Cap Rate: 5.25%
Net Operating Income: $208,000
Square Footage: 12,418
Lot Size: 1.03 AC
Year Built: 1997
This is a rare CVS/pharmacy absolute net leased offering in Chattanooga, Tennessee. The lease calls for minimal landlord obligations, with the landlord being responsible for the roof and structure only. The lease was extended 25 years in 2013 and expires in 2039. The roof was replaced in 2018 with a 20-year transferable warranty. The asset is well situated on a major commercial thoroughfare with neighboring national retail tenants including Arby’s, Krystal and Applebee’s, and is strategically located less than a mile from Parkridge East Hospital (128 bed hospital).
Chattanooga is a city in and the county seat of Hamilton County, Tennessee, along the Tennessee River bordering Georgia. With an estimated population of 182,799 in 2019, it is the fourth-largest city in Tennessee and one of the two principal cities of East Tennessee, along with Knoxville. Served by multiple railroads and Interstate highways, Chattanooga is a transit hub. Chattanooga lies 118 miles northwest of Atlanta, Georgia, 112 miles southwest of Knoxville, Tennessee, 134 miles southeast of Nashville, Tennessee, 102 miles (164 km) east-northeast of Huntsville, Alabama, and 147 miles northeast of Birmingham, Alabama.
The Chattanooga metropolitan statistical area is the fourth largest in Tennessee and the city of Chattanooga anchors a three-state area that includes Southeast Tennessee, Northwest Georgia, and Northeast Alabama. Major industry driving the economy includes automotive, advanced manufacturing, food and beverage production, healthcare, insurance, tourism, and back office and corporate headquarters.