Tennessee Department of Children’s Services 10 Year Lease
2600 Western Ave
Knoxville, TN 37921
Highlights
- 10-Year lease through 11/30/2035
- Leased by the State of Tennessee
- AAA+ S&P Global Credit Rating
- Tenant pays utilities and janitorial
- Subject on 9.11 Acres
- Built for DCS in 2009
- HVAC replaced in 2024
- 270 paved parking spaces
- Normal state appropriations clause
- Additional 6,478 SF leasable space
- 3.38 Buildable Site included
Description
Opportunity to acquire a 55,000 SF facility on 9.11+ acres designed in 2009 for the AAA+ credit state of Tennessee for the Department of Children’s Services (DCS). The state just inked a 48,522 SF ten-year lease renewal beginning in December.
On top of a long term lease with a high credit tenant in place, the property includes two significant value-add components a 3.38 acre site & 6,478 SF of leasable space. The pricing allocation is as follows:
1. Ten-Year Lease: $6,126,800 at an approximate cap rate of 8%.
2. 3.38 Acre Site: $653,432 Site to build-up to a 20,000 SF or larger building. Value based on sale comps of $193,320 per acre.
3. New SF: $719,777 Value from approximately 6,478 SF leasable space available in December. Value is based on conservative rent of only $10/SF net, and a conservative 9% cap rate.
The property is perfectly located for DCS in Knoxville, TN, the second-fastest-growing city in the state of Tennessee. The sites are close to Interstates I-40 and I-640 in West Knoxville
This property is located in Knoxville, Tennessee.
