Thank you for sharing!

Your article was successfully shared with the contacts you provided.

OOLTEWAH, TN-Marcus & Millichap Real Estate Investment Services has arranged the local sale of a single-tenant net leased BB&T bank branch. The $1.5-million transaction represents a 6.5% cap rate on existing income, and the branch is subject to a new 20-year triple-net ground lease with structured rent increases of 12.5% every five years.

Mark Taylor and Dean Zang of Marcus & Millichap’s Philadelphia office represented the seller, GVH Duff Associates, while Stanton Falk of its Cincinnati office represented the 1031 exchange buyer, Arden Square LLC. The asset had been on the market since June 2008 and the listing had expired by the time the deal was made. Ooltewah is located along Interstate 75 northeast of Chattanooga.

“Challenging market conditions have reduced the number of 1031 buyers in the marketplace by about 75% from the fourth quarter of 2008 to the first quarter of 2009,” Taylor says. “Regrettably, many of the offers received were above a 6.75% capitalization rate from non-1031 buyers.”

Right after the expiration, the listing team in Philadelphia received an e-mail from the Cincinnati office specifically seeking branches of Winston-Salem, NC-based BB&T Corp. A letter of intent was executed in a few days, which Taylor credits to Marcus & Millichap’s national marketing platform.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.