Kindred Healthcare
Knoxville, Tennessee
| Price | $49,031,000 |
| Cap Rate | 5.00% |
| NOI | $2,451,516 |
| Lease Term | 15 Years with 14+ Years Remaining |
| Lease Type | Absolute NNN, With Tenant Responsible For All Taxes, Insurance, and Maintenance, Including Roof, Structure and Parking Lot |
| Rental Increases | 1.75% Annual Rental Increases In Initial Term |
| Year Built | 2021 |
| Building Size | 70,005 SF |
| Lot Size | 5.973 Acres (260,184 SF) |
| Status | Available |
| Lead Broker Information | Michael T. Yuras, CCIM Vice Chairman 415.481.0788 michael.yuras@cushwake.com CA RE License #01823291 Scott Crowle Executive Managing Director 415.604.4288 scott.crowle@cushwake.com CA RE License #01318288 Vincent Aicale Executive Managing Director 415.690.5522 vince.aicale@cushwake.com CA RE License #01728696 Ryan Forsyth Executive Managing Director 415.413.3005 ryan.forsyth@cushwake.com CA RE License #01716551 |
Investment Highlights
RARE 15-YEAR ABSOLUTE NNN LEASE TO GROWING ELITE HEALTHCARE PARTNERSHIP
» Tenant is partnership between Kindred Healthcare, the University of Tennessee Medical Center, and Tennova Healthcare (Tennova is an affiliate of Community Health Systems, Inc.)
» Kindred Healthcare (31,800 employees and 1,731 locations) has annual revenues of $3.2B and has been ranked as one of Fortune Magazine’s most admired healthcare companies for nine years
» Community Health Systems, Inc. is a Fortune 500 Company (NYSE: “CYH”)
» NNN lease provides an ideal passive investment for an out-of-area investor
» Rare 1.75% annual rental increases providing a hedge against inflation
NEWLY CONSTRUCTED INPATIENT ACUTE REHABILITATION MEDICAL CENTER IN AFFLUENT TENNESSEE MARKET
» 57 bed state-of- the-art facility that includes therapy gymnasiums, therapeutic courtyard, commercial kitchen, golf chipping range, pickleball, and bocce ball courts
» Specialized treatment programs for stroke, brain injury, neurological conditions, trauma, spinal cord injury, amputation, orthopedic injury, and related disorders
» Healthcare usage is entitled and protected by State Certification of Need “CON”, limiting competition
HIGH-VISIBILITY LOCATION IN DENSELY POPULATED, AFFLUENT, AND GROWING NORTH TENNESSEE MARKET
» Located just off of Middlebrook Pike (33,070 AADT), a high traffic east-west thoroughfare connecting State Route 162 and Interstate 640
» Beneficial proximity to highly trafficked Tennessee highways, including Interstate 40, Interstate 140, and Interstate 640 (combined 359,641 AADT)
» 146,040 residents within a five-mile radius of the property
» Supported by an affluent customer base, with an average annual household income of $81,595 within a five-mile radius of the site
» Projected 10 percent average annual household income increase within a five-mile radius of the site in the next five years, poising Kindred Healthcare and Knoxville for significant concurrent growth
CENTRAL LOCATION NEAR LARGE EMPLOYERS, RETAILERS, AND COMMUNITY HUBS
» Part of Tennova Health Park, a new 109-acre medical park that will feature four separate medical facilities and will include the 64-bed Knoxville Center for Behavioral Medicine, an ambulatory surgery center and an emergency room
» Six miles from the University of Tennessee (supports 35,000 jobs, $1.7 billion annual economic impact
» Excellent location in a major commuter corridor, with close proximity to several high-density single family developments
» Seven miles from Downtown Knoxville (population 186,173)
Property Description
The property has a high-visibility location along Tennova Medical Way just off of Middlebrook Pike (33,070 AADT), a high-traffic east-west thoroughfare connecting State Route 162 and Interstate 640. The site also maintains a beneficial proximity to highly trafficked Tennessee highways, including Interstate 40, Interstate 140, and Interstate 640 (combined 359,641 vehicles per day). The location resides in a densely populated area, with 146,040 residents living within a five-mile radius of the property. The location is supported by an affluent customer base as well, with an average annual household income of $81,595 within a five-mile radius of the site. The location is primed to grow along with the surrounding area, with a projected 10 percent average annual household income increase within five miles of the site in the next five years.
Currently under construction, the site is part of Tennova Health Park, a new 109-acre medical park that will feature four separate medical facilities, the 64-bed Knoxville Center for Behavioral Medicine, and will include an ambulatory surgery center and an emergency room. Tennova Healthcare and The University of Tennessee Medical Center are partnering with Kindred Healthcare to build and operate the inpatient rehabilitation hospital, which will feature 57 beds and expects to serve more than 1,200 patients each year. Traffic to the location is increased by its proximity six miles from the University of Tennessee, which supports 35,000 jobs and generates $1.7 billion in annual economic impact. The site also maintains an excellent location in a major commuter corridor, with close proximity to several high-density single-family developments. And serves as a common gateway to Downtown Knoxville, the city’s central business district (population 186,173).
