Medical Center with Treatment
For Sale
Contact for pricing
305 River Drive, La Follette, TN 37766
Freestanding healthcare facility with specialized plumbing, multiple exam rooms, secure reception, and dedicated storage areas.
Property Size5,688 SF
Price / SF$175.81
Days on Market34
Property Features for 305 River Drive
General Information
Standard status
Active
Size
5,688 SF
Class
A
Property subtype
Retail, Office
Building Details
Year Built
2007
Listing Agency:
Cushman & Wakefield - Nashville, Tennessee
Listed By:
Phil Fletcher · License #373909
Source:
Crexi
Added: Jul 28
Changed: Aug 29
Last Checked: Aug 29 at 7:38PM
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 Cushman & Wakefield - Nashville, Tennessee
Investment Insights
Based on property information with market context.
Freestanding medical center at 305 River Drive in LaFollette, Tennessee, completed in 2007. The 5,688-square-foot facility includes a treatment bay measuring approximately 70' × 29', four exam rooms, four restrooms, a lobby, waiting area, and several storage rooms. Integrated sinks support the treatment area, while dialysis-grade water and plumbing infrastructure are installed throughout the facility.
The building also features a secured reception area with a check-in window and dedicated hazardous materials storage. Set on 0.57 acres, the property provides 25 parking spaces and offers a purpose-built configuration for healthcare operations.
The building also features a secured reception area with a check-in window and dedicated hazardous materials storage. Set on 0.57 acres, the property provides 25 parking spaces and offers a purpose-built configuration for healthcare operations.
Key Highlights
- 5,688‑square‑foot medical center completed in 2007
- Treatment bay measures approximately 70' × 29' with integrated sinks
- Dialysis‑grade water and plumbing infrastructure
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
$75,252
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
7.53%
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%
$1,505,040
$1.5M
Cap Rate 7%
$1,075,029
$1.1M
Cap Rate 9%
$836,133
$836.1K
Market Conditions
NOI Build-Up for 5,688 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
$119.4K $21.00/SF
− Vacancy
−$19.1K −$3.36/SF
EGI
$100.3K $17.64/SF
− OpEx
−$25.1K −$4.41/SF
NOI
$75.3K $13.23/SF
Area
Campbell County, TN
Vacancy
16.00%
Lease Rate
$21.00 /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%
$1,505,040
Cap Rate 7%
$1,075,029
Cap Rate 9%
$836,133
Alternative Uses
Best Use
Office B
$1.08M
$940.7K – $1.25M
NOI $75,252 @ 7.0% cap · market cap 7.53%
Second Best
Healthcare Medical
$1.03M
$904.6K – $1.21M
NOI $72,365 @ 7.0% cap · market cap 7.24%
Theoretical Best
Office A
$1.41M
$1.23M – $1.64M
NOI $98,616 @ 7.0% cap · market cap 9.86%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
346
Businesses Nearby
Explore this area
Business Placement
Demographics for 37766, TN
18,011
Population
9,721
Households
1.9
Avg Household Size
44
Median Age
12%
College-Educated
82%
High-School Grad
137.3 sq mi
ZIP Area
131
Density / Sq Mi
$46,692
Median Household Income
$31,379
Median Earnings
$747
Median Rent
$160,500
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 center - Freestanding healthcare facility with specialized plumbing, multiple exam rooms, secure reception, and dedicated storage areas.
Where is this medical center located?
The property is located at 305 River Drive La Follette, TN.
What is the asking price?
The asking price for this property is $1,000,000.
What are key features of this property?
This property features: 5,688‑square‑foot medical center completed in 2007; Treatment bay measures approximately 70' × 29' with integrated sinks; Dialysis‑grade water and plumbing infrastructure
