3430 Summer AveMemphis, TN 38122

Property Details for 3430 Summer Ave

Year built

1968

Lot size

0.85 AC

Property size (Sq ft)

8,742 SF

Zone code

CMU-3

Property type

Healthcare properties

Property subtype

Medical offices

APN

038-037- - -00025-C

APU

03803700025C

Description

This exceptional investment opportunity presents a freestanding, 8,735 square foot medical office building in Memphis, TN, currently 100% occupied by Mental Health Cooperative under a Net Lease (NNN) agreement. The property, situated on a 0.85-acre lot at 3430 Summer Avenue, boasts a strong location with high visibility on a major thoroughfare (27,207 AADT) and proximity to numerous retail amenities including Walgreens, Dollar General, Pizza Hut, AutoZone, Tops BBQ, Starbucks, Chick-fil-A, and Chipotle. The building, constructed in 1968, features electronically gated private parking. The current lease with Mental Health Cooperative, a national credit tenant, commenced October 25, 2022, and has a remaining term of 5.1 years, extending to December 31, 2029, with a 1 x 5-year option. The lease includes annual rent bumps of 3%, providing a hedge against inflation. The property offers a compelling 6.95% cap rate with a Net Operating Income (NOI) of $140,741 and an asking price of $2,024,000 ($231.71/sq ft). The tenant, Mental Health Cooperative, reported gross revenue of $64,841,419 in 2020 and continues to expand its operations across Tennessee. This investment is ideal for those seeking a stable, passive income stream with a strong tenant and attractive financial metrics. The property is conveniently located 2.2 miles north of the University of Memphis, 4 miles east of Overton Park, and 5.8 miles east of the Medical District.

• CAP approach

  CAP return

  Valuation

  6%

  $1,259,584

  6.5%

  $1,162,693

  7%

  $1,079,643

• Comparable approach

  Method

  Valuation

  Relative Method

  $681,526

  Geo Method

  $681,526

• Alternative Use

  Use

  Valuation

  Residential

  $1,441,739

  Hospitality

  $1,320,625

  Educational

  $1,098,744

  Medical

  $1,136,532

  Retail

  $1,709,158

Location Insight

City

Memphis

County

Shelby

State

Tennessee

Latitude

35.1499

Longitude

-89.9468

CBSA code

32820

CBSA name

MEMPHIS, TN-MS-AR METROPOLITAN STATISTICAL AREA

Property Tax & Assessments

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