Investment Overview
Marcus & Millichap is pleased to present the building located at 220 Bessemer Road in Mount Pleasant, Pennsylvania. The project is an approximately 33,983 SF, Class B medical office building that was constructed in 1990.
The property is situated 42 miles from downtown Pittsburgh, Pennsylvania. The project is located Northeast of State Highway 119 and the PA Route 819 (Porter Ave) intersection. The building is constructed of reinforced concrete and glass. The project offers a very large 2.12 acre lot.
The building is situated 1.25 miles from the Excela Health-Frick Hospital, a 102-bed facility in Mount Pleasant that serves Westmorland County. The subject property is anchored by Glaucoma-Cataract Consultants, Inc., which leases 15% of the building and has 10 years remaining on their lease. The established tenancy in the project also includes 3 credit rated tenants – Excela Health, UPMC and American Dental Partners – which lease 29% of the project.
The property is located within Mount Pleasant’s primary hospitality, commercial retail and business core, which includes a Walmart Supercenter, KMart, Peebles, Rite Aid, Applebee’s, Mt Pleasant Surgery Center and Holiday Inn Express.
Investment Highlights
- 33,983 SF – Multi-Tenant Medical Office Building
- 29% Leased to 3 Credit Rated Tenants
- Anchored by Glaucoma-Cataract Consultants, Inc. (15%) – 10 Years Remaining on Lease)
- 42 Miles from Downtown Pittsburgh
- Value-Add Opportunity – Projected 10.88% Pro Forma Cap Rate at 95% Occupancy
- Established Tenancy, Low Historical Turnover & Little Competition
Major Tenants
- UPMC
- Excela Health
- American Dental Partners
- Glaucoma-Cataract Consultants, Inc.
Offering Summary
| Price | $2,850,000 |
| Down Payment | (35%) $997,500 |
| Loan Amount | $1,852,500 |
| Loan Type | Proposed New |
| Interest Rate / Amortization | 4.750% / 25 Years |
| Rentable SF | 33,983 |
| Price Per Rentable SF | $83.87 |
| Year Built | 1990 |
| Parcel Size | 2.12 Acres |
| Cap Rate – Current | 8.49% |
| Cap Rate – Pro Forma | 10.88% |
| Net Cash Flow After Debt Service – Current | 11.56% |
| Net Cash Flow After Debt Service – Pro Forma | 18.38% |
| Total Return – Current | 15.52% |
| Total Return – Pro Forma | 22.35% |
Operating Data
| Income | Current | Pro Forma |
| Base Rent | ||
| Occupied Space | $360,283 | $360,283 |
| Available Space at Rental Markets | $103,236 | $103,326 |
| Gross Potential Rent | $463,519 | $463,609 |
| Expense Reimbursements | $12,900 | $12,900 |
| Other Income | $8,500 | |
| Gross Potential Income | $484,919 | $476,509 |
| Vacancy / Collection Income | 22.3% / $103,236 | 5% / $23,180 |
| Effective Gross Income | $381,683 | $453,329 |
| Total Expenses | $139,684 | $143,266 |
| Net Operating Income | $241,999 | $310,062 |
| Debt Service | $126,737 | $126,737 |
| Debt Coverage Ratio | 1.91 | 2.45 |
| Net Cash Flow After Debt Service | 11.56% / $115,262 | 18.38% / $183,325 |
| Principal Reduction | $39,598 | $39,598 |
| Total Return | 15.52% / $154,860 | 22.35% / $222,923 |
| Expenses | Current | Pro Forma |
| Real Estate Taxes | $30,100 | $30,100 |
| Insurance | $4,400 | $4,400 |
| Utilities | $26,700 | $26,700 |
| Repairs & Maintenance | $29,800 | $29,800 |
| Management Fee | $19,084 | $22,666 |
| Elevator | $5,400 | $5,400 |
| HVAC | $2,600 | $2,600 |
| Landscaping / Parking Lot | $7,600 | $7,600 |
| Janitorial | $10,600 | $10,600 |
| Security | $1,200 | $1,200 |
| Trash | $2,200 | $2,200 |
| Total Expenses | $139,684 | $143,266 |
| Expenses Per SF | $4.11 | $4.22 |
Contact Information
Ryan Gonzales
Associate
Tel: (858) 373-3100
Fax: (858) 373-3110
License: CA 01109934
Ryan.Gonzales@marcusmillichap.com
www.marcusmillichap.com/RyanGonzales
Marcus & Millichap
4660 La Jolla Village Drive
Suite 900
San Diego, CA 92122
Tel: (858) 373-3100
Fax: (858) 373-3110
www.marcusmillichap.com
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