This exceptional 50,050 square foot medical office building in Kingsport, Tennessee, presents a compelling investment opportunity. Located at 1905 American Way, this single-story, Class B building boasts 100% occupancy with a weighted average lease term exceeding 4.5 years. The property is anchored by Ballad Health, a highly-rated, multi-state healthcare system with investment-grade credit ratings from S&P, Moody's, and Fitch. Built in 1983 and renovated in 2017, the building features 268 parking spaces and sits on a 5.35-acre lot in the B-2 Central Business District, zoned for commercial use. The current lease, commencing September 12, 2008, and expiring September 30, 2028, includes annual rent bumps ranging from 3% to 20%. Two additional tenants, Creekside Behavior Health and Skin by Lori, occupy space within the building. The property's strategic location, just 2.5 miles from Holston Valley Medical Center and across from Indian Path Community Hospital (both Ballad Health facilities), ensures strong long-term viability. The asking price is $10,595,000, representing a current cap rate of 9.25% and a pro-forma cap rate of 11.18%. The property's strong tenant, favorable lease terms, and prime location make it an attractive investment with significant potential for future growth. The Net Operating Income (NOI) is $980,011. Lease options for 2-5 years exist at market rate or above.
Highlights
Strong 3.73% average annual rent growth (10-year average).
Rare 4.19% compounded annual growth rate (10-year NOI CAGR).
100% stabilized occupancy.
Anchored by Ballad Health, an investment-grade, multi-state healthcare provider.
Ballad Health has investment-grade credit ratings: S&P (A), Moody's (A3), and Fitch (A).
89.04% of property income is from Ballad Health, an investment-grade tenant.
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zachary zurich
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1905 American Way, Kingsport, Tennessee, 37660
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The property value estimates provided on this website are automated calculations based on publicly available data, user-submitted information, and proprietary algorithms. These estimates are not appraisals and should not be used as a substitute for a professional valuation by a licensed appraiser.
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1905 American Way
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