1645 Downtown West Blvd
Knoxville, TN 37919

Marcus & Millichap is pleased to present a single-tenant government office building occupied by the United States Veteran’s Affair (VA) - Mental Health Services. The property is located in the highly desirable Downtown West Shopping Center which consists of multiple individually owned suites strategically located in a major retail corridor. The VA is a single-story 4,500-square foot office condominium located on Downtown West Boulevard just south of highway 40 and highway 11. The property was completely renovated to the specification of the Department of Veterans Affair with over $280,000 of construction build-outs and security system upgrades. The GSA signed a brand new 10-year lease in July 2018 with 5 years firm term which is set to expire in 2023. The Veterans Affair (VA) – Mental Health is a division of the VA which focuses on recovery from mental health challenges or substance use issues to empower Veterans to take charge of their treatment and live a full and meaningful life. This approach focuses on the Veteran’s strengths offering respect, honor, and hope to Veterans and the family members who support them. For the U.S. Department of Veterans Affairs, nothing is more important than supporting the health and well-being of the Nation’s Veterans and their families. A major part of that support is providing timely access to high-quality, evidence-based mental health care. VA aims to address Veterans’ needs, during Service members’ reintegration into civilian life and beyond. VA is moving closer to where Veterans live by adding more rural area, mobile clinics, and working with other healthcare providers in the community. This offering is ideal for an investor who is looking for a single credit tenant building occupied by the United States Government with a high going-in capitalization rate of 7.62% with increases which will give them a 8.68% capitalization rate after the firm term of the lease in 2023. This asset has a 8.21% blended capitalization rate for an investor over the remainder term of the lease.