The Offering
Call for Offers: July 25, 2016
2704 N. Tenaya Way is a single story Class B suburban medical office building 100% leased on an Absolute Net Basis to United Healthcare Services, Inc. Tenant’s lease commenced December 28, 2000 and will expire December 31, 2023; tenant has 3, 6-year options to extend at $26.39 psf, with 1.5% increases every year. Tenant’s current rent is $24/sf annually NNN, which is considered to be market given the inherent value of the existing tenant improvements.
The property is located within the Las Vegas Technology Center, a 250 acre master planned business park, and is just south of the Mountain View Hospital and Medical Center (340 beds), owned and operated by Sunrise Heathcare System which is owned by Hospital Corporation of America.
2704 N. Tenaya is home to the following services: OB/GYN, Radiology, Urgent Care, Adult Medicine and Pediatrics.
Access to the property is provided via two (2) curb cuts, one (1) on Box Canyon Drive and one (1) connecting the property to the private business park. There are 219 parking stalls contained within the property’s parcel, including 13 accessible parking stalls resulting in an overall parking ratio of 4.9:1000.
| Purchase Price | $15,750,000 |
| Price/SF | $350 |
| In-Place NOI | $1,077,456 |
| Actual Cap Rate | 6.84% |
| Square Footage | ±44,894 |
| Occupancy | 100% |
| Acreage | ±3.62 |
| Zoning | Planned Business Park District (C-PB), Clark County |
| Year Built | 1995 |
Investment Highlights
Call for Offers: July 25, 2016
- UnitedHealth Group Inc. (NYSE :UNH) is a managed health care company based in Minnesota and is number 14 on the Fortune 500 with $141.5 Billion in revenue for 2015, rated A- by S&P and A3 by Moody’s. UnitedHealth Group serves approximately 70 million individuals as the largest single health carrier in the United States!
- Absolute NNN Lease Structure, providing ownership with NO management responsibilities.
- Location – The property is located on Tenaya Way, roughly ¼ mile West of US-95, and just south of the Mountain View Hospital and Medical Center (340 beds). The property is situated within the Las Vegas Tech Center, a 250 acre master planned business park, which is home to United Healthcare Group’s corporate campus, and the future home of the University of Nevada’s school of medicine, which is reportedly moving all of their residents to Mountain View Hospital. Furthermore, its proximity to Summerlin, Las Vegas’ most popular master planned community has historically provided strong appeal to potential tenants.
- Strong Tenancy – Given the strength of the tenant, the location of the building relative to the tenant’s patient base, location of the tenant relative to its ±479,829 square feet of additional owned/leased medical/office buildings, more than $1.5 million spent on tenant improvements in 2012/2013 and the medical industry as a whole, it’s assumed the tenant will retain this location long term.
- Medical Office Asset – Leased medical assets continue to be the favored product type in commercial real estate. Because of the expensive build-out associated with medical space, tenants move infrequently to avoid relocation costs. This alleviates much of the rollover, vacancy risk associated with commercial real estate. Case in point, the tenant has occupied this building since 2000.
- Appealing Aging Trends – The number of Americans aged 65 and older (with an increased need for health care) is projected to double to 71 million or nearly 20% of the U.S. population by 2030. Within a five-mile radius of the Property, the 65 and older age segment currently comprises approximately 16% of the population. Furthermore, over the next five years, inpatient acute procedures are expected to grow by 12.5% and outpatient procedures are expected to grow by 10.9%. These trends support the projected stability of the Property going forward. (Source: MRA).
Contact Information
Charles M. Moore, CSM
Senior Vice President
+1 702 369 4820
charles.moore@cbre.com
Marlene M. Fujita, CCIM
First Vice President
+1 702 369 4862
marlene.fujita@cbre.com
Bart A. DeBuono
Client Services Specialist
+1 702 369 4874
bart.debuono@cbre.com
Michelle Carpenter
Client Services Coordinator
+1 702 369 4845
michelle.carpenter@cbre.com
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