For Sale: Campus at Crooks and Auburn, 1854 and 1886 W. Auburn Road, Rochester Hills, Mich.

Campus_at_Crooks_and_Auburn_eblastThe Offering

CBRE’s Healthcare Capital Markets Group is pleased to exclusively offer the Campus at Crooks and Auburn (the “Portfolio” or “Property”) for purchase.  The Portfolio totals 48,444 rentable square feet containing two adjacent multi-tenant medical office buildings in Rochester Hills, Michigan, a highly affluent suburb of Detroit. The offering provides investors with the unique opportunity to acquire a stabilized portfolio that is 95% occupied by multiple tenants and anchored by DaVita (NYSE: DVA) and St. Joseph Mercy Health System, a wholly owned and operated subsidiary of Trinity Health (S&P ‘AA’, Moody’s ‘‘Aa2’). Trinity Health recently merged with Catholic Health East and is one of the largest hospital systems in the Midwest with combined revenues that exceed $13 billion annually.

Medical Building C (1854 West Auburn Road) is a 24,224 square foot medical office facility built in 2005. The Property is 100% leased to multiple tenants, 63% of which is guaranteed by DaVita, Inc. Medical Building C is also occupied by Plastic Surgery Arts & Spa and Michigan Kidney Consultants. Medical Building C is currently encumbered by CMBS debt with an estimated balance of $3.7 million, maturing in 2016 with a fixed interest rate of 5.83% and 30-year amortization schedule. The existing debt can either be assumed or defeased with the purchase of the Portfolio.

Medical Building D (1886 West Auburn Road) is a 24,220 square foot multi-tenant medical facility that was built in 2007. The property is 90% leased, with St. Joseph Mercy Health System (Trinity Health) occupying 41% of the overall tenancy. The other tenants in the building include Metro Infectious Disease Consultants, Oakland Hills Counseling, and the Waller Wellness Center.The owner recently refinanced Medical Building D with a $3.7 million non-recourse loan with a fixed interest rate of 3.25% for 15-years and amortized over 30-years. The loan can be prepaid without penalty after the 24th month and can be assumed without any fees.

Investment Highlights

  • Strong Health System Credit Tenancy
  • Strategic Outpatient Location
  • NNN Leases with Annual Escalations
  • Highly Affluent Suburban Location
  • CON Protections in Michigan
  • Appealing Aging Trends
  • Significant Tenant Investments
  • Recession Resistant Product Type

 
Offering Information

Offering price:   best offer
Portfolio SF:       48,444 rsf
Occupancy:         95%
Year built:            2005 & 2007
In place NOI:      $855,270
CBRE investment contacts 

Chris Bodnar 
Healthcare Capital Markets
+1 303 628 1711
e-mail

Lee Asher
Healthcare Capital Markets
+1 404 504 5965
e-mail 

Anne Galbraith Kohn
Detroit Capital Markets
+1 248 351 2023
e-mail

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