Medical Office
New
For Sale
Contact for pricing
320 Park 40 N Boulevard, Knoxville, TN 37923
A single-tenant clinic occupies a renovated medical office building within an established healthcare cluster.
Property Size4,707 SF
Lot Size1.11 Acres
Price / SF$409.29
Days on Market5
Property Features for 320 Park 40 N Boulevard
General Information
Standard status
Active
Size
4,707 SF
Lot size
1.11 Acres
Property subtype
Office
Additional Details
Gross Income
$122,334
Highway Access
Yes
Building Details
Year Built
1980
Year Renovated
2017
Tenancy
Single
Owner Occupied
No
Listing Agency:
Northmarq - Tulsa
Listed By:
Kelly Largent · License #TX
(918) 494-2690
Source:
Crexi
Added: Sep 21
Changed: Sep 24
Last Checked: Sep 24 at 3:01PM
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 Northmarq - Tulsa
Investment Insights
Based on property information with market context.
This medical office condominium includes a 4,707-square-foot building on 1.11 acres. Constructed in 1980, the property underwent renovation in 2017 for use as a home dialysis clinic. It is occupied by one tenant under an NN lease, with approximately 11.4 years remaining through January 31, 2038, and three additional five-year renewal options. Annual rent increases by 2%; the lease has no early termination or kick-out provisions and assigns minimal responsibilities to the landlord. The lease is guaranteed by Fresenius Medical Care Holdings, Inc., rated BBB- by Standard & Poor’s and Baa3 by Moody’s.
The property at 320 Park 40 N Boulevard in Knoxville sits directly beside Parkwest Medical Center and within a concentration of medical offices, surgery services, and specialty care providers. Interstate 40 and Interstate 140 provide regional access.
The property at 320 Park 40 N Boulevard in Knoxville sits directly beside Parkwest Medical Center and within a concentration of medical offices, surgery services, and specialty care providers. Interstate 40 and Interstate 140 provide regional access.
Key Highlights
- 4,707‑square‑foot medical office building on 1.11 acres
- Built in 1980 and renovated in 2017 for a home dialysis clinic
- Single‑tenant occupancy under an NN lease with approximately 11.4 years remaining through January 31, 2038
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
$62,274
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
3.23%
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%
$1,245,480
$1.2M
Cap Rate 7%
$889,629
$889.6K
Cap Rate 9%
$691,933
$691.9K
Market Conditions
NOI Build-Up for 4,707 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
$98.8K $21.00/SF
− Vacancy
−$15.8K −$3.36/SF
EGI
$83.0K $17.64/SF
− OpEx
−$20.8K −$4.41/SF
NOI
$62.3K $13.23/SF
Area
Knoxville, 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%
$1,245,480
Cap Rate 7%
$889,629
Cap Rate 9%
$691,933
Alternative Uses
Best Use
Office B
$889.6K
$778.4K – $1.04M
NOI $62,274 @ 7.0% cap · market cap 3.23%
Second Best
Healthcare Medical
$855.5K
$748.6K – $998.1K
NOI $59,884 @ 7.0% cap · market cap 3.11%
Theoretical Best
Office A
$1.17M
$1.02M – $1.36M
NOI $81,608 @ 7.0% cap · market cap 4.24%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Lease Details
Single-tenant
Tenancy
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
2,331
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 37923, TN
29,705
Population
14,238
Households
2.1
Avg Household Size
37
Median Age
47%
College-Educated
93%
High-School Grad
11.1 sq mi
ZIP Area
2,676
Density / Sq Mi
$70,046
Median Household Income
$42,498
Median Earnings
$1,303
Median Rent
$292,500
Median Home Value
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
View Realmo Analytics
Market
Vacancy Rate% for Office in South region
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Frequently Asked Questions
What type of property is this?
Medical Office Space - A single-tenant clinic occupies a renovated medical office building within an established healthcare cluster.
Where is this medical office space located?
The property is located at 320 Park 40 N Boulevard Knoxville, TN.
What is the asking price?
The asking price for this property is $1,926,534.
What are key features of this property?
This property features: 4,707‑square‑foot medical office building on 1.11 acres; Built in 1980 and renovated in 2017 for a home dialysis clinic; Single‑tenant occupancy under an NN lease with approximately 11.4 years remaining through January 31, 2038
