3430 Summer Ave Memphis, TN 38122-3610

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.