mercy one - family & internal medicine · 2020. 9. 1. · 30445 northwestern highway, suite 275...

30445 Northwestern Highway, Suite 275Farmington Hills, MI 48334248.254.3410

522 N HANCOCK ST, OTTUMWA, IA 52501

5% RENT ESCALATIONS EVERY 3 YEARS!

MERCY ONE - FAMILY & INTERNAL MEDICINE

DAN LEWKOWICZSENIOR ADVISOR

D: [email protected]

http://fortisnetlease.com/


DAN LEWKOWICZ | 248.419 .3882 | [email protected] DISCLAIMER // 2

DISCLOSURE :

All materials and information received or derived from Fortis Net Lease (hereinafter collectively referred to as “FNL”), its directors, officers, agents, advisors,affiliates and/or any third party sources are provided without representation or warranty by FNL its directors, officers, agents, advisors, or affiliates as to com-pleteness, veracity, or accuracy, condition of the property, compliance or lack of compliance with applicable governmental requirements, suitability, financialperformance of the property, projected financial performance of the property for any party’s intended use or any and all other matters.

Neither FNL its directors, officers, agents, advisors, or affiliates makes any representation or warranty, express or implied, as to accuracy or completeness of theany materials or information provided, derived, or received. Materials and information from any source, whether written or verbal, that may be furnished for revieware not a substitute for a party’s active conduct of its own due diligence to determine these and other matters of significance to such party. FNL will notinvestigate or verify any such matters or conduct due diligence for a party unless otherwise agreed in writing.

ALL PARTIES SHALL CONDUCT THEIR OWN INDEPENDENT INVESTIGATION AND DUE DILIGENCE:

Any party contemplating or under contract or in escrow for a transaction is urged to verify all information and to conduct their own inspections and investigationsincluding through appropriate third party independent professionals selected by such party.

All financial data should be verified by the party including by obtaining and reading applicable documents and reports and consulting appropriate independentprofessionals. FNL makes no warranties and/or representations regarding the veracity, completeness, or relevance of any financial data or assumptions. FNL doesnot serve as a financial advisor to any party regarding any proposed transaction. All data and assumptions regarding financial performance, including that used forfinancial modeling purposes, may differ from actual data or performance. Any estimates of market rents and/or projected rents that may be provided to a party donot necessarily mean that rents can be established at or increased to that level. Parties must evaluate any applicable contractual and governmental limitations aswell as market conditions, vacancy factors and other issues in order to determine rents from or for the property.

Legal questions should be discussed by the party with an attorney. Tax questions should be discussed by the party with a certified public accountant or taxattorney. Title questions should be discussed by the party with a title officer or attorney. Questions regarding the condition of the property and whether theproperty complies with applicable governmental requirements should be discussed by the party with appropriate engineers, architects, contractors, otherconsultants and governmental agencies. All properties and services are marketed by FNL in compliance with all applicable fair housing and equal opportunity laws.

DAN LEWKOWICZSENIOR ADVISORD: [email protected]

STEVE MOORESTEVE MOORE REAL ESTATE

803 GRANT CTMQUOKETA, IA 52060

319.530.2916

EXCLUSIVELY L ISTED BY: STATE BROKER OF RECORD:

522 N HANCOCK ST, OTTUMWA, IA 52501MERCY ONE MEDICAL OFFICE BUILDING

mailto:[email protected]


https://buildout.com/website/704487-sale?tab=map

DAN LEWKOWICZ | 248.419 .3882 | [email protected] INVESTMENT OFFERING // 3

INVESTMENT SUMMARY

List Price: $11,750,000

Current NOI: $807,104.55

Initial Cap Rate: 6.87%

Avg Cap Rate (Initial Term): 7.12%

Land Acreage: 5.10 Acres

Year Built 2017

Building Size: 31,607 SF

Price PSF: $371.75

Lease Type: Absolute NNN

Initial Lease Term: 10 Years

INVESTMENT OFFERINGFortis Net Lease is proud to present this exclusive new-to-market Mercy One MedicalOffice Building located in Ottumwa, IA only 85 Miles South East Of Des Moines. Thisbuilt to suit asset is strategically located near US-34 and S Wapello St whichcumulatively see in excess of 62,000 vehicles per day. The tenant has occupied thissite since it was constructed exclusively for their use in 2017 and has over 7 yearsremaining on its original 10 year term.

This property is encumbered by an absolute NNN lease with NO landlord obligationswhatsoever. This lease has built in rental escalations of 5% every 3 years during theinitial term and during the 3 (five year) option periods.

The subject offering represents an ideal opportunity for a 1031 exchange buyer or anindependent investor seeking the passive income of an absolute NNN leased medicaloffice building from a well established tenant. This investment will offer a new ownercontinued success due to the strength of the tenant and guarantor, as well the primelocation and visibility of the asset and its essential nature in today's world.

