Santa Monica, CA (January 19, 2016) – Sands Investment Group, (SIG), one of the fastest growing net lease firms in the nation, has announced the net lease sale of two Pennsylvania medical office buildings located in the cities of Whitehall and Bethlehem. The transactions include:
- The $4,415,658 million sale of a 22,742-square-foot, three-tenant medical office property located at 2014 County Line Road in Bethlehem. The property, in an optimal medical area surrounded by a number of hospitals and clinics, is situated within a mile of the Lehigh Valley Hospital. Tenants include Fresenius, RMS, a DaVita subsidiary, and Valley Kidney Specialists. SIG sold the building, developed in 1972, at $194 per foot at a 6.8 cap rate.
- The $3,125,000 million sale of a 10,170-square-foot single tenant medical office building anchored by Fresenius Medical Care. The property is located at 1320 Mickley Road in Whitehall. This is an extremely strong location near six major area hospitals. SIG achieved a cap rate of 6.7 on this transaction.
Bryant Hoover of Sands Investment Group’s Santa Monica office represented the seller, a doctor/owner, in both transactions. The buyer for both properties was an East Coast institutional investment firm.
According to Bryant Hoover of Sands Investment Group’s Santa Monica office, both properties had short -term leases that needed to be restructured prior to the disposition in order to achieve the desired return.
Based on Hoover’s extensive experience in the net lease medical office sector along with his in-depth relationships with institutional investors and REITs, he was able to effectively position these buildings by educating the doctors on cap rates and structuring a sale/leaseback which helped the doctors create a sales price that exceeded their expectations. “This in turn gave the buyers a long-term investment asset with great returns, thus a win-win for both sides,” said Hoover.
“REITs currently own less than 20 percent of the entire US medical office market,” added Hoover, “By structuring a sale/leaseback with the doctors and owners of the MOB, these assets become more desirable for future investors,” added Hoover.
About Sands Investment Group
Sands Investment Group is a commercial real estate brokerage firm that specializes in the buying and selling of net lease properties for private investors and institutions across the United States. Since its founding in 2010, SIG has closed over 650 transactions worth more than $2.2 Billion in 45 states. Advisors with the company currently have over $300 million in active inventory. As the first boutique firm to offer a national listing platform while providing the proven track record of a large firm, Sands Investment Group has become one of the nation’s fastest growing net lease companies in the US. As a leader in the industry and the only to offer product-type specialization, the firm’s experience in net lease, retail, office and industrial transactions is unparalleled. Sands Investment Group has offices in Santa Monica, CA, Charleston, SC, Atlanta, GA, and Austin, TX. Learn more at www.signnn.com.
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