U.S. Department of Veterans Affairs CBOC 160 Nautilus Dr 17,000 SF Office Building Hazard, KY 41701 $6,800,000 ($400/SF) 7.73% Cap Rate

The Ficke Team of Colliers is pleased to present to qualified investors the opportunity to acquire the Department of Veterans Affairs facility located at 160 Nautilus Dr in Hazard, Kentucky.? This 2026 build-to-suit development was designed specifically to meet the U.?S.? Department of Veterans Affairs’ rigorous specifications.? The first-generation lease includes a 10-year term, providing long-term, stable cash flow backed by an investment-grade federal tenant (S&P: AA+).? The VA has invested substantial up-front capital into this mission-critical facility, ensuring the delivery of high-quality healthcare to the growing veteran population in northeast Kentucky.?
The Hazard VA Clinic serves as the sole VA medical facility within a significant geographic radius of eastern Kentucky’s Appalachian region, with the next closest clinic located approximately 90 miles away in Morehead, Kentucky - a nearly two-hour drive each way.? Given this substantial distance, the facility serves as the primary access point for Perry County’s 1,143 veterans and the broader veteran population across the surrounding rural counties of eastern Kentucky, part of the state’s 235,118 total veteran population.?
In 2022, 35.0% of Kentucky veterans reported having a disability, compared with 20.6% of the nonveteran population (USA Facts).? This underscores the continued need for accessible and comprehensive healthcare facilities such as the new Hazard VA Clinic.? The facility will provide a wide range of medical services, including primary care, behavioral health, women’s health, and laboratory services.? Replacing a 19-year well-established clinic, it significantly expands the VA’s regional footprint and incorporates the latest federal standards for energy efficiency, sustainability, and accessibility.?
As of Fiscal Year 2025, the U.?S.? Department of Veterans Affairs is operating under a proposed budget of $369.3 billion, a 10% increase over FY 2024, supporting critical improvements to VA medical infrastructure and services for veterans, caregivers, and their families.?