METROHEALTH OUTPATIENT SURGERY CENTER & MERCY MEDICAL CENTER HARRISON EXECUTIVE SUMMARY

Similar documents
NET LEASE INVESTMENT OFFERING. ATI Physical Therapy 4765 Jackson Road Ann Arbor, MI 48103

Educational Management Corp Chef s Academy

FORT HAYS STATE UNIVERSITY AT DODGE CITY

Name in full: Last First Middle. Telephone: Day Evening Social Security No.: Internship: Dates of Start and Completion. Name and Address of Hospital:

BHA 4053, Financial Management in Health Care Organizations Course Syllabus. Course Description. Course Textbook. Course Learning Outcomes.

Northern Kentucky University Department of Accounting, Finance and Business Law Financial Statement Analysis ACC 308

2016 Match List. Residency Program Distribution by Specialty. Anesthesiology. Barnes-Jewish Hospital, St. Louis MO

AnMed Health Family Medicine Residency Program Curriculum and Benefits

MetroHealth Giving Advancing the excellence and charitable mission of MetroHealth

Loyola University Chicago ~ Archives and Special Collections

2. Related Documents (refer to policies.rutgers.edu for additional information)

FACTS. & Figures. University of Pennsylvania School of Medicine University of Pennsylvania Health System

University of Central Florida Board of Trustees Finance and Facilities Committee

RETAIL SECTOR CONTINUES SLOW RECOVERY AFTER A HARSH WINTER

Business Finance 3400 Introduction to Real Estate Autumn Semester, 2017

Alyson D. Stover, MOT, JD, OTR/L, BCP

IN-STATE TUITION PETITION INSTRUCTIONS AND DEADLINES Western State Colorado University

Innovating Toward a Vibrant Learning Ecosystem:

San Antonio Breast Cancer Symposium

UIC HEALTH SCIENCE COLLEGES

Len Lundstrum, Ph.D., FRM

DEPARTMENT OF FINANCE AND ECONOMICS

Financing Education In Minnesota

Master of Science in Taxation (M.S.T.) Program

Intellectual Property

Update on Psychology

GUIDELINES FOR COMBINED TRAINING IN PEDIATRICS AND MEDICAL GENETICS LEADING TO DUAL CERTIFICATION

MMOG Subscription Business Models: Table of Contents

Welcome. Paulo Goes Dean, Eller College of Management Welcome Our region

Mayo School of Health Sciences. Clinical Pastoral Education Residency. Rochester, Minnesota.

MEDICAL COLLEGE OF WISCONSIN (MCW) WHO WE ARE AND OUR UNIQUE VALUE

Texas Healthcare & Bioscience Institute

Question No: 1 What must be considered with completing a needs analysis for a family saving for a child s tuition?

Financing Public Colleges and Universities in an Era of State Fiscal Constraints

CLINICAL TRAINING AGREEMENT

REGULATION RESPECTING THE TERMS AND CONDITIONS FOR THE ISSUANCE OF THE PERMIT AND SPECIALIST'S CERTIFICATES BY THE COLLÈGE DES MÉDECINS DU QUÉBEC

Our visiting specialists bring their expertise to you!

Examining the Structure of a Multidisciplinary Engineering Capstone Design Program

Pediatric Wheelchair Seating

Student Admissions, Outcomes, and Other Data

Curriculum Vitae Sheila Gillespie Roth Address: 224 South Homewood Avenue Pittsburgh, Pennsylvania Telephone: (412)

Department of Legal Assistant Education THE SOONER DOCKET. Enroll Now for Spring 2018 Courses! American Bar Association Approved

Longitudinal Integrated Clerkship Program Frequently Asked Questions

E35 RE-DISCOVER CAREERS AND EDUCATION THROUGH 2020

School of Medicine Finances, Funds Flows, and Fun Facts. Presentation for Research Wednesday June 11, 2014

BLACKBOARD & ANGEL LEARNING FREQUENTLY ASKED QUESTIONS. Introduction... 2

Partnership Agreement

FAQ (Frequently Asked Questions)

