Security Square
At-A-Glance
Asking Price: $3,050,000 | $138 PSF
Net Operating Income: $207,514 (In-Place) | $244,446 (2027)
Cap Rate: 6.80% (In-Place) | 8.01% (2027)
Opportunity
Signalized Intersection / Hard Corner Location - 100% Leased Daily Needs Shopping Center with Upside Thru Below Market Rents
Highlights
- Security Square is 100% occupied, giving investors a strong in-place cash flow with very favorable upside.
- True Value-Add Opportunity - Rents are 50%~ below market rents ($9.64 PSF In Place vs. $24.00+ PSF Market) with recent leasing activity at $25 PSF and lease comps show strong evidence for continued rental growth. Majority of tenants do not have options to extend allowing the buyer an opportunity to increase rents.
- Below replacement cost at $138 PSF.
- Excellent visibility and accessibility at a strong signalized hard corner along the city’s primary thoroughfare
- Located in Oak Ridge, which is outside of downtown Knoxville, Tennessee. Oak Ridge is home to United States Department of Energy facilities - a national laboratory and a national security complex - and high-tech/high-wage employers. It is also home to a regional medical center.
- Security Square has a healthy variety of diverse local neighborhood serving tenants & businesses
- Landlord friendly/well written triple-net (NNN) leases, whereby the tenant is responsible for paying and/or reimbursing the landlord for the property taxes, insurance, and common area maintenance (CAM).
