The asset was sold via zero cash flow financing, offering the buyer tax advantages
Newport Beach, CA (April 26, 2022) – SRS Real Estate Partners’ National Net Lease Group (NNLG) announced today it has completed the $50.3 million leasehold ownership sale of a single-tenant office/lab property fully occupied by Clinical Labs of Hawaii (CLH), the largest pathology/laboratory medical company in the Hawaiian Islands, for use as its headquarters. CLH is a wholly owned subsidiary of Sonic Healthcare out of Sydney, Australia, the world’s third largest pathology/laboratory medicine company. The property is located at 93-193 Aiea Heights Drive in Honolulu, HI.
SRS NNLG’s Senior Vice President John Redfield represented the seller, iStar, a REIT, as well as the buyer, a private investor.
Built in 1975 and completely renovated in 2016, the four-story, 81,596-square-foot property sits on 2.76 acres. Clinical Labs of Hawaii, which is the top medical laboratory company in Hawaii with over 50 locations, was on a long-term triple net lease whereby the purchaser bought the leasehold interest subject to a long-term ground lease.
“This was a credit tenant-leased (CTL) financed zero cash flow transaction,” said Redfield. “The buyer purchased the asset based on the high-quality nature of the tenant and real estate along with the tax and equity growth benefits from the debt structure.”
He added, “The zero cash flow market has remained very strong in the current economic environment, that coupled with the increased demand in the healthcare sector plus limited supply of high-quality real estate in the Honolulu market made this a very sought-after investment.”
The property is located in a high growth area just three miles from the Honolulu International Airport and is centrally located to transport test samples throughout Hawaii.
In 2021, SRS’ Investment Properties Group (IPG) and National Net Lease Group (NNLG) completed more than $3.1 billion in deal volume comprised of 899 transactions in 49 states, and currently has more than $2 billion in property on the market, with nearly 200 properties sold year-to-date in 2022.
About SRS Real Estate Partners
SRS Real Estate Partners is the largest real estate company in North America exclusively dedicated to retail services. Headquartered in Dallas with more than 26 offices worldwide, SRS’ strong reach and international presence provide the company with unparalleled knowledge both globally and domestically. As a result, clients of SRS have a competitive edge through a full range of offerings including brokerage services, corporate services, development services, and investment services. Since its inception in 1986, SRS has built a strong foundation in the retail real estate world and grown into one of the industry’s most influential and respected leaders. Our success is measured in the achievement of our clients’ objectives, satisfaction and trust. For more information, please visit www.srsre.com.
SRS’ Investment Properties Group (IPG) & National Net Lease Group (NNLG) is a unified platform of seasoned net lease professionals located and transacting nationally with all underwriting and marketing efforts strategically located in Southern California. In 2021, the group completed more than 899 sales across more than 49 states and has over 160 brokerage professionals nationally. From proactive sales to targeted acquisitions and tailored debt and equity solutions, SRS’ National Net Lease Group offers comprehensive services to net lease owners and investors. Superior speed-to-market, world-class marketing materials, a deep investor database and unparalleled retail submarket intelligence from the entire SRS platform allow SRS’ National Net Lease Group to deliver the best possible returns. For more information, please visit srsnnlg.com.
Darcie Giacchetto
The Spaulding Agency
949.278.6224
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