406 E Main Blvd, Church Hill, TN 37642

HMG Primary Care – Optum / UnitedHealth Affiliated Medical Investment

TCI Group is pleased to present the opportunity to acquire the fee simple interest in a single-tenant medical office investment occupied by Holston Medical Group (HMG) Primary Care, now operating as part of Optum, a division of UnitedHealth Group, one of the largest healthcare organizations in the United States.

The subject property consists of a 6,572 rentable square foot purpose-built medical office building constructed in 1996 specifically for HMG Primary Care and strategically located along East Main Boulevard in Church Hill, Tennessee. The clinic has operated continuously at this location for nearly three decades, demonstrating exceptional tenant commitment and long-term operational stability.

Holston Medical Group, originally founded in 1977 as a physician-owned multi-specialty practice, was acquired by Optum in August 2025 and integrated into its expanding national outpatient healthcare network. The acquisition significantly enhances the tenant’s operational platform and positions the property within the highly desirable corporate healthcare real estate investment sector.

The property is leased under a triple-net (NNN) lease structure, providing stable passive income with limited landlord responsibilities. The current lease represents the fifth amendment to the original 1996 lease agreement, reflecting a long-standing occupancy history and continued renewal commitment by the tenant. The current 10-year lease term commenced March 1, 2020 and extends through February 28, 2030, with an automatic two-year extension option. Annual base rent is $106,566, with landlord responsibilities limited to roof, HVAC, and structural components.

Primary care medical facilities represent one of the most defensive and resilient asset classes within commercial real estate, supported by demographic trends, outpatient healthcare migration, and high tenant relocation costs associated with medical build-outs.

This offering provides investors with the opportunity to acquire a stabilized healthcare investment at a 6.46% capitalization rate, combining long-term medical tenancy, corporate healthcare affiliation, and durable income characteristics in a growing Northeast Tennessee market. See Investment Strategy document for full positioning, renewal outlook, and redevelopment potential by clicking the FLYER Tab.