Everest Medical Properties Announces West Central Medical Center Offering
Scottsdale, AZ—March 25, 2016
Everest West Central LLC, a wholly owned subsidiary of Everest Medical Core Properties acquired the property on March 25th, 2016 and will recapitalize the equity in the asset over the next six weeks. The total equity required for this transaction is $1,000,000, of which Everest plans to retain $100,000. The initial equity closing is targeted for April 15th, and the final equity closing is targeted for May 13th. The total acquisition cost is approximately $4.9 million.
The property consists of a fee interest in approximately 3.22 acres of land and two medical office buildings located in Delaware, OH. The buildings contain approximately 24,730 RSF and are currently 86% leased and occupied to established medical practices through NNN leases with approximately 39% of total rentable space leased to OhioHealth (Aa2, AA-). West Central’s weighted average lease expiration is in excess of 4.5 years.
The projected 5-year net-to-investor IRR is 20.2% under base case assumptions.
Key Deal Points
- No execution risk: The property was acquired on March 25th.
- Attractive basis and below-market existing rents: The property was acquired for $182/SF. At an average of $17.10/SF NNN, current in-place rents are 19% below its competitive set.
- Close proximity to hospital anchor: West Central Medical Center is located 0.2 miles from Grady Memorial Hospital, which is owned and operated by OhioHealth System (Aa2, Aa-).
- Stabilized, with credit tenancy: The property is 86% occupied, with OhioHealth and its affiliates occupying 39% of the leasable space.
- Highly experienced team: Over 100 years of combined Principal commercial real estate and finance experience with major companies including AIG, ING Clarion, Avalon Bay, Accenture, Cole Capital, and United Health Group.
For more information on Everest Medical Core Properties and this offer, visit www.everestmcp.com/properties or www.crowdstreet.com/westcentralmedical or contact us at email@example.com.
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.