Investment Overview
Marcus & Millichap’s Healthcare Real Estate Group is pleased to present the Sunset Medical Building located at 10777 Sunset Office Drive in Sunset Hills, Missouri. The project is a 52,237-square foot Class B, three story, medical office building that was constructed in 1978, and renovated in 2003.
The project features steel, exterior poured concrete and glass construction, with over 240 surface parking spaces (a ratio of 4.50:1000-square feet). The project is equipped with three passenger elevators and one freight elevator. The total land area is approximately 3.19 acres.
The property is situated between the cities of Sunset Hills, Kirkwood, and Crestwood, approximately 12 miles from downtown St Louis, Missouri. The building is also highly visible from Interstate 44 and Highway 270.
Investment Highlights
- 97% Occupied, 52,237-Square Feet, Class B, Medical Office Building
- 64% Credit Tenants – Mercy (AA-), SSM Health (A+) & Sisters of St Joseph’s of Carondelet (AA)
- Near Des Peres, SSM Health, Cardinal Glennan’s Children’s & Barnes-Jewish Hospitals
- Highly Visible, Prominent Freeway Location
- Located 12 Miles from Downtown St. Louis, MO
- $168/Square Foot – Well Below Replacement Cost
Offering Summary
| Price | $8,750,000 |
| Down Payment | (35%) $3,062,500 |
| Loan Amount | $5,687,500 |
| Loan Type | Proposed New |
| Interest Rate/Amortization | 4.500%/30 Years |
| Rentable SF | 52,237 |
| Price Per Rentable SF | $167.51 |
| Year Built | 1978/2003 |
| Parcel Size | 3.19 AC |
| Cap Rate – Current | 7.08% |
| Net Cash Flow After Debt Service – Current | 8.93% |
| Total Return – Current | 12.19% |
Operating Data
Income (Current)
| Base Rent | |
| Occupied Space | $1,067,230 |
| Available Space at Market Rents | $28,539 |
| Gross Potential Rent | $1,095,769 |
| Expense Reimbursements | $2,160 |
| Gross Potential Income | $1,097,929 |
| Vacancy/Collection Allowance | 5 % / $54,788 |
| Effective Gross Income | $1,043,141 |
| Total Expenses | $423,894 |
| Net Operating Income | $619,246 |
| Debt Service | $345,813 |
| Debt Coverage Ratio | 1.79 |
| Net Cash Flow After Debt Service | 8.93% / $273,434 |
| Principal Reduction | $99,939 |
| Total Return | 12.19% / $373,373 |
Expenses (Current)
| Real Estate Taxes | $145,500 |
| Insurance | $13,800 |
| Utilities | $138,700 |
| Repairs and Maintenance | $13,700 |
| Management Fee | $31,294 |
| Janitorial | $52,400 |
| Fire / Life Safety | $1,800.00 |
| Elevator | $5,000 |
| Trash | $4,200 |
| Landscaping / Parking Lot | $6,000 |
| HVAC | $2,500 |
| Security | $3,200 |
| Other | $5,800 |
| Total Expenses | $423,894 |
| Expenses / SF | $8.11 |
Contact Information
Ryan Gonzales
Associate
Tel: (858) 373-3100
Fax: (858) 373-3110
License: CA 01109934
Ryan.Gonzales@marcusmillichap.com
www.marcusmillichap.com/RyanGonzales
Marcus & Millichap
4660 La Jolla Village Drive
Suite 900
San Diego, CA 92122
Tel: (858) 373-3100
Fax: (858) 373-3110
www.marcusmillichap.com
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