Everest Medical Properties Acquires Fort Wright Medical Center
Fort Wright Center contains approximately 117,000, of which 60% is leased to The Christ Hospital. The building was constructed in 1995 and underwent extensive renovation in 2012.
Fort Wright was purchased for its in-place cash flow and occupancy, allowing for the upside of leasing the 35% currently vacant space. WestEv Fort Wright, LLC bought the current NOI at a 6.7% going-in cap rate and projects a 12% stabilized yield.
“We are pleased to have developed a deep pipeline of off-market and limited market high-quality medical office buildings,” said David Lynn, Ph.D., CEO of Everest Medical Core Properties. “Fort Wright Center is a great addition to our growing portfolio of institutional-quality medical commercial properties.”
Key Deal Highlights
- The property is strategically located off of I-71/75 with substantial visibility (140,000 cars/day).
- Credit tenancy: Since 2012, The Christ Hospital, an investment grade rated tenant (A3/A-/A-), has expanded twice and invested significant capital into their leased space.
- WestEv Fort Wright, LLC is acquiring this property for $112/SF, which compares favorably to a recent comparable sales average close to $200/SF.
- Below-market rents: At an average just above $13/SF net, Fort Wright Center’s in-place rents are well below its competitive set.
- Leasing opportunity: The property was conservatively underwritten, with five years to complete lease-up and stabilization.
- Ideal tenant uses include urgent care, dialysis, general medicine, occupational therapy, rehabilitation, oral/plastic/orthopedic surgery, dermatology and wellness.
Extensive renovation of the property was completed in 2012 and the property has ample parking to accommodate lease-up
About Everest Healthcare Properties
Everest Healthcare Properties is an institutional real estate manager focusing on medical real estate properties across the United States. Its mission is to provide high current and total returns to institutional investors by acquiring and adding value to high-quality healthcare properties. The Everest team has significant institutional quality real estate experience with firms such as Cole Real Estate Investments, ING/Clarion, AIG Real Estate, Simon Properties, Principal Financial and Healthcare Trust of America. For more information on Everest Healthcare Properties, please visit www.everesthealthcareproperties.com or contact us at firstname.lastname@example.org.