6-Building Medical Office Portfolio | Strategic Locations throughout Pennsylvania
Offers Due: Wednesday, March 21, 2018
BGL Real Estate Partners has been exclusively retained by ownership to offer for sale the fee-simple interest in a portfolio of six (6) medical office buildings totaling approximately 37,839 rentable square feet (individually the “Property”, and collectively the “Portfolio” or “Properties”). The Properties are 100% occupied by Progressive Vision Institute (PVI), a leading ophthalmology practice established nearly 30 years ago that is comprised of thirteen (13) eye physicians, nine (9) of whom are ophthalmic surgeons. Three (3) of the 6 Properties are equipped with an on-site ambulatory surgery center which provides for top surgical outcomes for cataract, retinal, oculoplastic, and glaucoma surgeries.
PVI offers eye care at eight (8) locations throughout Central and Eastern Pennsylvania – Pottsville, Allentown, Philadelphia, Wyomissing, Shamokin, Easton, and Oaks. PVI’s specialties include cataract surgery, LASIK surgery, macular degeneration, oculoplastic surgery, cornea disease, glaucoma management, eye exams, diabetic eye disease, pediatric retina & ophthalmology, optical center, and retinal detachment. The PVI practice is primarily owned by two (2) ophthalmic surgeons, and PVI has consistently demonstrated very strong practice financials, having generated over $18 million in net revenue as of Oct. 2017 on a TTM basis, nearly $3 million more than 2016. PVI accepts most insurances and recently received the Certificate of Excellence award from the Pennsylvania Healthcare Cost Containment Council in recognition for its commitment to improving the quality and cost of healthcare throughout Pennsylvania.
The Portfolio is being offered as a fee simple investment and free and clear of any debt. PVI will execute new 12-year leases upon closing with 2% fixed annual escalations, and The Portfolio will generate a year-1 Net Operating Income of $986,058. This is an exceptional opportunity to acquire a net-leased investment with an established specialty practice that offers comprehensive ophthalmic and optometric care to Eastern Pennsylvania. PVI has demonstrated strong and improving practice financials with EBITDAR rent coverage ratios of 4.14X and 3.23X in 2017 and 2016 respectively, providing a durable income stream over the lease term.
Investment highlights:
- Premier Facilities: PVI recently opened their new Allentown facility which includes state-of-the-art outpatient eye surgery center, ophthalmology exam area, eyeglass/contact lens center, and medical spa. PVI also recently opened their Easton office, and two (2) of the other four subject Properties contain on-site ambulatory surgery centers.
- Leading Practice: PVI has been providing comprehensive ophthalmic and optometric care to the residents of Eastern Pennsylvania for nearly three (3) decades. PVI founder, Dr. Solomon C. Luo, MD, FACS, was one of the first physicians to use the excimur laser to perform LASIK Eye Surgery, and PVI is now comprised of 12 physicians who can perform virtually all ophthalmic treatments and surgeries.
- Large Service Area: PVI treats thousands of patients each year at their eight (8) locations spread throughout Eastern Pennsylvania.
- Strong Practice Financials: PVI produced a 4.15X EBITDAR/rent coverage ratio as of Oct. 2017 on a TTM basis, and they generated a 3.24X coverage ratio for full year 2016.
- Top Msa’s: PVI’s offices are primarily located in Philadelphia and the Allentown – Bethlehem – Easton MSA, ranked #69 nationally with a population of over 800,000.
- In-Network Contracts: PVI is in-network with most insurance companies and they recently received the Certificate of Excellence award from the Pennsylvania Healthcare Cost Containment Council.
Offers Due: Wednesday, March 21, 2018
Submit questions and offers to: Allen C. Inman | ainman@bglco.com
| Christopher L. Stai, CPA Managing Director BGL Real Estate Partners 480.433.3494 | cstai@bglco.com |
Clinton J. Parker Managing Director BGL Real Estate Partners 210.352.5832 | cparker@bglco.com |
| Andrew R. Larwood Director BGL Real Estate Partners 312.658.4756 | alarwood@bglco.com |
Allen C. Inman Director BGL Real Estate Partners 312.658.4754 | ainman@bglco.com |
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