For Sale: Strategically Located Medical Office Portfolio: Nashville, TN

131_French_Landing_Drive_2Nashville Medical Office Portfolio – 131 French Landing Drive, Nashville, TN 37228 – 200 Gleaves Street, Nashville, TN 37115

The Offering

CBRE, Inc. is pleased to offer the Nashville Medical Office portfolio for purchase as a multi-tenant medical office portfolio investment opportunity that is 93.74% occupied by strong regional medical tenants. The portfolio consists of 32,204 total net rentable square feet, with 131 French Landing Drive (15,606 SF) being constructed in 1993 and 200 Gleaves Street (16,598 SF) being constructed in 1983. The properties can be purchased individually or as a portfolio.

Investment Summary

  • Portfolio Price: $3,325,000
  • Portfolio Size: 32,204 SF
  • Occupancy: 93.74%
  • CAP Rate: 8.17%
  • 5-Year Avg. CAP Rate: 9.28%
  • NOI: $271,584
  • 5-Year Avg. NOI: $308,490
  • Projected IRR: 20.30%

Investment Highlights

  • Good Access and Visibility – Both properties benefit from quick access to major interstates. 131 French Landing Drive is less than one-half mile from Interstate 65 (I-65) and very close to Downtown Nashville. 200 Gleaves Street is within one (1) mile of Interstate 65 (I-65) and is in an elevated location providing good visibility to the property.
  • Strong Tenancy and Historical Occupancy – The major tenants in both buildings have a long history in each property and have a high probability of renewal. Goodlettsville Pediatrics, a top pediatrics group in North Nashville, has been in the 200 Gleaves Street location since 2001. Metro Center Healthcare Group, currently affiliated with St. Thomas Health (Ascension Health) has been in this location since 2001.
  • Strategic Locations – Both buildings are strategically located in high traffic areas with close proximity to major interstates. The traffic count is 24,494 daily at the intersection of Gallatin Pike and Rivergate Parkway , in close proximity to 200 Gleaves Street. 131 French Landing Road is the only true medical office building in the Metro Center submarket and also in close proximity to Downtown Nashville, four (4) major hospitals and Germantown. Germantown is one of the most active new development areas of Nashville with over 1200 new multifamily units currently under construction, the new Nashville Sounds Baseball Stadium at Sulphur Dell and many popular restaurants.
  • Ample Parking – Both properties provide ample parking for tenants. 131 French Landing Road boasts a parking ratio of 6.67 spaces per 1,000 SF by offering 104 surface spaces. 200 Gleaves Street has 111 surface spaces providing a parking ratio of 6.68 spaces per 1,000 SF and also offers additional land for parking or building expansion if needed.
  • Strong Market – The current overall Nashville office market vacancy in Q4 2013 dropped to 10.2%, and is expected to drop even further in 2014. While both buildings are currently medical facilities with the likely renewal of existing tenants, a very stable and dynamic underlying office market provides other leasing opportunities for these assets in the future.
  • “Recession Resistant” Property Category – Medical office was recently characterized as the new “recession resistant” property category in an article by National Real Estate Investor magazine. According to the article, “The allure of medical office buildings hinges largely on predictable occupancy patterns. Doctors typically sign long term leases and have renewal rates upwards of 90%.” All of this adds up to steady long-term cash flow, rent stability and fewer tenant improvement costs over the life of the property.

Contact Information

  • Morgan Hillenmeyer

Vice President


T: 1-615-248-5930


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