Mental Health Cooperative – Memphis, TN

Mental Health Cooperative
3430 Summer Ave, Memphis, TN 38122, USA

Sands Investment Group is pleased to offer for sale Mental Health Cooperative NNN, located at 3430 Summer Avenue, a stand-alone medical building located in East Memphis on a high-traffic road. The building contains 8,735 SF of medical office space occupied by Mental Health Cooperative. Mental Health Cooperative operates 12 locations across Tennessee, with its headquarters residing in Nashville.

  • ~4 years remaining on the lease term with 3% escalations, offering a hedge against inflation.
  • Strong tenant financial profile with  $94.2M annual revenue, $7.4M surplus,  7.8% surplus margin, and $121.8M net worth
  • Tenant has substantial costs in their buildout for the space.
  • Triple Net (NNN) Lease provides the landlord with passive income, backed by a 12-unit operator.
  • Area retailers include Walgreens, Dollar General, Pizza Hut, AutoZone, Tops BBQ, newly constructed Starbucks, Chick-fil-A, and Chipotle.
  • Strong traffic counts of 26,000+ VPD and a prime location just 2.2 miles north of the University of Memphis.
  • Property is located 9 miles from the MEM Airport, providing easy access for an out-of-town investor.

In Cooperation With Sands Investment Group Tennessee, LLC – Lic. #263973 BoR: Tom Gorman – Lic. TN #370394

Price

$1,705,000

Cap Rate

8.50%

PREMISES

8,735 SF

YEAR BUILT

1968

YEAR RENOVATED

2023

RENEWAL OPTIONS

1 x 5 Year Option

Lease Expiration

06/30/2030

Lease Type

NNN

RENTAL INCREASES

3% Annually

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