Knoxville CVS Call Center Trades for $10M

Lexington Realty Trust is the former owner of the roughly 60,000-square-foot building.
2401 Cherahala Blvd.

Lexington Realty Trust has sold a 59,748-square-foot, single-tenant building in Knoxville, Tenn., leased to CVS Pharmacy. A group of private investors based in Jackson, Miss., acquired the asset for $9.9 million. According to Yardi Matrix data, Lexington purchased the property in 2002, for $8 million.

The tenant has occupied the building since it was built 18 years ago. The property is CVS Caremark’s second largest call center location in the U.S. and, at the time of sale, there were approximately seven years left on the double net lease.

Located at 2401 Cherahala Blvd. on 9.6 acres, the property is 5 miles from Interstate 40. The asset is part of the Pellissippi Corporate Center, which includes tenants such as ADT Security, FedEx, and Oak Ridge National Laboratory, among others. Downtown Knoxville is 15 miles away.

Associate Director Jonathan Ameen and Managing Director Jeff Hughes of Stan Johnson Co., in association with Principal John Adams III of Avison Young, acted on behalf of Lexington. This month, another Stan Johnson team represented the seller of two freestanding big-box Walmart Supercenters in the Midwest.