Brown Gibbons Lang & Company | Real Estate Partners has been retained by ownership to offer qualified investors the exceptional opportunity to acquire the Arkansas Nephrology Medical Building (the “Property” or “Building”). The Property, totaling approximately 44,903 rentable square feet, is located in Hot Springs, Arkansas where the newly built state-of-the-art Building provides exceptional patient access and convenience from Central Avenue and Wrights Street. The Building is ideally located less than one (1) mile from the 309-bed CHI St. Vincent Hot Springs hospital and three (3) miles from National Park Medical Center, where the physicians of Arkansas Renal Group (ARG) have practicing privileges. CHI St. Vincent Hot Springs hospital had discharges of nearly 12,000 patients in 2015 and is the dominant provider in the area with greater than 50% market share.
The Property is 100% leased and occupied and generates a projected in-place net operating income of $718,448 with fixed annual rent escalations. This is a unique opportunity to acquire a physician-owned building that was thoughtfully designed and built for the existing practice groups, which consists of Arkansas Renal Group and DaVita Healthcare Partners. Upon closing, the Seller entity will enter into a new 12-year master-lease for the Building, which has an underlying weighted average remaining lease term of 6.6 years.
Completed in 2009, the Building was designed and built for Arkansas Renal Group to serve as their flagship location. The first floor of the Building is utilized for dialysis and procedures and the second floor is used for clinical and administrative purposes. The Building is equipped with twenty-eight (28) dialysis stations on the ground floor with over 120 regular patients. The Arkansas Nephrology Medical Building is only one of two locations in Arkansas that offers a Vascular Access Center, which makes the Building a very important location within the region and service area. The primary tenant, Arkansas Renal Group, has a strong regional presence with nine (9) locations in southwest Arkansas making it the dominant practice group for the area.
Opportunity Highlights
- 100% leased medical office building that is occupied by a dominant physician-owned nephrology group and DaVita (NYSE: DVA)
- Seller will execute a new 12-year Master Lease that will commence at closing providing a Year-1 NOI of $718,448 with 2% fixed annual rental escalations
- The fee-simple Property will be delivered free and clear of any debt
- Newly built in 2009, the Property is the flagship location for Arkansas Renal Group and DaVita, which occupies the 37% of the Building
- Conveniently located between CHI St. Vincent Hot Springs hospital and National Park Medical Center where the physicians have admitting privileges
More Information
Call for Offers Date: Wednesday, June 15th 2016
Submit questions and offers to: Allen Inman | ainman@bglco.com
Contact Information
Christopher L. Stai, CPA | Managing Director
BROWN GIBBONS LANG | Real Estate Partners
Direct: 949.936.2665 | cstai@bglco.com
Clinton J. Parker | Managing Director
BROWN GIBBONS LANG | Real Estate Partners
Direct: 210.352.5832 | cparker@bglco.com
Andrew R. Larwood | Associate Director
BROWN GIBBONS LANG | Real Estate Partners
Direct: 312.658.4756 | alarwood@bglco.com
Allen C. Inman | Associate Director
BROWN GIBBONS LANG | Real Estate Partners
Direct: 312.658.4754 | ainman@bglco.com
Jennifer Stein | Senior Real Estate Advisor
BROWN GIBBONS LANG | Real Estate Partners
AR RE Broker PB00076638
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