Tennessee Department of Children’s Services 10 Year Lease

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