Passive investment opportunity with well established tenant. Landlord is solely responsible for property taxes and property insurance. Tenant is responsible for all maintenance, landscaping, waste management, utilities, etc.
Current Landlord purchased the vacant 2,800 SF property and underwent a detailed renovation during the Spring of 2017. Upon completion, a nursing school, Diamond Heart Healthcare Learning Institute, signed a 3-year lease that started in August 2017. The school proceeded to exercise a 3-year lease extension less than 1.5 years into the initial lease, leaving over 4 years remaining on the current lease term. The tenant’s business is perfectly suited for the property due to it’s convenient location within close proximity to the Southern Regional Medical Center. Both the success of the tenant (as evidenced by the quick execution of the renewal option) along with the synergistic location for this particular business use provides the new owner with the leverage to include an annual rent escalator and/or off-load the responsibility for property taxes and property insurance onto the tenant during lease negotiations once the current extension comes up for renewal in 2023. Doing so would add additional cash flow to the bottom-line and also significantly add to its resale value by making it fully NNN and therefore entirely passive.
Furthermore, the current renovation was well-done and the space boasts an extremely versatile layout which will attract a wide variety of potential users should the current tenant ultimately decide to vacate.
Looking to buy or sell commercial real estate in Atlanta and the surrounding areas? Give us a call TODAY at 404-618-0878.