For Sale: Price Reduced – 100% Leased Medical Office Building – Fairfield County, CT

CBRE, Inc. has been retained as exclusive advisor in the fee simple sale of 555 Bridgeport Avenue, a 100% leased, two-tenant medical office building located in Shelton, CT approximately 65 miles from midtown Manhattan. The property offers stable cash flow and ease of management with the potential for significant upside as the current in place rents are approximately 31% below market. 555 Bridgeport Avenue offers convenient access to eastern Fairfield County as it is located just off Route 8 which connects to the Merritt Parkway and I-95. Additional highlights of the offering include:
 
FULLY LEASED ASSET
555 Bridgeport Avenue is 100% leased by two medical office tenants, Rehabilitation Associates (since 1996) and Primary Care of Shelton (since 2009), providing stable occupancy and cash flow.
 
EARLY RENEWALS
Rehabilitation Associates, Inc. originally expired on 6/30/16 and is in the process of executing an early renewal through 6/30/18.  Primary Care of Shelton, LLC currently expires on 11/30/15 and is also in the process of executing an early renewal through 11/30/17.
 
MEDICAL OCCUPANCY
The healthcare industry is attractive to investors for its staying power through market fluctuations and the historical tendency of these users to remain in locations for longer periods of time than traditional office tenants. 
 
RECENT IMPROVEMENTS
There has been significant recent investment in the property that includes all new HVAC since 2011, new parking lot in 2009, exterior repairs with new stain in 2007, replacement of 23 windows in 2007 and new glass entry in 2006.
 
BELOW MARKET RENTS
Due to limited marketing for potential tenants, the current in-place rents for 555 Bridgeport Avenue average $12.62 per square foot gross, and market rents are $16.50 or 31% higher for similar assets. This below market rent provides an investor with the opportunity to significantly increase the property cash flow upon tenant renewals by increasing rents to market levels.
 
LOW VACANCY SUBMARKET
Eastern Fairfield County historically operates at a lower Availability Rate than the overall Fairfield County market. The Q4 2012 Availability Rate is 12.95% for Eastern Fairfield County while Central Fairfield County is 22.18% and Stamford is 23.22%.
 
NEARBY AMENITIES
555 Bridgeport Avenue is located along the Trap Falls Corridor in southern Shelton which has numerous amenities such as restaurants, retailers, grocers, banks, lodging, day care and fitness centers making it a convenient location for tenants of the property.
 
CONVENIENT TRANSPORTATION
Various transportation options are available to 555 Bridgeport Avenue due to its location between exits 12 and 13 on Route 8 highway, which provides access to the Merritt Parkway (2 miles) and Interstate 95 (4 miles).