Single-Tenant Medical
For Sale
Contact for pricing
1270 UNION UNIVERSITY DR, Jackson, TN 38305
Outpatient healthcare facility with a passive NNN lease and tenant responsibility for operating expenses.
Property Size11,970 SF
Lot Size1.30 Acres
Price / SF$311.28
Days on Market84
Property Features for 1270 UNION UNIVERSITY DR
General Information
Standard status
Active
Size
11,970 SF
Class
A
Lot size
1.30 Acres
Property subtype
Office
Occupancy
100%
Lease Type
NNN
Investment Type
Net Lease
Net Operating Income
$264,390
Additional Details
Cap Rate
7.1%
Highway Access
Yes
Building Details
Year Built
2018
Year Renovated
2020
Buildings
1
Stories
1
Tenancy
Single
Owner Occupied
No
Listing Agency:
River West Real Estate Group
Listed By:
Jason Caplan · License #AZ BR700751000
Source:
Crexi
Added: Jun 9
Changed: Aug 30
Last Checked: Aug 30 at 2:10AM
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 River West Real Estate Group
Investment Insights
Based on property information with market context.
This approximately 11,970-square-foot outpatient medical facility occupies ±1.30 acres and was constructed in 2018. The property is leased to West Tennessee Healthcare under a single-tenant NNN structure, with the tenant responsible for taxes, insurance, maintenance, utilities, HVAC, and parking lot expenses. Expansion work was completed in 2020, followed by $1 million in tenant improvements during 2022.
The facility is located at 1270 Union University Drive in Jackson, Tennessee, near Interstate 40, Union University, and West Tennessee Healthcare’s North Campus. The surrounding corridor includes Target, Kroger, Academy Sports, Petco, T.J. Maxx, Burlington, Starbucks, McDonald’s, Walgreens, and other medical users. The lease carries a 7.10% cap rate, while tenant support includes Jackson-Madison County General Hospital credit ratings of BBB+ from S&P and A3 from Moody’s.
The facility is located at 1270 Union University Drive in Jackson, Tennessee, near Interstate 40, Union University, and West Tennessee Healthcare’s North Campus. The surrounding corridor includes Target, Kroger, Academy Sports, Petco, T.J. Maxx, Burlington, Starbucks, McDonald’s, Walgreens, and other medical users. The lease carries a 7.10% cap rate, while tenant support includes Jackson-Madison County General Hospital credit ratings of BBB+ from S&P and A3 from Moody’s.
Key Highlights
- Approximately 11,970 square feet on ±1.30 acres
- Constructed in 2018 with expansion completed in 2020
- Additional $1 million in tenant improvements completed in 2022
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
$135,430
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
3.63%
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%
$2,708,600
$2.7M
Cap Rate 7%
$1,934,714
$1.9M
Cap Rate 9%
$1,504,778
$1.5M
Market Conditions
NOI Build-Up for 11,970 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
$258.6K $21.60/SF
− Vacancy
−$32.8K −$2.74/SF
EGI
$225.7K $18.86/SF
− OpEx
−$90.3K −$7.54/SF
NOI
$135.4K $11.31/SF
Area
Madison County, TN
Vacancy
12.70%
Lease Rate
$21.60 /SF/Yr
Expense Ratio
40.00%
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%
$2,708,600
Cap Rate 7%
$1,934,714
Cap Rate 9%
$1,504,778
Alternative Uses
Best Use
Healthcare Medical
$1.93M
$1.69M – $2.26M
NOI $135,430 @ 7.0% cap · market cap 3.63%
Second Best
Office B
$1.82M
$1.60M – $2.13M
NOI $127,735 @ 7.0% cap · market cap 3.43%
Theoretical Best
Office A
$2.46M
$2.16M – $2.88M
NOI $172,540 @ 7.0% cap · market cap 4.63%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
1,067
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 38305, TN
52,686
Population
22,950
Households
2.3
Avg Household Size
40
Median Age
32%
College-Educated
94%
High-School Grad
128.0 sq mi
ZIP Area
412
Density / Sq Mi
$66,292
Median Household Income
$37,416
Median Earnings
$1,201
Median Rent
$221,200
Median Home Value
Market
Vacancy Rate% for Office in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Medical Office Space - Outpatient healthcare facility with a passive NNN lease and tenant responsibility for operating expenses.
Where is this medical office space located?
The property is located at 1270 UNION UNIVERSITY DR Jackson, TN.
What is the asking price?
The asking price for this property is $3,726,000.
What are key features of this property?
This property features: Approximately 11,970 square feet on ±1.30 acres; Constructed in 2018 with expansion completed in 2020; Additional $1 million in tenant improvements completed in 2022
