Brown Gibbons Lang & Company | Real Estate Partners has been retained by ownership to offer qualified investors the exceptional opportunity to acquire the Piedmont Healthcare Portfolio, which consists of three facilities totaling approximately 44,162 rentable square feet (the “Properties” or “Portfolio”). Located in Ellijay, Georgia, a gateway to the Chatahoochee National Forest and the famed Appalachian Trail, the recently renovated facilities provide convenient patient access, expanding the reach of Piedmont Healthcare’s nearby Mountainside Hospital in Jasper, Georgia. In 2015 alone, Piedmont Mountainside handled over 36,000 outpatient encounters, performed over 2,500 surgical procedures, and delivered 329 newborns to the local community.
The Portfolio is ideally located on Highway 76 (Industrial Boulevard), a central arterial in the town of Ellijay and in close proximity to other Piedmont sponsored facilities in the area, including emergency, OBGYN, and sleep. Piedmont Healthcare is the leading non-profit healthcare system serving the Atlanta metropolitan area and has grown to encompass six hospitals and nearly 100 physician and specialist offices across greater Atlanta and North Georgia. As of November 2015, Moody’s affirmed Piedmont Healthcare’s credit rating of Aa3 (equivalent to S&P AA-), which is classified as high investment grade. The outlook for Piedmont’s rating is reported as stable, based upon favorable operating margins and improved liquidity ratios.
The Portfolio is 100% leased under a master lease that commenced July 1, 2016 and has a Year-1 net operating income of $353,616 with 3% fixed annual rental increases. This is a unique opportunity to acquire three recently renovated healthcare facilities that benefit from a long-term lease with an investment grade rated health system.
Opportunity Highlights
- The Portfolio has a Year-1 NOI of $353,616 and is supported by a 10-year absolute NNN lease with 3% fixed annual rental escalations
- The Portfolio is secured by a long-term master lease with Piedmont Healthcare, the leading non-profit healthcare system serving the Atlanta metropolitan area and North Georgia
- The Properties were constructed in 2005, but were recently upgraded at a cost of over $600,000
- The Portfolio is strategically located in proximity to other Piedmont sponsored facilities in the area as well as Piedmont Mountainside Hospital, supporting the system’s hub and spoke model
- The master lease benefits from a below market rent of only $8.01 / SF
- The Portfolio can be acquired below replacement cost
Call for Offers Date: Wednesday, August 31, 2016
Submit Questions and Offers to:
Collin L. Hart | Director
BROWN GIBBONS LANG | Real Estate Partners
Direct: 702.839.8737 | chart@bglco.com
View the Executive Summary for more information.
Bypass the online summary and directly execute the Confidentiality Agreement
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
Collin L. Hart | Director
BROWN GIBBONS LANG | Real Estate Partners
Direct: 702.839.8737 | chart@bglco.com
Andrew R. Larwood | Director
BROWN GIBBONS LANG | Real Estate Partners
Direct: 312.658.4756 | alarwood@bglco.com
Allen C. Inman | Director
BROWN GIBBONS LANG | Real Estate Partners
Direct: 312.658.4754 | ainman@bglco.com
Christopher D. Sackley | Managing Director
BROWN GIBBONS LANG | Real Estate Partners
GA RE License #364135
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