West Tennessee Healthcare - Jackson, TN
IG Healthcare Tenant | 7.10% CAP | True NNN Lease | Mission-Critical Medical Facility
Marketing description
Riverwest Real Estate Group is pleased to exclusively offer for sale the West Tennessee Healthcare outpatient medical facility located at 1270 Union University Drive in Jackson, Tennessee.
This single-tenant net lease investment is leased to West Tennessee Healthcare, one of the largest and most respected not-for-profit healthcare systems in the United States. The tenant is supported by Jackson-Madison County General Hospital, carrying investment-grade credit ratings of BBB+ from S&P and A3 from Moody's. West Tennessee Healthcare operates a regional network of hospitals, outpatient facilities, and medical providers serving a 17-county area throughout West Tennessee.
The property consists of approximately 11,970 square feet situated on ±1.30 acres and was originally constructed in 2018. The facility serves as a mission-critical outpatient location for the healthcare system and has demonstrated strong tenant commitment through expansion in 2020 and an additional $1 million investment in tenant improvements in 2022.
Investors benefit from a passive NNN lease structure with limited landlord responsibilities and an attractive 7.10% cap rate. The tenant is responsible for taxes, insurance, maintenance, utilities, HVAC, and parking lot expenses, providing stable and predictable cash flow.
Strategically positioned within Jackson's primary retail and healthcare corridor, the property enjoys exceptional visibility and accessibility near Interstate 40, Union University, and West Tennessee Healthcare's North Campus. The surrounding area is anchored by national retailers including Target, Kroger, Academy Sports, Petco, T.J. Maxx, Burlington, Starbucks, McDonald's, Walgreens, and numerous medical users, creating a highly desirable investment location.
This offering presents the rare opportunity to acquire an investment-grade healthcare asset backed by a dominant regional healthcare provider in a growing Tennessee market, combining durable income, strong tenant credit, and long-term real estate fundamentals.
Investment highlights
• Investment Grade Healthcare Tenant (S&P: BBB+ | Moody's: A3)
• Attractive 7.10% Cap Rate with Annual NOI of $264,537
• True NNN Lease Structure – Tenant Responsible for Taxes, Insurance, Maintenance, HVAC, Utilities and Parking Lot
• Mission-Critical Medical Facility Occupied Since 2017 with Tenant Expansion and Additional Capital Investment Demonstrating Long-Term Commitment
• 4.6 Years Remaining on Primary Lease Term with Two (5-Year) Renewal Options at Market Rent
• Landlord Responsibility Limited to Roof and Structure Replacement Only
• Below-Market Rental Rate of $22.10 PSF Provides Future Upside Potential
• Located Adjacent to West Tennessee Healthcare's North Campus within the Region's Dominant Medical Corridor
• Situated Along Union University Drive with Exposure to Approximately 48,000 Vehicles Per Day
• Strategically Positioned in Jackson, Tennessee ("The Hub City"), Serving a 17-County Trade Area Between Memphis and Nashville
• Fee Simple Ownership of a Newer Construction (2018) Medical Asset
• Tennessee Benefits from No State Income Tax and Continued Population Growth
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