PRICE $11,750,000

CAP RATE 6.87%

LEASE TYPE Absolute NNN

TERM REMAINING 7+ Years

INVESTMENT HIGHLIGHTS• Absolute NNN | ZERO Landlord Responsibilities

• 2017 Built-To-Suit Construction

• 5% Rental Escalations Every Three Years

• 7+ Years Remaining On Original 10 Year Term

• 3-Mile Population Is Nearly 30,000 Residents

• 6.74% Average Cap Rate (07/2020 - 07/2027) At List Price

• Lease Guaranteed By Mercy Clinics, Inc. A Subsidiary Of Mercy OneWhich Has 420+ Locations and 20,000+ Employees

• Mercy One Is The Largest Healthcare System In Iowa





DAN LEWKOWICZ | 248.419 .3882 | [email protected] PROPERTY & LEASE // 4

LEASE SUMMARYTenant: Mercy One Medical Office Building

Lease Type: Absolute NNN

Primary Lease Term: 10 Years

Annual Rent: $807,104.55

Landlord Responsibilities: NONE

Taxes, Insurance & CAM: TENANT

Roof, Structure & Parking: TENANT

Lease Start Date: July 1st, 2017

Lease Expiration Date: June 20th, 2027

Lease Term Remaining: 7+ Years

Rent Bumps: 5% Every 3 Years

Renewal Options: 3 (Five Year) Options

Lease Guarantor: Mercy Clinics, Inc

Lease Guarantor Strength: Corporate

Tenant Website: www.mercyone.org

Year Built: 2017

Lot Size: Confirm With Seller

Building Size: 31,607 SF

Zoning: Commercial

Construction Style: Masonry

INCOME PER SF

Gross Income $807,104.55 $25.54

EXPENSE PER SF

Gross Expenses - -

NET OPERATING INCOME $807,104.55 $25.54

FINANCIAL SUMMARY

PROPERTY SUMMARY





Company: Mercy One

Founded: 1998

Total Revenue: $3B+

Patient Visits: 3.3M+

Number Of Employees: 20,000+

Number Of Locations: 420+

Headquarters: Des Moine, Iowa

Website: www.MercyOne.org

OVERVIEW

• 91,000+ Annual Hospital Stays

• 10,000+ Newborns Delivered Annually

• 25 Affiliated Hospitals And 18 Owned Or Joint Venture Medical Centers

• 420+ Care Locations

• Collaboration Between Catholic Health Initiatives And Trinity Health - Two Of

The Country's Foremost Not-For-Profit Catholic Health Organizations

TENANT HIGHLIGHTS

YEAR DATE ANNUAL RENT MONTHLY RENT BUMP YIELD

1-3 7/1/2017 $768,671.00 $64,055.92 - 6.54%

4-6 7/1/2020 $807,104.55 $67,258.71 5% 6.87%

7-9 7/1/2023 $847,459.78 $70,621.65 5% 6.7.21%

10 7/1/2026 $889,832.77 $74,152.73 5% 7.57%

Option 1 7/1/2027 $889,832.77 $74,152.73 - 7.57%

7/1/2029 $934,324.41 $77,860.37 5% 7.97%

Option 2 7/1/2032 $981,040.63 $81,753.39 5% 8.35%

7/1/2035 $1,030,092.66 $85,841.06 5% 8.77%

Option 3 7/1/2037 $1,030,092.66 $85,841.06 - 8.77%

7/1/2038 $1,081,597.29 $90,133.11 5% 9.21%

7/1/2041 $1,135,677.15 $94,639.76 5% 9.67%

RENT SCHEDULE

MercyOne is a connected system of health care facilities and services dedicatedto helping people and communities live their best lives. MercyOne was foundedin 1998 through a collaboration between Catholic Health Initiatives (nowCommon Spirit Health) and Trinity Health – two of the country’s foremost,not-for-profit Catholic health organizations. The system’s more than 420 clinics,medical centers, hospitals and care locations are located throughout the stateof Iowa and beyond. Today, the nonprofit health system generates more than $3billion in combined revenue and employs more than 20,000 colleagues.

TENANT PROFILE

DAN LEWKOWICZ | 248.419 .3882 | [email protected] TENANT PROFILE // 5





DAN LEWKOWICZ | 248.419 .3882 | [email protected] PROPERTY PHOTOS // 6






DAN LEWKOWICZ | 248.419 .3882 | [email protected] LOCATION MAPS // 18




DAN LEWKOWICZ | 248.419 .3882 | [email protected] TRAFFIC COUNT // 19





DAN LEWKOWICZ | 248.419 .3882 | [email protected] RETAIL AERIAL // 20





DAN LEWKOWICZ | 248.419 .3882 | [email protected] AREA & DEMOGRAPHICS // 23

POPULATION 1 MILE 3 MILES 5 MILES

Total Population 2020 6,509 23,997 27,812

Average Age 37.8 39.0 39.4

# Of Persons Per HH 2.4 2.4 2.4

HOUSEHOLDS & INCOME 1 MILE 3 MILES 5 MILES

Total Households 2,704 9,935 11,392

Average HH Income $44,546 $52,422 $55,513

Median House Value $58,327 $72,563 $79,866

Total Health Care Spending $3,162,000 $12,792,000 $15,185,000

Ottumwa is a city in and the county seat of Wapello County, Iowa, United States.The population was 25,023 at the 2010 U.S. Census. Located in the state'ssoutheastern section, the city is split into northern and southern halves by theDes Moines River. Ottumwa is a Main Street community with a revitalizeddowntown district, anchored by a Public Library, City Hall, and CountyCourthouse all part of the National Register of Historic Places.

A number of sizable developments have spurred a great deal of additionalcommercial interest in Ottumwa. Locally owned businesses, as well as nationalcorporations continue investing in the community through expansion and/or theopening of new facilities in Ottumwa. The expanding commercial districts andindustrial base make Ottumwa a strong, viable, and growing community. Throughprogressive partnerships between City government and private business andindustry, Ottumwa is looking forward to an era of continued growth.





DAN LEWKOWICZSENIOR ADVISOR

D: [email protected]

30445 Northwestern Highway, Suite 275Farmington Hills, MI 48334248.254.3410fortisnetlease.com

EXCLUSIVELY L ISTED BY:

TOTAL SALES VOLUME PROPERTIES SOLD BROKER & BUYER REACH STATES SOLD IN

$6B 3,000+ 345K 43

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mercy one - family & internal medicine · 2020. 9. 1. · 30445 northwestern highway, suite 275...

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