Walgreens NNN Lease Investment
For Sale
Contact for pricing
11305 Chapman Hwy, Seymour, TN 37865
NNN leased Walgreens in Seymour, TN with long-term options.
Property Size14,490 SF
Price / SF$295.72
Days on Market891
Property Features for 11305 Chapman Hwy
General Information
Standard status
Active
Size
14,490 SF
Property subtype
Retail
Occupancy
100%
Lease Type
Absolute Net
Investment Type
Net Lease
Net Operating Income
$285,000
Building Details
Tenancy
Single
Listing Agency:
Colliers - Los Angeles - Orange County, California
(949) 724-5561
Listed By:
Eric Carlton · License #CA 01809955
Source:
Crexi
Added: Mar 15, 2024
Changed: Aug 8
Last Checked: Aug 21 at 10:13AM
Displayed information is deemed reliable but is not guaranteed and should be independently verified. All listing content including descriptions, pricing, images are the copyrighted material of Colliers - Los Angeles - Orange County, California
Investment Insights
Based on property information with market context.
This single-tenant property is fully occupied by Walgreens and available for purchase. The absolute NNN leased investment (fee simple) has approximately 5.7 lease years remaining, with options to extend through 2078. The property is located in Seymour, TN, at the intersection of Chapman Hwy (Hwy 441) and Marysville Hwy (Hwy 35), which have a combined traffic count of over 27,000 vehicles per day. Seymour is part of the Knoxville MSA, with a population of 861,000, and is located 12 miles from downtown Knoxville. Nearby retailers include Food City, Tractor Supply Co., AutoZone, Starbucks, McDonald’s, Taco Bell, and Burger King. The property has successfully operated at this location for over 20 years. The property size is 14490 square feet.
Key Highlights
- Absolute NNN lease offers a completely passive income stream.
- Investment‑grade tenant Walgreens (rated "BBB" by S&P) provides financial stability.
- Long‑term lease with options to extend through 2078.
Financial Insights
Estimated NOI and Cap Rate
NOI = area × lease_rate × (100 − vacancy) / 100 × (1 − expense_ratio). Net Operating Income — what the owner takes home each year before mortgage payments and income tax. Effective rent (asking rent minus vacancy losses) minus operating costs (taxes, insurance, maintenance, management).
NOI / Yr
$188,676
Cap rate = NOI / list price × 100. Capitalization rate — annual return on a fully cash purchase, before financing. NOI divided by price. Higher means more income per dollar invested, but usually also more risk or older condition. 5–8% is typical for stabilized commercial property; double digits often signal distressed deals.
Cap Rate
4.40%
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$3,773,520
$3.8M
Cap Rate 7%
$2,695,371
$2.7M
Cap Rate 9%
$2,096,400
$2.1M
Market Conditions
NOI Build-Up for 14,490 SF
Vacancy — income lost from leasable area expected to sit empty during the year, subtracted from gross rent.
EGI (Effective Gross Income) — gross rent minus vacancy losses, the realistic income before paying operating costs.
OpEx (Operating Expenses) — recurring costs to operate the property (property tax, insurance, utilities, maintenance, management); excludes financing and capital improvements.
NOI (Net Operating Income) — income a property generates after operating costs but before financing and taxes.
Gross rent
$259.1K $17.88/SF
− Vacancy
−$7.5K −$0.52/SF
EGI
$251.6K $17.36/SF
− OpEx
−$62.9K −$4.34/SF
NOI
$188.7K $13.02/SF
Area
Sevier County, TN
Vacancy
2.90%
Lease Rate
$17.88 /SF/Yr
Expense Ratio
25.00%
Simulate Cap Rate and NOI
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$3,773,520
Cap Rate 7%
$2,695,371
Cap Rate 9%
$2,096,400
Alternative Uses
Best Use
Specialty Retail
$2.70M
$2.36M – $3.14M
NOI $188,676 @ 7.0% cap · market cap 4.40%
Second Best
Retail
$2.53M
$2.22M – $2.95M
NOI $177,279 @ 7.0% cap · market cap 4.14%
Theoretical Best
Office A
$6.11M
$5.35M – $7.13M
NOI $427,745 @ 7.0% cap · market cap 9.98%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
376
Businesses Nearby
129k
Monthly Visits Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Dining 63%
Shops & Services 37%
McDonald's
Dining
30,641 visits/mo
0.2 miles
Weigel's
Shops & Services
27,283 visits/mo
0.2 miles
Exxon
Shops & Services
16,226 visits/mo
0.1 miles
Taco Bell
Dining
15,184 visits/mo
0.3 miles
Burger King
Dining
11,496 visits/mo
0.1 miles
Demographics for 37865, TN
22,567
Population
10,329
Households
2.2
Avg Household Size
44
Median Age
23%
College-Educated
93%
High-School Grad
73.3 sq mi
ZIP Area
308
Density / Sq Mi
$88,410
Median Household Income
$43,269
Median Earnings
$1,351
Median Rent
$276,900
Median Home Value
Market
Vacancy Rate% for Retail in South region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Similar Off Market Nearby
- Walgreens Pharmacy — 11305 Chapman Hwy, Seymour, TN 37865
- Richard A. Gillespie, RPH — 11503 Chapman Hwy, Seymour, TN 37865
- Alicia Gandee, PharmD — 11305 Chapman Hwy, Seymour, TN 37865
- Aaron Dugger, PharmD — 11305 Chapman Hwy, Seymour, TN 37865
- Food City Pharmacy — 11503 Chapman Hwy, Seymour, TN 37865
Frequently Asked Questions
What type of property is this?
Drug store - NNN leased Walgreens in Seymour, TN with long-term options.
Where is this drug store located?
The property is located at 11305 Chapman Hwy Seymour, TN.
What is the asking price?
The asking price for this property is $4,285,000.
What are key features of this property?
This property features: Absolute NNN lease offers a completely passive income stream.; Investment‑grade tenant Walgreens (rated "BBB" by S&P) provides financial stability.; Long‑term lease with options to extend through 2078.
