Description

I am pleased to present a package offering featuring the three-unit Andrew Johnson Center at 2181 W Andrew Johnson Highway and a two-unit building at 2217 W Andrew Johnson Highway in Morristown. The Andrew Johnson Center is a leasehold property with the ground lease in place through 2047 at $4,235 per month ($50,820 annually), increasing 10% annually, with the landlord responsible for roof and structure while other expenses are reimbursed through CAM. The center is anchored by Foundever (formerly Sykes), leasing 46,000 square feet at $28,700 per month ($345,000 annually) through March 31, 2026, with two 63-month extension options and $6,708 monthly CAM. Rent-A-Center occupies 4,800 square feet at $4,800 per month ($57,600 annually) through January 31, 2028, with a five-year option and a 10% rent increase during the option period, and $260 monthly CAM. Summit Karate leases 6,000 square feet at $4,000 per month ($48,000 annually) through December 20, 2029, with 6% annual rent increases. Outparcels include Chick-fil-A, paying $5,307.71 monthly ($63,620.52 annually) with the current option expiring November 30, 2027, followed by four additional five-year options with 9.3% increases at each renewal, and Taco Bell, whose lease runs through March 31, 2033, at $661.50 per month ($7,938 annually) after rebuilding and leasing a smaller land area. The Andrew Johnson Center generates total annual income of $522,158.52. The adjacent two-unit building at 2217 W Andrew Johnson Highway is a fee simple asset. PPG Industries leases 4,000 square feet at $3,400 per month ($40,800 annually) through February 28, 2025, with a renewal option from March 1, 2025, through February 28, 2030, at $4,000 per month ($48,000 annually). Edward Jones occupies 2,000 square feet at $1,666.67 per month ($20,000.04 annually) under a lease running from November 1, 2024, through October 31, 2029, with 3% annual increases. This building produces total annual income of $60,800.04. Offered together as a $6,000,000 package, these properties are located along W Andrew Johnson Highway, which sees traffic counts exceeding 36,000 vehicles per day, in Morristown—the county seat of Hamblen County with a population of more than 30,000 in Northeast Tennessee—making this a strong, income-producing investment opportunity.