Tennessee Department of Children’s Services 10 Year Lease

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.
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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.

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