Absolute Net - No Landlord Responsibilities

Retail-Commercial for Sale
Catylist Listing ID: 30552888
Property Subtypes: Retail-Pad, Street Retail, Other
Building Size (RSF): 18,706 SF
Gross Building Area: See Agent
Gross Land Area: 1.93 Acres
Sale Price: $4,658,500
Unit Price: $249.04 PSF
Property Use Type: Investment
Building Name: Fountain City Shops
Sale Terms: Cash to Seller
Cap Rate: 5.0%
Last Updated: 5/8/2020

Overview / Comments

Own a piece of real estate in one of Knoxville's most sought after markets. Income producing fee simple land for sale. This is a sale of the land only, with the land being subject to a ground lease providing the net income specified below. This land has been improved by an 18,706 square foot shopping center. The shops are on a ground lease which provides the fee simple landowner with $232,925 annually with increases every five years. The ground lease is an absolute net lease - no landlord responsibilities. At the end of the ground lease, the shops revert to landowner. This is a great investment opportunity!!

Retail center is 100% leased with more than 2x coverage on the ground rent. Ground lessee's current term expires 12/31/24 with options to extend through 12/31/54.

Current Term Annual Rent: $232,925.00

Option Terms Annual Rent
January 1, 2025 – December 31, 2029 $256,217.00
January 1, 2030 – December 31, 2034 $281,839.00
January 1, 2035 – December 31, 2039 $310,023.00
January 1, 2040 – December 31, 2044 $341,025.00
January 1, 2045 – December 31, 2049 $375,128.00
January 1, 2050 – December 31, 2054 $412,640.00
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Fountain City is one of the most sought after markets in Knoxville with 48,000 vpd traffic counts on Broadway.

Additional Details

Nearest MSA: Knoxville
County: Knox
Tax ID/APN: 058ND036
Property Visibility: Excellent

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Demographic Statistics

Proximity: 1 mile 3 miles 5 miles
Total Population: 6,861 69,615 148,426
Median Age: 38.56 37.91 36.62
Households: 3,201 30,665 63,511

Contact

Photograph of Listing Agent

Mark Shipe

Holrob NETAR CMLS Member
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