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2620 Perkins Creek Dr - VA CLINIC NNN LEASE, Paducah, KY 42001
Single tenant building leased to the United States Government.
Property Size11,500 SF
Price / SF$208.26
Days on Market698
Property Features for 2620 Perkins Creek Dr - VA CLINIC NNN LEASE
General Information
Standard status
Active
Size
11,500 SF
Property subtype
Office
Zoning
C
Building Details
Year Built
2005
Listing Agency:
Arnold Realty Group
(270) 558-1338
Listed By:
Dawn Arnold · License #KY 218391
Source:
Crexi
Added: Sep 24, 2024
Changed: Aug 21
Last Checked: May 13 at 8:20PM
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 Arnold Realty Group
Investment Insights
Based on property information with market context.
This property presents an investment opportunity with a single credit tenant building under a triple net lease. The tenant is the United States Government, specifically The Veterans Affairs (VA) Outpatient Center, a Community-Based Outpatient Clinic, which has occupied the space since 2017. The property is situated in the Strawberry Hill Area, an area experiencing significant development. A new lease extension was signed on February 1, 2025, extending through January 31, 2028. The Veterans Affairs (VA) Outpatient Center is a Community-Based Outpatient Clinic (CBOC) designed to improve healthcare access. The Veterans Health Administration (VHA) uses CBOCs nationwide to provide common outpatient services, including health and wellness visits, without requiring visits to larger medical centers. VHA is expanding its networks to include more rural locations, bringing care closer to home. The property is suitable for commercial real estate, medical office space, and general office use.
Key Highlights
- Triple net lease with the United States Government (Veterans Affairs) as the tenant.
- New lease extension signed through 1/31/2028, providing stable income.
- Property located in an area with significant ongoing development, increasing property value.
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
$119,573
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
4.99%
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%
$2,391,460
$2.4M
Cap Rate 7%
$1,708,186
$1.7M
Cap Rate 9%
$1,328,589
$1.3M
Market Conditions
NOI Build-Up for 11,500 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
$218.0K $18.96/SF
− Vacancy
−$18.8K −$1.63/SF
EGI
$199.3K $17.33/SF
− OpEx
−$79.7K −$6.93/SF
NOI
$119.6K $10.40/SF
Area
McCracken County, KY
Vacancy
8.60%
Lease Rate
$18.96 /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%
$2,391,460
Cap Rate 7%
$1,708,186
Cap Rate 9%
$1,328,589
Alternative Uses
Best Use
Healthcare Medical
$1.71M
$1.49M – $1.99M
NOI $119,573 @ 7.0% cap · market cap 4.99%
Second Best
Office B
$1.57M
$1.37M – $1.83M
NOI $109,969 @ 7.0% cap · market cap 4.59%
Theoretical Best
Warehouse
$2.40M
$2.10M – $2.80M
NOI $167,727 @ 7.0% cap · market cap 7.00%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
456
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 42001, KY
31,579
Population
14,815
Households
2.1
Avg Household Size
41
Median Age
36%
College-Educated
94%
High-School Grad
74.2 sq mi
ZIP Area
426
Density / Sq Mi
$68,868
Median Household Income
$42,334
Median Earnings
$916
Median Rent
$210,100
Median Home Value
Market
Vacancy Rate% for Office in South region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Similar Off Market Nearby
- Progressive Animal Healthcare — 2630 James Sanders Blvd, Paducah, KY 42001
- Heartland Veterinary Hospital — 3137 Olivet Church Rd, Paducah, KY 42001
- Clayton Potter William DVM — 3137 Olivet Church Rd, Paducah, KY 42001
Frequently Asked Questions
What type of property is this?
Medical Office Space - Single tenant building leased to the United States Government.
Where is this medical office space located?
The property is located at 2620 Perkins Creek Dr - VA CLINIC NNN LEASE Paducah, KY.
What is the asking price?
The asking price for this property is $2,395,000.
What are key features of this property?
This property features: Triple net lease with the United States Government (Veterans Affairs) as the tenant.; New lease extension signed through 1/31/2028, providing stable income.; Property located in an area with significant ongoing development, increasing property value.