JUNE 15, :30 PM 9:15 PM

4.0 CAPACITY AND UTILIZATION

Fulltime MSc Real Estate and MSc Real Estate Finance Programmes: An Introduction

The Ohio State University Library System Improvement Request,

Executive Guide to Simulation for Health

Qs&As Providing Financial Aid to Former Everest College Students March 11, 2015

Surgical Residency Program & Director KEN N KUO MD, FACS

Capital Budgeting 1. Syllabus

Trends in Student Aid and Trends in College Pricing

SUNY Downstate Medical Center Brooklyn, NY

ATHLETIC TRAINING SERVICES AGREEMENT

Instrumentation, Control & Automation Staffing. Maintenance Benchmarking Study

FACILITIES & FINANCING: THE GOOD, THE BAD, AND THE UGLY... Jennifer Afdahl Rice Jonathan Dean, Ed. D. David Sciaretta, Ed. D.

School of Economics & Business.

26 th Annual Conference and Exposition January 28, 2017 The City Centre Sheraton Hotel Indianapolis, Indiana

COMMUNITY VITALITY DIRECTOR

ARKANSAS TECH UNIVERSITY

Innovation of communication technology to improve information transfer during handover

Improving recruitment, hiring, and retention practices for VA psychologists: An analysis of the benefits of Title 38

THE PROVISIONS OF THIS TRANSFER GUIDE DO NOT CONSTITUTE A CONTRACT, EXPRESSED OR IMPLIED, BETWEEN ANY APPLICANT OR STUDENT AND DEVRY UNIVERSITY.

LEN HIGHTOWER, Ph.D.

Programme Specification. MSc in International Real Estate

Curriculum Vitae of. JOHN W. LIEDEL, M.D. Developmental-Behavioral Pediatrician

Communities in Schools of Virginia

Pathways to Health Professions of the Future

Global Television Manufacturing Industry : Trend, Profit, and Forecast Analysis Published September 2012

Mayo School of Health Sciences. Clinical Pastoral Education Internship. Rochester, Minnesota.

Friday, October 3, 2014 by 10: a.m. EST

LIVE MUSIC RETAIL EST atlanta dairies CREATIVE OFFICE RESTAURANTS 777 MEMORIAL DR.

UNIVERSITY OF ALABAMA AT BIRMINGHAM. IPEDS Completions Reports, July 1, June 30, 2016 SUMMARY

For the Ohio Board of Regents Second Report on the Condition of Higher Education in Ohio

ALAMO CITY OPHTHALMOLOGY

FREQUENTLY ASKED QUESTIONS

About the College Board. College Board Advocacy & Policy Center

The Isett Seta Career Guide 2010

Tools to SUPPORT IMPLEMENTATION OF a monitoring system for regularly scheduled series

Is College Worth It? Understanding The Costs And Benefits of College

Core Strategy #1: Prepare professionals for a technology-based, multicultural, complex world

ESC Declaration and Management of Conflict of Interest Policy

Ohio ACEP Your Essential Resource for Emergency Medicine Board Review Comprehensive. Relevant. Essential.

SHEEO State Authorization Inventory. Kentucky Last Updated: May 2013

THE COLLEGE OF WILLIAM AND MARY IN VIRGINIA INTERCOLLEGIATE ATHLETICS PROGRAMS FOR THE YEAR ENDED JUNE 30, 2005

THE ECONOMIC AND SOCIAL CONTRIBUTION OF THE UNIVERSITY OF NEBRASKA TO THE STATEWIDE ECONOMY

Like much of the country, Detroit suffered significant job losses during the Great Recession.

