Brown Gibbons Lang & Company | Real Estate Partners has been retained by ownership to offer qualified investors the exceptional opportunity to acquire Upper Peninsula Medical Center (the “Property”, “Building”, or “UPMC”). The Property, totaling approximately 229,572 rentable square feet, is well located in Marquette, Michigan adjacent to Northern Michigan University and less than one mile from Upper Peninsula Health System – Marquette (“UPHS”), a 307-bed, federally designated Regional Referral Center and Level II Trauma Center. UPHS is a part of Duke LifePoint Healthcare, a joint venture of Duke University Health System (Moody’s rated “Aa2”), one of the country’s leading academic health systems, and LifePoint Health, a leading healthcare company.
The Building was originally constructed in 1965 and has since undergone four expansions to accommodate Marquette’s increasing need for outpatient healthcare services. The Property is currently 86% occupied with approximately 120 physicians representing over forty (40) medical specialties including hematology, oncology, urology, orthopaedics, OB/GYN, nephrology, ophthalmology, cardiology, radiology, pharmacy, home nursing service, and hospice service, as well as two (2) outpatient surgery centers, one for endoscopic procedures and the other for general surgery. Upper Peninsula Health System currently occupies 46% of the Property while independent physician practice groups make up the balance.
The investment has a projected year-one net operating income of $2,603,566 with annual escalations that are equivalent to the increase in operating expenses. This is a unique opportunity to acquire a destination location facility with a history of dependable patient referral patterns within the Building and with UPHS. In addition, the various specialties within UPMC benefit from the largest concentration of primary care doctors in the Upper Peninsula providing patients with the convenience of a single location for a multitude of services but also increased patient volume within the Property.
Opportunity Highlights
- 229,572 RSF multi-tenant medical center with over forty (40) established multi-specialty physician groups.
- 86% Leased with a Year-1 NOI of $2,603,566 with annual escalations.
- The Property is a destination medical center with over 500,000 patient visits per year.
- Multiple practices have Certificate of Need licenses which makes it more difficult to build new, potentially competing facilities.
- Over forty (40) medical specialties are offered at the Building which provides a strong referral network within the Building and with the hospital, UPHS.
- UPHS is a part of Duke LifePoint Healthcare, a joint venture of Duke University Health System (Moody’s rated “Aa2”) and LifePoint Health, a leading healthcare company.
More Information
Call for Offers Date: Wednesday, June 8th 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
MI RE Broker 6505385865
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