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125 Dillon Drive — Investment Research Brief

Independent research summary prepared by 125DillonDrive.com. Facts as of 2026-08-23. Not an offering memorandum; not investment advice. The listing brokerage is Pintail (Tom McMeekin, 864-729-4500).

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The asset

±10,000 SF single-story former eye-clinic medical office (a 10,896 SF public-record figure exists) on 1.37 acres (county deed records), built 1985, parcel 7-09-00-001.30, unincorporated Spartanburg County, ZIP 29307. Adjacent to Spartanburg Medical Center – Mary Black Campus (231 beds). Owner of record DILLON MD LLC (since 2021). Condition: mid-renovation — perimeter suites updated, core at studs; county condition rating FAIR.

Terms (listing-supplied, as of 2026-08-23)

Asking $775,000 (~$77.50/SF marketed; below the county's $804,900 appraisal) or lease at $10.00/SF NNN (flyer) with purchase option; owner financing considered; build-to-suit; abandoned-building tax credits marketed as available (eligibility turns on the 66%/5-year vacancy test; request the documentation). ~187 days on market at last verification.

Market evidence in five numbers

• County population: 328,000 base (2020) → 380,857 (2025), +16.1% (Census).
• Education & Health Services employment: +24% in a decade (BLS, Spartanburg MSA).
• Provider scarcity: 1 PCP per 1,610 residents; 1 mental-health provider per 720 vs SC's 460 (2024 CHNA).
• Corridor pricing: vacant analogs ~$77–86/SF (subject ask; 1770 Skylyn ask→sold 12/2025); stabilized asking ~$251/SF (130 Dillon).
• Regional office (all-office scope): 6.1% vacancy, $147.90/SF avg sale, 7.8% cap (Lee & Associates Q2 2026).

Business-case verdicts

• Owner-user medical practice — strongest case. Illustrative ownership cost ≈ $13/SF-yr all-in (incl. $400k renovation) vs $15–22.50/SF market leases. Pivot: renovation budget.
• Behavioral-health outpatient — promising. Official county priority; 720:1 provider ratio; building type fits. First to solve: clinician recruiting.
• Multi-tenant medical — conditional. Break-even ≈ 84–86% occupancy at $13/SF NNN; pre-leasing an anchor is the key step.
• ASC conversion — a specialist project. 1985 wood-frame vs Reg 61-91 physical-plant standards; conversion cost would run a multiple of the building price, so office-based procedure uses fit better.
• Set aside: rehab/PT (already well served on the campus); standalone geriatric clinic (folded into owner-user).

What to verify

Completion budget (core open for build-out); lease-up pace on the corridor; square footage via the county card; tax-credit vacancy documentation; campus capital plans (currently directed elsewhere); comp depth (one closed sale, price undisclosed); owner-financing terms in writing.

First six diligence items

1. Contractor walk-through and completion budget.
2. County property card (settle SF) + permitted-use confirmation with County Planning.
3. Written owner-financing terms; parallel SBA 504 quote.
4. Vacancy-history documentation (credit eligibility).
5. FEMA FIRMette; Phase I environmental; roof/HVAC condition.
6. 1770 Skylyn closed price via deed stamps (true comp).

Full research, sources, and calculators: 125dillondrive.com — /property/, /investment-thesis/, /research/, /business-cases/, /tools/underwriter/, /methodology/.