Brand New 10 Year AAA Credit State of TN Office With Upside
State of Tennessee Starting Fresh 10 Year Lease In January 2025
Marketing description
JTU Net Lease Group along with Marcus & Millichap are pleased to offer for sale, the fee simple interest in Freedom Plaza, an office building, in Cookeville, TN.
Freedom Plaza is located at 1843 Foreman Dr in Cookeville, Tennessee. The property consists of a two-story 25,737 government leased office building on a 2.5 acre lot. The anchor tenant occupying 73% of the building is the State of Tennessee, a sticky tenant with AAA credit rating from all three agencies that will start a new 10 Year lease on January 1st of 2025. Built in 2008 Freedom Plaza stands on a 2.50 AC lot with 135+ surface parking spaces. Government tenants make up 90% of the rental income. The property is within 3 miles from major national tenants including Walmart, Sam’s Club, Lowe’s, Chick-fil-A, Publix, AMC, Cracker Barrel, Arby’s, Hardee’s, and more.
The property is walking distance from Holiday Inn Cookeville and off Willow Ave, Cookeville’s main thoroughfare also benefiting from its location near Interstate 40, the third longest Interstate Highway that runs from California at Barstow to North Carolina at Wilmington. Economic growth in Tennessee has been driven by a rising population and the state’s success at attracting new industries, particularly in trade and manufacturing. Despite relatively low wealth levels compared to national averages, employment and income growth has slightly outpaced the U.S. over the past decade
Investment highlights
» Brand new 10-Year lease with State of Tennessee (AAA credit rating by all three agencies)
» Building is 93% occupied with reliable government tenants (State of TN, USDA, US Army)
» State of Tennessee takes up 73% of the net operating income
» Rare opportunity to acquire a high-quality, income-producing asset with AAA rated government-backed leases
» Right off Interstate 40 surrounded by major national retail tenants including Walmart, Sam’s
» Club, Lowe’s, Chick-fil-A, Publix, AMC, Cracker Barrel, Arby’s, Hardee’s, and more
» Anchor tenant occupying 73% of the building with a AAA credit rating across all 3 agencies
» State of TN higher credit rating (AAA) than the federal government (AA+)
» Within 500 feet of Arby’s, Hardee’s, Waffle House, and Bojangles
» Rental Increases: 3.65% at Year 4; 4% at Year 7 (State of TN); 3% every 5 Years (DaVita)
» Extremely low submarket vacancy rate of 1.1% demonstrating strong demand for office space
» Minutes to VA Outpatient Clinic and Cookeville Regional Medical Center
» Walking proximity to Holiday Inn Cookeville, an IHG Hotel
» Tax Free State, No State Income Tax in Tennessee
» #1 state in the U.S. for the lowest state debt per capita
» #1 state in the U.S. for global access and infrastructure
» #1 state in the U.S. for advanced industry job growth
» #3 top State for Business – CNBC, 2023
» Gold LEEDS rating
» Mix of professional office and government tenants
» Close Proximity to Interstate 40, the third-longest interstate highway
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