For Sale: New Albany MOB | 2125 State Street New Albany, IN 47150

Marcus & Millichap - New Albany MOB Marcus & Millichap - New Albany MOB Map 1Investment Highlights

  • 59,587 SF Multi-Tenant MOB (95% Leased)
  • 0.3 Miles from 329-Bed Floyd Memorial Hospital (BBB- Credit)
  • Floyd Memorial Leases 60% of the Space & Would Like to Expand
  • Sub 7-Percent Market Vacancy Within a 5-Mile Radius

Marcus & Millichap - New Albany MOB Map 3

Offering Summary

Price $11,350,000
Down Payment (35%) $3,972,500
Loan Amount $7,377,500
          Loan Type Proposed New
         Interest Rate/Amortization 4.750% / 30 Years
Rentable SF 59,587
Price Per Rentable SF $190.48
Year Built 1996
Parcel Size 7.28 AC
Cap Rate – Current 7.00%
Net Cash Flow After Debt Service – Current 8.38%
Total Return – Current 10.98%

Investment Overview

Marcus & Millichap is pleased to present the New Albany MOB. The project is located in the Louisville, KY MSA at 2125 State Street in New Albany, IN.

The New Albany MOB is a 59,587 SF, multi-tenant medical office building situated near the Floyd Memorial Hospital campus.  Located 0.3 miles from the 329-bed Floyd Memorial Hospital (BBB- Credit), the subject property is a testament to the growing demand for medical services in the local area.  Floyd Memorial occupies 60% of the current rentable space and would like to further expand their operations at the property. Floyd Memorial Hospital is currently under contract to be acquired by the A- credit rated Baptist Health. The project is currently 95% leased to 3 tenants offering an investor the opportunity to own a stabilized and majority credit leased MOB.

The building’s excellent access to the I-265, coupled with its close proximity to the Floyd Memorial Hospital, provides ideal positioning and convenient services.

Operating Data



Base Rent  
Occupied Space $841,008
Available Space at Market Rents $46,886
Gross Potential Rent $887,894
Expense Reimbursements $241,117
Other Income $2,160
Gross Potential Income $1,131,171
Vacancy/Collection Allowance 5.3% / $46,886
Effective Gross Income $1,084,285
Total Expenses $289,671
Net Operating Income $794,614
Debt Service $461,814
Debt Coverage Ratio 1.72
Net Cash Flow After Debt Service 8.38% / $332,799
Principal Reduction $103,309
Total Return 10.98% / $436,108


Real Estate Taxes (1) $128,200
Insurance $10,500
Utilities $55,000
Repairs & Maintenance $39,000
Management Fee (2) $43,371
HVAC $3,700
Janitorial $4,400
Other $3,300
Security $2,200
Total Expenses $289,671
Expenses Per SF $4.86

Contact Information

Nicholas Reese
Tel: (949) 419-3200
Fax: (949) 419-3210



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