Marcus & Millichap Closes $24.5 Million Medical Office Sale in Germantown, Tennessee

Marcus & Millichap (NYSE: MMI) has closed the sale of The Conrad Pearson Clinic, a 33,777-square-foot medical office building located at 1325 Wolf Park Drive in Germantown, Tennessee, for $24.5 million. The transaction, announced Aug. 25, 2026, equates to approximately $725 per square foot for the fully leased, purpose-built facility.

Property and Transaction Details

Built in 2002 and situated on approximately 4.59 acres, the Class B medical office building was designed and constructed by the Conrad Pearson Clinic to integrate its clinical and surgical operations under one roof. The Wolf River Surgery Center also operates from the building at 1325 Wolf Park Drive, occupying a separate suite. The asset was 100% leased at the time of sale.

Spencer Koch, senior director investments with Marcus & Millichap, and Chris Biuso of the Koch Biuso Group represented the seller and procured the buyer. Jody McKibben, Marcus & Millichap's broker of record in Tennessee, was also involved in the transaction.

"The building was designed and constructed by the Conrad Pearson Clinic to accommodate their specific needs and provide a streamlined connection between their clinical and surgical practices," Koch said in a statement. "The Koch Biuso Group of Marcus & Millichap continues to build on its success with physician clients, delivering trusted guidance and tailored solutions that help physicians achieve their financial and professional goals."

The $24.5 million closing price represents a discount from earlier marketing guidance, which had listed an asking price of $28 million, or approximately $829 per square foot, with a marketed cap rate of 6.23% and a net operating income of $1,743,669. The final sale price of $24.5 million implies a price per square foot of roughly $725.

Location and Healthcare Cluster

The property sits on Wolf Park Drive, just off Wolf River Road, a key east–west artery in Germantown that sees more than 29,000 vehicles per day. U.S. Route 72, Interstate 240, and Interstate 55 are nearby, and Downtown Memphis is within a short drive. The Wolf River/Wolf Park corridor functions as a dense medical submarket southeast of Downtown Memphis.

Methodist Le Bonheur Germantown Hospital, one of the area's largest employers, is located close to the property. Saint Francis Medical Partners Germantown and Baptist Memorial Rehabilitation Hospital are also in the immediate area.

"With 88,725 employees and 13% of the region's workforce, healthcare and life sciences are one of the largest industry clusters in Greater Memphis," Biuso said.

Physician-Focused Advisory Strategy

The Koch Biuso Group has positioned itself as a specialist in working with physician-owner clients. The clinic-plus-surgery-center configuration at 1325 Wolf Park Drive — designed to support high-acuity outpatient procedures — represents a format that has attracted sustained investor interest as healthcare providers continue shifting services from inpatient to outpatient settings.

About Marcus & Millichap

Marcus & Millichap is a commercial real estate brokerage firm specializing in investment sales, financing, research, and advisory services. As of Dec. 31, 2025, the company had 1,808 investment sales and financing professionals in more than 80 offices across the United States and Canada. The firm closed 8,818 transactions in 2025 with a total sales volume of approximately $50.9 billion.

Sources: Marcus & Millichap Press Release, Aug. 25, 2026