Address: 9314 Lee Highway,, Ooltewah, Tennessee, United States 37363
Type: Net Leased Auto Service
Cap Rate: 5.00%
Lease Type: Triple-Net (NNN) Ground Lease
Annual Rent: $63,000
Net Operating Income: $63,000
Lease Term Remaining: 10.5 Years
Rental Increases: 10% Increase in 2025 and Every Five Years Thereafter
Options: Five (5), Five (5)-Year Options
Rentable Sq/Ft: 7,147 SF
Rent Sq/Ft: $8.81
Price Sq/Ft: $176
Lot Size: 0.86 Acres
Marcus & Millichap is pleased to present the exclusive listing for the AutoZone located at 9314 Lee Highway in Ooltewah, TN. The property consists of roughly 7,147 rentable square feet of building space on a 0.86 acre parcel of land.
The AutoZone is subject to a 15-Year Triple-Net (NNN) ground lease that commenced on September 1, 2015 and expires on October 31, 2030. The current rent is $63,000 and will increase by 10.00% every 5 years starting in year 11 of the lease. In addition to the primary term, there are five (5), five (5)-year tenant renewal options.
This Chase Bank is located at 9314 Lee Highway and just under six miles from the Chattanooga Volkswagen Production and Assembly Plant. The Volkswagen Plant is approximately 1,900,000 square feet sitting on just over a 1,400 acre parcel of land. Formally known as “Enterprise South Industrial Park”, over 2,000 employees work full time, in addition to other engineers and site staff. Located east of the Tennessee River, Ooltewah was rated one of the best MSAs to live in throughout Tennessee, with over 168,200 people residing within a 10-mile radius of the investment property to be specific.
The subject property is well-positioned in an extremely dense commercial corridor, benefitting from its proximity to major national retailers, massive shopping centers, dozens of hotels, and various points of interest. Major national retailers in the area include: Walmart, Chick-fil-A, Walgreens, McDonald’s, Starbucks, Burger King, Aldi, BB&T Bank, Taco Bell, Arby’s, BP, 7-Eleven, Dunkin’ Donuts, Waffle House, Pizza Hut, Sonic, and so many more. Hospitality accommodations within immediate proximity to this investment property include | Holiday Inn Express & Suites, Hampton Inn, SpringHill Suites, Courtyard, Super 8, Windgate, Fairfield Inn & Suites, Residence Inn, Embassy Suites, Best Western, and many more. The Chattanooga Volkswagen Production and Assembly Plant. The plant opened in 2008 and is just over 5 miles south, down I-75, from the investment AutoZone property. The 1,900,000 square foot, Enterprise South Industrial Park, employs over 2,000 and has continued to be a lucrative driver in the economy of the retail corridor shared by that of the subject investment property since.
Ooltewah is a fast-growing northern suburb of Chattanooga, about 25 minutes from downtown Chattanooga, and located in Hamilton County, Tennessee. Chattanooga is a city located along the Tennessee River near the southeastern corner of Tennessee. With an estimated population of 179,139 in 2017, it is the fourth-largest city in Tennessee and one of the two principal cities of East Tennessee, along with Knoxville. Served by multiple railroads and Interstate highways, Chattanooga is a transit hub. Chattanooga lies 120 miles northwest of Atlanta, Georgia; 120 miles southwest of Knoxville, Tennessee; 135 miles southeast of Nashville, Tennessee; 120 miles northeast of Huntsville, Alabama; and 148 miles northeast of Birmingham, Alabama. The city, with a downtown elevation of approximately 680 feet, lies at the transition between the ridge-and-valley portion of the Appalachian Mountains and the Cumberland Plateau. Surrounded by mountains and ridges, the official nickname for Chattanooga is the Scenic City, reinforced by the city’s reputation for outdoor activities. Its trolleylike Incline Railway scales steep Lookout Mountain before reaching Ruby Falls waterfall and Rock City, featuring sweeping views, sandstone formations and gardens. Point Park, also atop Lookout, marks the site of a Civil War battle now honored at the Battles for Chattanooga Museum.
Broker of Record: Jody McKibben License #: 307629