Medical Building with Exam
For Sale
$399,000
1721 Highway 51 S, Covington, TN 38019
Medical building featuring multiple exam rooms and dedicated parking.
Property Size2,000 SF
Price / SF$199.50
Days on Market101
Property Features for 1721 Highway 51 S
General Information
Standard status
Active
Size
2,000 SF
Property subtype
Commercial
Amenities
Lot Size Acres: 1
Asphalt Roof
Sewer Type: Municipal
Percentage of Tax that is Deductable: 0
Linoleum Floor
Has Central AC: 1
Forced Air Heating, Natural Gas Heat Fuel
Sale, Sale Type: Foreclosure
Basement Type: Slab
One Story, Built in 1989
Above Area Square Feet: 2000
3 Half Baths
Water Source: Municipal, Natural Gas Available
Amps: 200
Construction Type: Masonry - Brick
Alarm
Brick Siding
Building Details
Year Built
1989
Listing Agency:
Tiger Realty
(901) 770-7835
Listed By:
Jim Williams · License #327170
(901) 770-7835
Source:
Doyle-realty
Added: May 21
Changed: Aug 27
Last Checked: Aug 28 at 12:09PM
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 Tiger Realty
Investment Insights
Based on property information with market context.
This medical building includes an office, break room, counseling area, and four exam rooms. The large waiting room features a guest restroom. In the treatment area, there are two staff/patient restrooms. Patient parking is available in the front, with staff parking located in the rear. Note that the medical equipment is not included in the sale.
Key Highlights
- Medical building featuring 4 exam rooms
- Large waiting room with guest restroom
- Includes office break room and counseling area
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
$25,250
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
6.33%
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%
$505,000
$505.0K
Cap Rate 7%
$360,714
$360.7K
Cap Rate 9%
$280,556
$280.6K
Market Conditions
NOI Build-Up for 2,000 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
$40.1K $20.04/SF
− Vacancy
−$6.4K −$3.21/SF
EGI
$33.7K $16.83/SF
− OpEx
−$8.4K −$4.21/SF
NOI
$25.3K $12.63/SF
Area
Tipton County, TN
Vacancy
16.00%
Lease Rate
$20.04 /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%
$505,000
Cap Rate 7%
$360,714
Cap Rate 9%
$280,556
Alternative Uses
Best Use
Office B
$360.7K
$315.6K – $420.8K
NOI $25,250 @ 7.0% cap · market cap 6.33%
Second Best
Healthcare Medical
$344.4K
$301.3K – $401.8K
NOI $24,106 @ 7.0% cap · market cap 6.04%
Theoretical Best
Office A
$530.7K
$464.4K – $619.2K
NOI $37,152 @ 7.0% cap · market cap 9.31%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
316
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 38019, TN
15,129
Population
6,543
Households
2.3
Avg Household Size
40
Median Age
15%
College-Educated
88%
High-School Grad
140.6 sq mi
ZIP Area
108
Density / Sq Mi
$59,957
Median Household Income
$38,118
Median Earnings
$912
Median Rent
$195,400
Median Home Value
Market
Vacancy Rate% for Office in South region
Questions? Ask Rey
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Similar Off Market Nearby
- Covington Animal Clinic — 1281 U.S. 51 S, Covington, TN 38019
Frequently Asked Questions
What type of property is this?
Medical Office Space - Medical building featuring multiple exam rooms and dedicated parking.
Where is this medical office space located?
The property is located at 1721 Highway 51 S Covington, TN.
What is the asking price?
The asking price for this property is $399,000.
What are key features of this property?
This property features: Medical building featuring 4 exam rooms; Large waiting room with guest restroom; Includes office break room and counseling area
