Bank

Bank of America

795 Main St W, Oak Ridge, TN 37830

Listing Price: $1,500,000

Cap Rate
0.27%
Tenant Name
Bank of America
Years Remaining On Lease
3.7
Gross SF
20,016
Guarantor
No Guarantee
Rentable SF
20,016
Price/Gross SF
$74.94
Lease Type
Triple Net (NNN)
Rent Per Square Feet
$3.41

Investment Overview

The Bank of America building, located at 795 Main Street West in Oak Ridge, Tennessee, is a 20,016-square foot Class B office building. The reinforced concrete office was constructed in 1976 on a 1.30 acre parcel. It enjoys access to Main Street West and Wilson Street. The roof and a cooling unit were replaced in 2019. It is located one block south of the Oak Ridge Turnpike and sits adjacent to the American Museum of Science and Industry. Nearby uses also include Cinemark, Belk, Dick’s Sporting Goods, WalMart, Petsmart, Food City and Oak Ridge High School. The property is zoned B-2 (General Business) by the City of Oak Ridge. It is intended for office uses for professional services, business services, accounting, banking, drafting and graphic arts, community uses among others. Bank of America leases 8,866 square feet of the first floor of the building and has been a tenant since 2007. The original lease was executed on August 31, 2012 and there are 17 five-year extended renewal options available. The tenant must provide 12 months notice of its intent to renew. The lease provides for annual rent increases based on fair market value. Bank of America’s current lease expires on September 30, 2024. Currently, 56 percent of the building is vacant, including the entire second floor. There are 32 parking spaces (1.53/1000 square foot) and a four-lane drive through. The Bank of America lease provides that 28 of the 32 spaces are dedicated to the bank’s exclusive use. As a result, there are only four parking spaces available to serve the remaining 11,150 square feet of vacant office. However, Bank of America is no longer using its drive through tellers. While it would require a lease amendment with the bank, the drive through facilities could be razed to create additional parking. There is also some question that a reciprocal parking agreement with the adjacent retail mall may still be in place, but a title opinion would be required to confirm this. Additionally, the adjacent property is a movie theater, which creates an opportunity to lease spaces from the owner. At its current occupancy of 44 percent, the property has a net operating income of $4,042. Based on leasing the second floor at $14.00 per square foot triple-net, the proforma projects NOI of almost $150,000.

Investment Highlights

  • Bank of America Has Been a Tenant Since 2007 and Current Lease Expires in 2024
  • 17 Renewals - Five Years Available in Each Lease
  • Second Floor is Vacant (Over 10,000 Square Feet) Creating Opportunity for an Owner/User to Obtain Revenue From the Bank's Lease

Exclusively Listed By

Listing Price: $1,500,000

Cap Rate
0.27%
Tenant Name
Bank of America
Years Remaining On Lease
3.7
Gross SF
20,016
Guarantor
No Guarantee
Rentable SF
20,016
Price/Gross SF
$74.94
Lease Type
Triple Net (NNN)
Rent Per Square Feet
$3.41

Investment Highlights

  • Bank of America Has Been a Tenant Since 2007 and Current Lease Expires in 2024
  • 17 Renewals - Five Years Available in Each Lease
  • Second Floor is Vacant (Over 10,000 Square Feet) Creating Opportunity for an Owner/User to Obtain Revenue From the Bank's Lease

Investment Overview

The Bank of America building, located at 795 Main Street West in Oak Ridge, Tennessee, is a 20,016-square foot Class B office building. The reinforced concrete office was constructed in 1976 on a 1.30 acre parcel. It enjoys access to Main Street West and Wilson Street. The roof and a cooling unit were replaced in 2019. It is located one block south of the Oak Ridge Turnpike and sits adjacent to the American Museum of Science and Industry. Nearby uses also include Cinemark, Belk, Dick’s Sporting Goods, WalMart, Petsmart, Food City and Oak Ridge High School. The property is zoned B-2 (General Business) by the City of Oak Ridge. It is intended for office uses for professional services, business services, accounting, banking, drafting and graphic arts, community uses among others. Bank of America leases 8,866 square feet of the first floor of the building and has been a tenant since 2007. The original lease was executed on August 31, 2012 and there are 17 five-year extended renewal options available. The tenant must provide 12 months notice of its intent to renew. The lease provides for annual rent increases based on fair market value. Bank of America’s current lease expires on September 30, 2024. Currently, 56 percent of the building is vacant, including the entire second floor. There are 32 parking spaces (1.53/1000 square foot) and a four-lane drive through. The Bank of America lease provides that 28 of the 32 spaces are dedicated to the bank’s exclusive use. As a result, there are only four parking spaces available to serve the remaining 11,150 square feet of vacant office. However, Bank of America is no longer using its drive through tellers. While it would require a lease amendment with the bank, the drive through facilities could be razed to create additional parking. There is also some question that a reciprocal parking agreement with the adjacent retail mall may still be in place, but a title opinion would be required to confirm this. Additionally, the adjacent property is a movie theater, which creates an opportunity to lease spaces from the owner. At its current occupancy of 44 percent, the property has a net operating income of $4,042. Based on leasing the second floor at $14.00 per square foot triple-net, the proforma projects NOI of almost $150,000.

Exclusively Listed By

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