Listed by ParaSell Inc, Sands Investment Group Los Angeles, Sands Investment Group
$2,300,000
Department of Veteran Affairs - Paducah KY
Details
Property Type Office
Sub Type Medical Office
Square Footage 11,500
Cap Rate 10.28%
NOI $236,432
Occupancy 100%
Tenancy Single
Brand/Tenant Department of Veteran Affairs
Lease Type Gross
Lease Term 11
Lease Expiration 01/31/2028
Remaining Term 1.5
Rent Bumps Yes
Lease Options Exhausted
Price per SqFt $200
Year Built 2007
Year Renovated 2017
Acreage 1.236
Investment Type Net Lease
Tenant Credit Corporate Guarantee
Lease Commencement 02/01/2017
High-Demand VA Clinic - Kentucky | 9.75% CAP | Multi-State Patient Base
Marketing description
We are pleased to exclusively offer for sale the 11,500 SF Department of Veteran Affairs facility located at 2620 Perkins Creek Drive in Paducah, KY. The property operates as a Community-Based Outpatient Clinic (CBOC), delivering primary care, mental health services, and a variety of specialty outpatient services. The clinic is supported by seven providers across approximately 9 specialties, ensuring consistent patient demand and essential healthcare services for the surrounding community, providing for a strong and stable investment opportunity.
Investment highlights
- In 2017, the VA established operations at this location, delivering a full build-out to conform with rigorous federal government specifications.
- The facility operates as a Community-Based Outpatient Clinic (CBOC), providing primary care, mental health services, and a range of specialty outpatient services, supported by seven providers across approximately 9 specialties.
- Serves a regional veteran population across western Kentucky and southern Illinois.
- Functions as a key rural healthcare hub with a multi-state catchment spanning KY, IL, MO, and parts of TN.
- VA leases have demonstrated historically high renewal rates, generally ranging between 80% and 90%.
- The property is conveniently located within approximately 10 minutes of 2 major hospitals, Baptist Health Paducah and Lourdes Hospital.
- The property is located adjacent to major national retailers, including Walmart and Home Depot.
- Serving a multi-county, multi-state veteran population, the clinic is well-positioned near I-24, the US-60 and US-45 corridors, and a dominant retail and commercial corridor.
- Based on available records, the current lease began in 2017, and ownership does not have documentation of any earlier agreements. However, historical Google imagery shows the VA operating at this location as early as 2008, indicating the property was likely originally developed as a build-to-suit for the tenant.
Listing Contacts
Listed by ParaSell Inc, Sands Investment Group Los Angeles, Sands Investment Group
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Loan Amount
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Annual Debt Service
$--
$--
Annual Cash Flow
$236,432.00
$19,702.67/mo
Valuation Metrics
0
DSCR
10.28%
Cap Rate
10.28%
ROI
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