Commercial Greater Chattanooga REALTORS® Member
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