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11400 Outlet Dr - Topgolf 46,678 SF Sports & Entertainment Building Offered at $32,500,000 at a 7.25% Cap Rate in Knoxville, TN 37932



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Investment Highlights
- 11400 Outlet Drive is home to Knoxville’s Topgolf sports and entertainment facility, spanning 48,000 square feet on a 15.73-acre site.
- Long-term Topgolf tenancy with built-in rent escalations and extension options delivers predictable income growth and stability through 2062.
- Frontage and visibility on Interstates 40 and 75, visible to more than 107,760 VPD, with the TN-131 interchange at Exit 374 immediately adjacent.
- Affluent trade area with AHHIs exceeding $145,000 within 1 mile, and the University of Tennessee, 13 miles, generates abundant demand and spending.
- True NNN structure enables tenant responsibility for taxes, insurance, maintenance, repairs, and CapEx, expressly including roof and structure.
- Topgolf invested $20M into the build-out of this purpose-built, first-of-its-kind, two-story prototype in TN - reinforcing long-term commitment.
Executive Summary
Newmark has been exclusively retained to offer for sale the fee-simple interest in the Topgolf located at 11400 Outlet Drive in Knoxville, Tennessee.
The subject property is a two-level, 48,000-square-foot entertainment venue with 72 all-weather hitting bays, a full-service restaurant and bar, a rooftop terrace with fire pits, private event space, a 28-foot video wall, and more than 200 HDTVs, constructed new for Topgolf in 2022 on 15.73 acres.
Topgolf occupies the property under a 20-year absolute NNN lease that commenced August 12, 2022, and runs through August 31, 2042, leaving approximately 16.1 years of term remaining and four five-year renewal options thereafter. Rent increases 10% every five years, both throughout the primary term and across all four option periods, delivering contractual growth that carries a buyer to 2062.
Topgolf International, Inc. guarantees the lease, which is structured as a true absolute net obligation: the tenant is responsible for all taxes, insurance, maintenance, repairs, and capital expenditures, including roof and structure, leaving the landlord with zero ongoing responsibility and no management burden.
Backed by a long-term lease structure with scheduled rent increases and multiple renewal options, this investment offers durable cash flow and built-in revenue growth for decades to come. With contractual income extending well into the future and a nationally recognized tenant in place, investors have an opportunity to acquire a stable, low-management asset positioned for long-term wealth preservation and appreciation.
Contact the listing team today to learn more about this premier net-leased investment opportunity.
The subject property is a two-level, 48,000-square-foot entertainment venue with 72 all-weather hitting bays, a full-service restaurant and bar, a rooftop terrace with fire pits, private event space, a 28-foot video wall, and more than 200 HDTVs, constructed new for Topgolf in 2022 on 15.73 acres.
Topgolf occupies the property under a 20-year absolute NNN lease that commenced August 12, 2022, and runs through August 31, 2042, leaving approximately 16.1 years of term remaining and four five-year renewal options thereafter. Rent increases 10% every five years, both throughout the primary term and across all four option periods, delivering contractual growth that carries a buyer to 2062.
Topgolf International, Inc. guarantees the lease, which is structured as a true absolute net obligation: the tenant is responsible for all taxes, insurance, maintenance, repairs, and capital expenditures, including roof and structure, leaving the landlord with zero ongoing responsibility and no management burden.
Backed by a long-term lease structure with scheduled rent increases and multiple renewal options, this investment offers durable cash flow and built-in revenue growth for decades to come. With contractual income extending well into the future and a nationally recognized tenant in place, investors have an opportunity to acquire a stable, low-management asset positioned for long-term wealth preservation and appreciation.
Contact the listing team today to learn more about this premier net-leased investment opportunity.
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Property Facts
| Price | $32,500,000 | Building Class | B |
| Price Per SF | $696.26 | Lot Size | 15.73 AC |
| Sale Type | Investment | Building Size | 46,678 SF |
| Cap Rate | 7.25% | No. Stories | 2 |
| Property Type | Sports & Entertainment | Year Built | 2022 |
| Property Subtype | Golf Course/Driving Range | Parking Ratio | 7.46/1,000 SF |
| Zoning | C2 - General Commercial | Town of Farragut/ Knox County | ||
| Price | $32,500,000 |
| Price Per SF | $696.26 |
| Sale Type | Investment |
| Cap Rate | 7.25% |
| Property Type | Sports & Entertainment |
| Property Subtype | Golf Course/Driving Range |
| Building Class | B |
| Lot Size | 15.73 AC |
| Building Size | 46,678 SF |
| No. Stories | 2 |
| Year Built | 2022 |
| Parking Ratio | 7.46/1,000 SF |
| Zoning | C2 - General Commercial | Town of Farragut/ Knox County |
Somewhat walkable
30/100
Exceptionally drivable
100/100
Nearby Amenities
Retail |
||
|---|---|---|
| Tennessee Soft Wash | Automotive | 11 min walk |
| Turkey Creek Public Market | Supermarket | 13 min walk |
| Dale Supply Co | Home Improvement | 15 min walk |
| CrossFit | Fitness | 16 min walk |
| Marathon | Gasoline Station | 16 min walk |
Hotels |
|
|---|---|
| Comfort Suites |
85 rooms
4 min drive
|
| Sleep Inn |
98 rooms
5 min drive
|
| Econo Lodge |
75 rooms
5 min drive
|
| SpringHill Suites |
103 rooms
7 min drive
|
| Sonesta Simply Suites |
98 rooms
9 min drive
|
| Hilton Garden Inn |
118 rooms
10 min drive
|
| OYO |
84 rooms
10 min drive
|
| Courtyard |
78 rooms
11 min drive
|
| Extended Stay America Suites |
72 rooms
13 min drive
|
| Fairfield Inn |
77 rooms
14 min drive
|
Property Taxes
