3430 Summer Ave Memphis, TN 38122-3610
- Medical offices
- 8,742 SF
- 0.85 lot acres
Current Use by Public Records
- DaVita Memphis Midtown Dialysis / Dialysis Center / Local Medical Services
- Mental Health Cooperative / Mental Health Clinic
Property Details for 3430 Summer Ave
- Year built
- 1968
- Lot size
- 0.85 lot acres
- Property size
- 8,742 SF
- Zone code
- CMU-3
- Property type
- Medical offices
- Property subtype
- Medical centers
- APN
- 038-037- - -00025-C
- APU
- 03803700025C
Description
This exceptional investment opportunity presents a freestanding, 8,735 square foot medical office building in Memphis, TN, currently 100% occupied by Mental Health Cooperative under a Net Lease (NNN) agreement. The property, situated on a 0.85-acre lot at 3430 Summer Avenue, boasts a strong location with high visibility on a major thoroughfare (27,207 AADT) and proximity to numerous retail amenities including Walgreens, Dollar General, Pizza Hut, AutoZone, Tops BBQ, Starbucks, Chick-fil-A, and Chipotle. The building, constructed in 1968, features electronically gated private parking. The current lease with Mental Health Cooperative, a national credit tenant, commenced October 25, 2022, and has a remaining term of 5.1 years, extending to December 31, 2029, with a 1 x 5-year option. The lease includes annual rent bumps of 3%, providing a hedge against inflation. The property offers a compelling 6.95% cap rate with a Net Operating Income (NOI) of $140,741 and an asking price of $2,024,000 ($231.71/sq ft). The tenant, Mental Health Cooperative, reported gross revenue of $64,841,419 in 2020 and continues to expand its operations across Tennessee. This investment is ideal for those seeking a stable, passive income stream with a strong tenant and attractive financial metrics. The property is conveniently located 2.2 miles north of the University of Memphis, 4 miles east of Overton Park, and 5.8 miles east of the Medical District.
Value Estimation
-
AI approach
- CAP return
- Estimation
- Estimation
- $625,000
-
CAP approach
- CAP return
- Estimation
- 6%
- $675,000
- 6.5%
- $765,000
- 7%
- $800,000
-
Comparable approach
- Method
- Estimation
- Relative Method
- $700,000
- Geo Method
- $715,000
-
Alternative Use
- Use
- Estimation
- Distribution
- $750,000
- Retail
- $760,000
- Mixed-Use
- $680,000
- Hospitality
- $790,000
- Educational
- $750,000
- Residential Income
- $795,000
- Energy
- $785,000
- Income-Based Land
- $700,000
- Food Service
- $700,000
Location Insight
- Map
- Local Demand
- City
- Memphis
- County
- Shelby
- State
- Tennessee
- Longitude
- -89.9468
- Latitude
- 35.1499
- CBSA code
- 32820
- CBSA name
- MEMPHIS, TN-MS-AR METROPOLITAN STATISTICAL AREA
