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Single-Tenant Office Medical

Pinnacle Treatment Center

300 Carrera Dr, London, KY 40741

Listing Price: $12,150,000

Cap Rate
6.15%
Tenant Name
Pinnacle Treatment Center
Years Remaining On Lease
21.5
Gross SF
29,025
Guarantor
Corporate Guarantee
Rentable SF
29,025
Price/Gross SF
$418.60
Lease Type
Triple Net (NNN)
Rent Per Square Feet
$25.74

Investment Overview

Marcus & Millichap is pleased to present the Pinnacle Treatment Center located in London, Kentucky The 15,900 square foot building was originally built-to-suit construction for Pinnacle in 2017 on five acres in London, KY. The tenant recently underwent a 3,200 square foot expansion completed in August of 2021 and another 9,925sf of expansion is in the works for delivery in February of 2022. The buildings have excellent exposure along Carrera Drive, which runs north and south and intersects with Russell Dyche Memorial Highway, which is a major thoroughfare in London. The highway runs into Interstate 75 less than a quarter-mile from the Pinnacle Treatment Center. This corridor is home to a number of national retailers including McDonald’s, Buffalo Wild Wings, Cracker Barrel, Cheddar’s, Wendy’s, Taco Bell, Waffle House, KFC, White Castle and Arby’s. There are several hotels and motels nearby including Hampton Inn, Fairfield Inn & Suites by Marriott, Motel 6, Econo Lodge, Red Roof Inn and Budget Inn which help drive the daytime traffic in the area. Walmart has a large distribution center also just west of the Pinnacle Treatment Center along the highway. Pinnacle Treatment Center signed an original 20-year lease in 2018. Due to their success and expansions at the location, the tenant agreed to extend their lease to a fresh 20-year period commencing upon the completion of the phase II expansion in April 2022. The lease is considered modified triple net, with very minimal landlord responsibilities and the tenant being directly responsible for all CAM, taxes, and insurance expenses associated with the building including HVAC. Landlord shares in the cost of a new roof, which is currently covered by warranty. There are rare 3 percent annual increases in both the base lease term and in the ten-year renewal option. Pinnacle Treatment Centers provide inpatient and outpatient treatment for those suffering from addiction. Their services include drug-free and medication-assisted treatment, through a network of 130+ facilities across Pennsylvania, New Jersey, Virginia, Indiana, Ohio, Kentucky and California.

Investment Highlights

  • 29,025 Square Foot Freestanding Medical Office Buildings
  • High-Quality Build-to-Suit Construction in 2017 for Pinnacle Treatment Center; Recent 3,200sf Expansion in August 2021 | Second 9,925sf Expansion Planned for February 2022
  • Proven Success at Location| 20+ Years Remaining on Lease
  • Modified Triple Net Lease with Minimal Landlord Responsibilities (Only Shares in Cost of Roof Replacement)
  • Rare 3% Annual Rent Increases in the Base Term & in the Ten-Year Renewal Option
  • Close Proximity to a Large Walmart Distribution Center | Located a Quarter-Mile from Interstate 75 | Several National Retailers and Hotels Nearby Helping to Drive Daytime Traffic to this Area
  • London is Sandwiched between Several Major Markets | 75 Miles from Lexington, KY | 97 Miles from Knoxville, TN | 150 Miles from Louisville, KY
  • Pinnacle has 130+ Locations Across 8 States

Exclusively Listed By

Broker of Record

  • Colby Haugness

    First Vice President Investments

    (513) 878-7733

    License(s) KY: 242197

    Kentucky

Single-Tenant Office Medical

Pinnacle Treatment Center

Listing Price: $12,150,000

Cap Rate
6.15%
Tenant Name
Pinnacle Treatment Center
Years Remaining On Lease
21.5
Gross SF
29,025
Guarantor
Corporate Guarantee
Rentable SF
29,025
Price/Gross SF
$418.60
Lease Type
Triple Net (NNN)
Rent Per Square Feet
$25.74

Investment Highlights

  • 29,025 Square Foot Freestanding Medical Office Buildings
  • High-Quality Build-to-Suit Construction in 2017 for Pinnacle Treatment Center; Recent 3,200sf Expansion in August 2021 | Second 9,925sf Expansion Planned for February 2022
  • Proven Success at Location| 20+ Years Remaining on Lease
  • Modified Triple Net Lease with Minimal Landlord Responsibilities (Only Shares in Cost of Roof Replacement)
  • Rare 3% Annual Rent Increases in the Base Term & in the Ten-Year Renewal Option
  • Close Proximity to a Large Walmart Distribution Center | Located a Quarter-Mile from Interstate 75 | Several National Retailers and Hotels Nearby Helping to Drive Daytime Traffic to this Area
  • London is Sandwiched between Several Major Markets | 75 Miles from Lexington, KY | 97 Miles from Knoxville, TN | 150 Miles from Louisville, KY
  • Pinnacle has 130+ Locations Across 8 States

Investment Overview

Marcus & Millichap is pleased to present the Pinnacle Treatment Center located in London, Kentucky The 15,900 square foot building was originally built-to-suit construction for Pinnacle in 2017 on five acres in London, KY. The tenant recently underwent a 3,200 square foot expansion completed in August of 2021 and another 9,925sf of expansion is in the works for delivery in February of 2022. The buildings have excellent exposure along Carrera Drive, which runs north and south and intersects with Russell Dyche Memorial Highway, which is a major thoroughfare in London. The highway runs into Interstate 75 less than a quarter-mile from the Pinnacle Treatment Center. This corridor is home to a number of national retailers including McDonald’s, Buffalo Wild Wings, Cracker Barrel, Cheddar’s, Wendy’s, Taco Bell, Waffle House, KFC, White Castle and Arby’s. There are several hotels and motels nearby including Hampton Inn, Fairfield Inn & Suites by Marriott, Motel 6, Econo Lodge, Red Roof Inn and Budget Inn which help drive the daytime traffic in the area. Walmart has a large distribution center also just west of the Pinnacle Treatment Center along the highway. Pinnacle Treatment Center signed an original 20-year lease in 2018. Due to their success and expansions at the location, the tenant agreed to extend their lease to a fresh 20-year period commencing upon the completion of the phase II expansion in April 2022. The lease is considered modified triple net, with very minimal landlord responsibilities and the tenant being directly responsible for all CAM, taxes, and insurance expenses associated with the building including HVAC. Landlord shares in the cost of a new roof, which is currently covered by warranty. There are rare 3 percent annual increases in both the base lease term and in the ten-year renewal option. Pinnacle Treatment Centers provide inpatient and outpatient treatment for those suffering from addiction. Their services include drug-free and medication-assisted treatment, through a network of 130+ facilities across Pennsylvania, New Jersey, Virginia, Indiana, Ohio, Kentucky and California.

Exclusively Listed By

Broker of Record

  • Colby Haugness

    First Vice President Investments

    (513) 878-7733

    License(s): KY: 242197

    Kentucky

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