Income-Producing Medical Investment
For Sale
$1,400,000
421 N Broadway, Portland, TN 37148
Fully stabilized medical investment property in a rapidly growing Tennessee community.
Property Size5,100 SF
Price / SF$274.51
Days on Market456
Property Features for 421 N Broadway
General Information
Standard status
Active
Size
5,100 SF
Building Details
Year Built
1948
Listing Agency:
COMPASS RE
Listed By:
TANNER SMITH
(615) 475-5616
Source:
Corcoran
Added: Jun 24, 2025
Changed: Mar 16
Last Checked: Mar 16 at 9:09AM
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 COMPASS RE
Investment Insights
Based on property information with market context.
This property offers the opportunity to acquire a stabilized, income-producing medical investment located in Portland, Tennessee. The ±0.82-acre parcel includes a ±5,000 SF medical office building and a ±938 SF tenant-occupied residential home, providing diversified income across three tenants and two asset types. The property will be secured by a new 5-year NNN leaseback with Firefly Health ($5,000/month) and an existing lease with NuLife Physical Therapy ($1,700/month MG) through September 30, 2029, alongside a residential lease at $1,000/month. Combined, the asset generates $92,400 in annual rental income with a NOI of $83,400, supporting a 6.0% cap rate. Originally built in 1948 and updated for modern healthcare operations in 2024, the medical office is well-maintained with established tenancy and immediate in-place cash flow. The property is located 45 minutes north of Nashville in Sumner County, an area experiencing sustained demand for both healthcare and housing. This investment is suitable for buyers seeking stable medical tenancy, low management requirements, and long-term growth potential in a high-demand Middle Tennessee market.
Key Highlights
- Fully stabilized, income‑producing medical investment property.
- Diversified income stream from three tenants and two asset types (medical office and residential).
- Strong 6.0% cap rate with $83,400 NOI. Minimal landlord obligations.
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
$85,328
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
6.09%
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%
$1,706,560
$1.7M
Cap Rate 7%
$1,218,971
$1.2M
Cap Rate 9%
$948,089
$948.1K
Market Conditions
NOI Build-Up for 5,100 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
$134.6K $26.40/SF
− Vacancy
−$20.9K −$4.09/SF
EGI
$113.8K $22.31/SF
− OpEx
−$28.4K −$5.58/SF
NOI
$85.3K $16.73/SF
Area
Sumner County, TN
Vacancy
15.50%
Lease Rate
$26.40 /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%
$1,706,560
Cap Rate 7%
$1,218,971
Cap Rate 9%
$948,089
Alternative Uses
Best Use
Office B
$1.22M
$1.07M – $1.42M
NOI $85,328 @ 7.0% cap · market cap 6.09%
Second Best
Healthcare Medical
$985.9K
$862.7K – $1.15M
NOI $69,015 @ 7.0% cap · market cap 4.93%
Theoretical Best
Specialty Retail
$1.79M
$1.56M – $2.08M
NOI $124,961 @ 7.0% cap · market cap 8.93%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Current Use
Location Intelligence
Trade Area within ½ mile
273
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 37148, TN
25,318
Population
9,919
Households
2.6
Avg Household Size
38
Median Age
14%
College-Educated
88%
High-School Grad
131.9 sq mi
ZIP Area
192
Density / Sq Mi
$77,684
Median Household Income
$39,949
Median Earnings
$1,082
Median Rent
$273,200
Median Home Value
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Market
Vacancy Rate% for Office in South region
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Frequently Asked Questions
What type of property is this?
Medical Office Space - Fully stabilized medical investment property in a rapidly growing Tennessee community.
Where is this medical office space located?
The property is located at 421 N Broadway Portland, TN.
What is the asking price?
The asking price for this property is $1,400,000.
What are key features of this property?
This property features: Fully stabilized, income‑producing medical investment property.; Diversified income stream from three tenants and two asset types (medical office and residential).; Strong 6.0% cap rate with $83,400 NOI. Minimal landlord obligations.
