Marcus & Millichap is pleased to present for sale this AdaptHealth single tenant net leased medical property located at 1114 W. First St, Morristown, Tennessee. The subject property consists of 8,012 square feet of gross leasable area on a 1.39 acre parcel of land. The tenant, AdaptHealth (NASDAQ: AHCO) has recently signed a 5-year lease extension with a corporate guarantee.
AdaptHealth is a full-service home medical equipment company that uses tailored products and services to empower patients to live their fullest lives – out of the hospital and in their homes. Morristown Hamblen Healthcare System, a regional hospital and medical complex is two blocks away from the property, providing a highly reliable and consistent source of business for the tenant. On a corporate level AdaptHealth has experienced a significant increase in revenue since the COVID-19 pandemic hit, providing valuable support throughout the public health crisis.
The double net lease has minimal landlord responsibilities, limited to roof and structure. The tenant has been occupying the property since 2019. In November 2021, they initiated an early lease extension for an additional 5-years (ending 12/31/2026), with one 5-year renewal option. The current rent, less than $9 per square foot, is well below market pricing.
Strategically located on Route 11 (Andrew Johnson Hwy) gateway to the regional medical center and primary retail corridor, the property benefits from street frontage visible to average daily traffic counts of 13,026. National tenants in the immediate trade area include Home Depot, Chick-fil-A, Lowes, CVS, Ford, and many more. The population is over 46,000 within a 5-mile radius, with positive growth forecasted over the next 5-years. Strong population growth of 4.25 percent is projected within a 3-mile radius of the subject property within the next 5-years. The landlords have recently had the driveway resealed and the building power washed, to further elevate future responsibilities.
Morristown is a City in Tennessee at the midpoint between Knoxville and the Tri-Cities region. Nearby on Main Street in Morristown is the Skymart, a major redevelopment project turning downtown into a social and commercial hub. Tennessee is an income tax-free state.
AdaptHealth Corporate Guarantee (NASDAQ: AHCO)
AdaptHealth is a Leading Provider of Health Equipment and Medical Supplies Operating in 41 States with $1.4 Billion Annual Revenue
Morristown Hamblen Healthcare System (Hospital & Medical Complex) is Two Blocks Away
Double Net Lease – Minimal Landlord Responsibilities
Below Market Rent for Corporate Tenants (Current Rent is 50% Below Market Price)
Strong Upside on Short Term Leases
Strong Demographics with 46K Population and $61K+ Avg Household Income in a 5-Mile Radius
Visible to 13,026 Vehicles Per Day
Adjacent to Pharmacy & Bank
National Tenants in Immediate Trade Area Include Home Depot, Lowe’s, DaVita, Chick-fil-A, & More
Situated on W Andrew Johnson Highway a Dense Retail Corridor with 50K+ VPD within 1-Mile
High 5-Year Population Growth Forecast of 4.25% within a 3-Mile Radius
AdaptHealth | Corporate Guarantee | Below Market Rent for Corporate Tenants - 1114 W 1st N St, Morristown, TN 37814, USA
