1905 American Way Kingsport, TN 37660

Property Details for 1905 American Way

Year built

1983

Lot size

5.35 lot acres

Property size

50,050 SF

Property type

Office Properties & Spaces

Property subtype

Medical offices

Description

This exceptional 50,050 square foot medical office building in Kingsport, Tennessee, presents a compelling investment opportunity. Located at 1905 American Way, this single-story, Class B building boasts 100% occupancy with a weighted average lease term exceeding 4.5 years. The property is anchored by Ballad Health, a highly-rated, multi-state healthcare system with investment-grade credit ratings from S&P, Moody's, and Fitch. Built in 1983 and renovated in 2017, the building features 268 parking spaces and sits on a 5.35-acre lot in the B-2 Central Business District, zoned for commercial use. The current lease, commencing September 12, 2008, and expiring September 30, 2028, includes annual rent bumps ranging from 3% to 20%. Two additional tenants, Creekside Behavior Health and Skin by Lori, occupy space within the building. The property's strategic location, just 2.5 miles from Holston Valley Medical Center and across from Indian Path Community Hospital (both Ballad Health facilities), ensures strong long-term viability. The asking price is $10,595,000, representing a current cap rate of 9.25% and a pro-forma cap rate of 11.18%. The property's strong tenant, favorable lease terms, and prime location make it an attractive investment with significant potential for future growth. The Net Operating Income (NOI) is $980,011. Lease options for 2-5 years exist at market rate or above.