Stan Johnson Company, one of commercial real estate’s leading investment sales brokerage firms, has completed the sale of a 59,748-square-foot single-tenant call center leased to CVS Pharmacy. The property is located at 2401 Cherahala Boulevard in Knoxville, Tennessee. Jonathan Ameen and Jeff Hughes of Stan Johnson Company, in association with John M. Adams III of Avison Young, represented the seller, Lexington Realty Trust, a New York-based institutional investor. The asset was purchased for $9.9 million by Concord Capital LLC, a group of private investors based in Jackson, Mississippi.
“In today’s environment, private investors are especially seeking reliable tenants and strong real estate fundamentals,” said Ameen, Associate Director in Stan Johnson Company’s Tulsa, Oklahoma office. “This offering presented the buyer with an opportunity to acquire an asset with a best-in-class tenant and established operating history in a growing submarket of Knoxville. Additionally, the sale allowed Lexington Realty Trust to execute on their strategy of creating a predominantly industrial-focused net lease portfolio. Considering the headwinds facing this industry at the time of sale, completing a successful transaction is something each party can be proud of.”
The mission-critical facility is CVS Caremark’s second largest call center location in the U.S., and the tenant has occupied the property since it was built in 2002. It is located on 9.6 acres in one of East Tennessee’s premier business parks, the Pellissippi Corporate Center, and area tenants include ADT Security, FedEx, and Oak Ridge National Laboratory, among others. At the time of sale, there were approximately seven years left on the double net lease.