Mar 31, 2022

Blue West Capital Arranges Cap Rate Record Sale of Single Tenant Valvoline in Tennessee

DANDRIDGE, TN – [March 31, 2022] – Blue West Capital has completed the sale of a single tenant net leased Valvoline Instant Oil Change property located at 894 TN-92 South, Dandridge, TN for $1,361,111. The property sold for the lowest cap rate ever recorded in Tennessee for a single-tenant lube center property, according to CoStar. Blue West Capital also sold a Valvoline in Knoxville in December 2021 that previously had traded for the lowest cap rate ever recorded in Tennessee 

Zach Wright and Brandon Wright of Blue West Capital exclusively represented the seller in the transaction. The seller was a private investor based in Knoxville and the purchaser was a Florida-based investor. 

The Valvoline property is strategically located along Tennessee Route 92 and just south of Interstate 40. Retailers in the surrounding area include Food City, Starbucks, O’Reilly Auto Parts, Dollar General, Goodwill, Sonic, BB&T, and many others. The Valvoline is situated on a large 1.42-acre parcel at the corner of Old Jefferson City Hwy and TN-92. 

Valvoline recently signed a new 10-year lease that commenced in June 2021. The corporate lease features no landlord responsibilities and annual rental increases. Valvoline is a publicly traded company (NYSE: VVV) with a market capitalization of $5.7 billion. 

“Single tenant properties leased to strong corporate tenants with annual rental increases, no landlord responsibilities, and low price points are difficult to find and in high demand. We received significant interest and numerous offers early in the marketing process resulting in the record sale,” stated Zach Wright, Director & Partner. 

“The demand for automotive investment properties remains very high. These properties offer investors unique and attractive depreciation benefits while also possessing a service-based use. We’ve sold numerous automotive related properties over the past few months, and many have sold for record prices,” added Brandon Wright, Associate. 


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