CALL FOR OFFERS DUE WEDNESDAY, OCTOBER 17, 2018
THE HOPE ORTHOPEDIC PORTFOLIO represents an exceptional opportunity for qualified investors to acquire three (3) properties located in Salem, OR (collectively, the “Portfolio” or “Properties” and individually, the “Property”). The Properties, totaling approximately 48,242 rentable square feet, are 100% leased and occupied by Hope Orthopedics, the leading orthopedic practice in Salem.
The primary asset within the Portfolio, Hope Orthopedic Clinic, (the “Clinic”), is prominently located at 1600 State Street, a major east-west arterial, providing convenient access to Salem Health Hospital (0.8 miles). Consisting of 30,642 rentable square feet across two floors, the Clinic is comprised of seven (7) pods designated for office visits related to pre- and post- operatory treatment where fifteen (15) physicians and thirteen (13) physician assistants provide orthopedic care across several subspecialties.
In addition to the clinical area, the Clinic offers a 1.5T MRI machine, three (3) X-Ray machines, a lab operated by Salem Health, and a physical therapy clinic on the 2nd floor where eleven (11) therapists provide physical and occupational therapy. All of the surgeons are board certified by the American College of Surgeons and benefit from the strong referral network with affiliated Salem Health Hospital.
The Portfolio is conveniently located in Salem near downtown Salem and the Salem Health Hospital Campus with prominent visibility and exceptional access from the intersection of Interstate 5 and Highway 22. Salem is the capital of Oregon and the third largest city in the state with over 150,000 residents. The Salem Metropolitan Statistical Area is the second largest in the state, while the Portland- Vancouver-Salem Combined Statistical Area is the 25th largest in the country. The combination of continued rapid population growth in Oregon, aging demographics, and a geographically strong healthcare market supports continued demand for orthopedic care in the future.
INVESTMENT HIGHLIGHTS
- PREMIER FACILITY: Hope Orthopedics Clinic is a Class-A state-of-the-art medical building in Salem, OR and purposely designed and constructed for the existing tenancy. The Clinic features 1.5T MRI, 3 X-Rays, Lab operated by Salem Health, seven (7) exam areas, and physical therapy services.
- STRATEGIC LOCATION: Located approximately 0.8 miles from Salem Health Hospital where many of the physicians at Hope Orthopedics have admitting privileges.
- GROWING MSA: Salem ranks #126 as the largest metropolitan area in the United States and is a part of the 2nd largest metro area in Oregon and 3rd fastest-growing metropolitan area in the state.The Portland-Vancouver-Salem Combined Statistical Area ranks 25th largest in the country.
- DOMINANT PRACTICE: Hope Orthopedics is the dominant orthopedic practice in Salem, OR with fifteen (15) orthopedic surgeons and full medical staff. Hope Orthopedics has demonstrated exceptional financial strength with over $23 million in net revenues in 2016 & 2017 which equates to an EBITDAR/Rent Coverage Ratio of over 7X.
- IN-NETWORK CONTRACTS: Hope Orthopedics is in-network with all major insurance companies including Aetna, CareOregon, Cigna,First Choice Health, HealthNet, Kaiser, PacificSource, Providence, UHC, and a number of others.
- STRONG DEMOGRAPHICS: Nearly 33,802 people, or 14.6% of the population, that live within a 5-mile radius of the Property are aged 65 or older.
- AFFILIATED WITH LEADING HOSPITAL: Hope Orthopedics has admitting privileges at Salem Health Hospital which is the leading hospital in the region. Salem Health has the largest market share for patient discharges in both its primary and secondary service areas with over 75% and 45% market share, respectively.
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