| Parcel Number | 130-15406 | Improvements Assessment | $0 |
| Land Assessment | $0 | Total Assessment | $9,590,560 |
Property Taxes
Parcel Number
130-15406
Land Assessment
$0
Improvements Assessment
$0
Total Assessment
$9,590,560
Sale Advisors
Matt Berres, Vice Chairman
Matt Berres is an Executive Managing Director with Newmark’s Net Lease Capital Markets group, a select team of Capital Markets professionals who specialize in the sale, purchase and recapitalization of net leased retail, industrial and office properties throughout the United States. Newmark’s Net Lease Practice group offers an array of core services, including net lease disposition and acquisition advisory, 1031 exchange transactions, sale-leasebacks, portfolio analysis, valuation analysis, market and demographic evaluation, build-to-suit and capital markets consultation. Berres brings to Newmark more than 12 years of expertise in single-tenant deals. A top producer nationally, Berres has closed more than 300 sales transactions valued in excess of $2.5 billion for pension fund advisors, REITs, developers, private high net worth, 1031 exchange and foreign Investors. These transactions include the Walgreens corporate headquarters, Kroger Net Lease Grocer Portfolio, Federal Express warehouse buildings, more than 150 bank branch facilities, Top Golf locations, Veterans Affairs/GSA facilities and mission-critical office assets. Prior to joining Newmark in 2019, Berres was a Managing Director with Jones Lang LaSalle’s Net Lease Property Group, where he assisted clients in the acquisition and disposition of single tenant investments throughout the country. From 2015 to 2018, he was JLL’s No. 1 ranked producer nationwide. Prior to his career in commercial real estate, Berres played professional golf on various professional golf mini-tours around the country, including the Gateway Tour, US Pro Golf Tour, Pepsi Tour, Dakotas Tour and Nationwide Tour. Berres is President of Young Real Estate Professionals (YREP) and an active member of the Wisconsin Real Estate Alumni Association, International Council of Shopping Centers (ICSC), ICSC Next Generation, Urban Land Institute (ULI) and ULI Young Leaders. He earned a Bachelor of Arts degree in finance, investments and banking from the University of Wisconsin-Madison. Berres is active in the Orange County community, serving in various non-profit organizations, and in his church. He also enjoys competing in amateur golf tournaments, beach volleyball, surfing, and spending time with his wife, Brittany, daughter, Olivia and son Luca.
Karick Brown, Associate Director
Karick Brown specializes in the sale, purchase, and recapitalization of net leased retail, industrial, and office properties throughout the United States. The Net Lease Capital Markets group's services include: Net Lease Disposition & Acquisition Advisory, 1031 Exchange Transactions, Sale-Leasebacks, Portfolio Analysis, Valuation Analysis, Market & Demographic Evaluation, Build-to-Suit and Capital Markets Consultation. Brown joined Newmark in 2019 as an Associate for the Net Lease Capital Markets group. Brown assists in the identification, evaluation, marketing and negotiation of single tenant net lease investment properties across various asset types including retail, industrial, office, and medical office. Prior to joining Newmark, Brown worked as an analyst for Faris Lee Investments. In this role he provided valuation analysis of retail, office, and senior housing properties. Valuation assignments were prepared on proposed, partially completed and existing structure. Total consideration exceeded $650 Million. Brown also previously worked at HFF, focusing on debt/equity structures for institutional investors. Brown is an active member in the Orange County community, serving in various non-profit organizations, and in his church. He is an avid golfer and maintains a scratch handicap, regularly competing in U.S. Open Q School events. Brown enjoys tennis, golf, surfing, snow skiing and recently has adopted Pickleball.
Samer Khalil, Managing Director
Joining Matt Berres as a Director with Newmark’s Net Lease Capital Markets in 2019, Samer Khalil focuses exclusively on the sale, purchase, and recapitalization of net leased retail, industrial, and office properties throughout the United States. With 7+ years of expertise in single-tenant and anchored and strip shopping center deals, Khalil has had direct involvement in transactions valued in excess of $1.25 billion for clients including REITS, Developers, Private High Net Worth, 1031 Exchange and Foreign Investors. Khalil is active in his church and local community. He also enjoys spending time with family (wife, Kelsey, daughters Sage, Oakley & Lennon, and son Kolsen), exploring local beaches and parks, and playing basketball.
Bert Sanders, Vice Chairman
Bert Sanders joined Newmark in 2002 as Managing Principal and has assisted the company in its ongoing national expansion. Mr. Sanders has more than 35 years of experience in the commercial real estate industry. He specializes in complex real estate structures in the industrial and office asset class. His areas of focus include tenant representation, investment sales, build-to-suit, debt/equity placement, financing/sale leaseback, municipal incentives and long-term strategic planning. Mr. Sanders is a member of Newmark’s Industrial Advisory Group (IAG), and Newmark’s Global Corporate Services (GCS).
Mr. Sanders has completed transactions in the majority of all major U.S. cities and has represented various clients with multiple locations at the regional and national level. He has completed more than 12 million square feet of build-to-suit/anchor tenant lease transactions.
Mr. Sanders has completed transactions in the majority of all major U.S. cities and has represented various clients with multiple locations at the regional and national level. He has completed more than 12 million square feet of build-to-suit/anchor tenant lease transactions.
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