OFFERS DUE SEPTEMBER 14TH
THE SOUTHERN CORE MEDICAL OFFICE PORTFOLIO
TEXAS | GEORGIA | FLORIDA | CAROLINAS | TENNESSEE | ARKANSAS
WEST GEORGIA EYE
WISE HEALTH ARGYLE COLLECTION
ADVANCED UROLOGY MOB & ASC
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THE OFFERING
- 12 ASSET COLLECTIONS
- $9.9 million NOI
- 7 STATES
- IO-YEAR WALT
- 400,298 SQUARE FEET
- 2.0% AVERAGE ANNUAL GROWTH
- 99.4% OCCUPANCY
- 96% NNN LEASES
- 67% HEALTH SYSTEM/CREDIT/DOMINANT PHYSICIAN GROUP
- 9.8-YEAR AVG. BUILDING AGE
The Newmark Healthcare Capital Markets team has been retained by Montecito Medical Real Estate (“Montecito”) as its exclusive financial advisor with respect to the sale or recapitalization Of a portfolio Of 16 outpatient medical office buildings, located in 7 south and southeastern US states, totaling 400,000 square feet. The institutional-quality collection of assets is 99+% leased overall, of which, 67% is leased by leading health systems. The strategically-curated portfolio features over 10 years of weighted average lease term, and fixed average annual rent growth Of 2.0%. The Portfolio generates a year 1 NOI Of $9.9 million, which grows by 21% over the 10-year analysis period.
INVESTMENT HIGHLIGHTS
Opportunity to Acquire Immediate Scale
The Portfolio enables investors to acquire an institutionally owned and managed 400,000 SF MOB portfolio, located across 7 states throughout the South and Southeastern regions of the United States (Florida (4), Texas (2), Georgia (2), Tennessee (1), North Carolina (1), South Carolina (1) and Arkansas (1)). This strategic aggregation of assets allows investors the ability to efficiently acquire significant scale in some of the country’s most desirable and highest growth markets.
High Barrier-to-Entry Certificate of Need States
83% of the assets are located in Certificate of Need states which govern many of the higher-acuity services within the portfolio limiting the potential for tenant relocation and creating a barrier to entry for new competition.
Critical Tenant Alignment and High Retention
The MOBs included in the Portfolio offer strategic alignment with its provider tenants as 70% of the assets have been acquired via sale leaseback, under long-term leases 30% of which include physician re-investment. This strategic alignment provides surety of cash flow throughout the hold period and supports high renewal probabilities to mitigate future rollover risk. Further, favorable economic tailwinds support long-term demand for the healthcare services being provided in the Portfolio’s properties.
Tax Friendly States
7 Of the 12 assets (58% of the Portfolio) are located in states without state income tax.
Institutionally Owned & Maintained Assets
Current ownership has taken meticulous care of the Portfolio throughout its ownership tenure. These Class A assets have been maintained to best-in-class, institutional standards, and feature high-end finishes and specialized buildouts to accommodate the various specialty practitioners that tenant each facility. With an average building age Of less than 10 years and 96% Of the in-place leases being either absolute net Or triple net, Landlord exposure to future capital expenditures is limited.
High Acuity Uses & Sticky Tenancy
8 of 12 MOBs within the portfolio house high acuity uses including surgery, orthopedics, spine & imaging.
If you have any questions regarding the portfolio or would like to schedule a tour, please do not hesitate to call. Thank you again for your interest in The Southern Core Medical Office Portfolio.
All the best,
Healthcare Real Estate Capital Markets:
Ben Appel
Executive Managing Director
(215) 872.9903
ben.appel@nmrk.com
John Nero
Managing Director
(610) 308.8192
john.nero@nmrk.com
Jay Miele
Senior Managing Director
(732) 778.3895
jay.miele@nmrk.com
Michael Greeley
Senior Managing Director
(617) 223.1623
michael.greeley@nmrk.com
Healthcare Debt Placement:
Healthcare Analytics Team:
John Nero
Managing Director
(610) 308.8192
john.nero@nmrk.com
Ron Ott
Associate
(570) 417.8140
ron.ott@nmrk.com
Adam Goss
Associate
(713) 444.1024
adam.goss@nmrk.com
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