The Boulder Group has completed the sale of a single tenant Erlanger Health medical office building at 60 Erlanger South Dr. in Ringgold for $2,050,000.
Zach Wright and Brandon Wright represented the seller and purchaser in the transaction. The seller was a Midwest-based healthcare real estate investment company, and the purchaser was an all-cash 1031 exchange investor based in Georgia.
The property quickly sold within 57 days of the listing agreement being signed.
The 7,955 square foot building is leased to Erlanger Health System, a non-profit hospital system founded in 1889 that has an investment grade credit rating (Moody’s: Baa2). The property serves as a primary care physicians office and the tenant recently executed a new 10-year lease extension evidencing their commitment to the property. The lease features annual rental increases and minimal landlord responsibilities.
The surrounding area includes numerous medical properties, many of which have been recently constructed, creating strong synergies. The property is along Battlefield Parkway (State Route 2), the primary thoroughfare in the area (20,000 VPD), with good visibility and is about two miles west of Interstate 75.
“Well-located MOB properties with long-term leases, investment grade tenants, and annual rental increases are highly sought after amongst net lease investors,” said Mr. Wright, vice president.
“Our marketing process quickly generated several offers, and we were able to come to terms with a local all-cash 1031 exchange investor. Lower price point medical deals, such as this, are difficult to find,” said Mr. Wright, associate.