PROGRAM REQUIREMENTS FOR CLINICAL FELLOWSHIP TRAINING IN GENERAL COSMETIC SURGERY

Kendriya Vidyalaya Sangathan

FRED DOUGLAS MASON III

Basic Standards for Residency Training in Internal Medicine. American Osteopathic Association and American College of Osteopathic Internists

An Introduction to School Finance in Texas

21 st Century Apprenticeship Models

CAMP 4:4:3. Supplemental Tools

1. Amend Article Departmental co-ordination and program committee as set out in Appendix A.

Transcription:

METROHEALTH OUTPATIENT SURGERY CENTER & MERCY MEDICAL CENTER HARRISON EXECUTIVE SUMMARY

2 THE OFFERING Holliday Fenoglio Fowler, L.P. ( HFF ), has been retained on an exclusive basis with respect to the disposition of the MetroHealth Outpatient Surgery Center & Mercy Medical Center Harrison, which consists of two medical office buildings (individually, the Property, MetroHealth Outpatient Surgery Center or Mercy Medical Center Harrison, and collectively the Properties ) located in the greater Cleveland and Cincinnati, Ohio metropolitan areas. The Properties total 70,002 rentable square feet and are 100% leased. Both assets are leased or guaranteed by investment grade health systems, MetroHealth (Moody s A3) and Mercy Health (Moody s Aa3). The Properties are high quality, single-tenant medical office buildings, that benefit from strategic locations. Further, the tenants have exhibited a commitment to these locations, demonstrated by continuous use and occupancy for the past 20 years. The Properties are currently 100% net leased with a weighted-average lease term of over five years as of 7/1/2017. Of note, the earliest expiration date between the two Properties is not until May 2021, providing stable cash flow with annual base rent increases. This allows an investor to build relationships with each health system and pursue lease renewal discussions to further increase each system s outpatient footprint in their respective market for years to come. The acquisition of the Properties provides an investor with the opportunity to invest in two facilities that are fully leased under triple net leases, are affiliated with strong credit health systems, and are strategically located in outpatient settings where healthcare is the largest employment sector in its respective market. The Properties are being offered free and clear of any debt and Property management services.

3 PORTFOLIO HIGHLIGHTS HIGHLIGHTS OF THE INVESTMENT OPPORTUNITY INCLUDE: STRONG OCCUPANCY The Properties are both 100% leased to dominant market-leading health systems. INVESTMENT-GRADE CREDIT & HEALTH SYSTEM TENANCY Mercy Health and MetroHealth are both investmentgrade credit, featuring Moody s credit ratings of Aa3 and A3 respectively. NATIONALLY RECOGNIZED MEDICAL SPECIALTIES Specialties include a nationally-accredited breast center, two ambulatory surgery centers, anesthesia pain management, audiology, ENT, imaging, laboratory, advanced MRI, neurosciences, OBGYN, ophthalmology, optometry, orthopaedics, physical medicine and rehab, physical and occupational therapy, radiology, surgical oncology, and urology. HISTORICAL OPERATING PERFORMANCE Mercy Health and MetroHealth have demonstrated permanence at their respective locations with a weighted average historical occupancy of almost 20 years. DYNAMIC HEALTHCARE-ANCHORED ECONOMIES Both Cleveland and Cincinnati heavily rely on the healthcare industry, as the two largest employers in the Cleveland MSA are health systems, while four of the ten largest employers in Cincinnati are in the healthcare sector. NEWLY EXECUTED LEASE EXTENSIONS MetroHealth completed their expansion objective by leasing the last remaining space at MetroHealth Outpatient Surgery Center as of June 2014. CONTRACTUAL RENT GROWTH All leases at Mercy Medical Center Harrison & MetroHealth Outpatient Surgery Center, are subject to contractual annual rent increases of 2% and 2.5%, respectively. TRIPLE NET LEASES All in-place leases at the Properties are structured as NNN.

4 TOLEDO CLEVELAND 80 AKRON 76 OHIO 77 77 COLUMBUS 70 70 DAYTON HARRISON CINCINNATI

5 PROPERTY OVERVIEW Name Address MetroHealth Outpatient Surgery Center 4330 W. 150th St, Cleveland, OH TENANCY OVERVIEW Since 1837, The MetroHealth System (Moody s A3) has provided Clevelanders with medical care across all levels of severity. Today, MetroHealth is an integrated health system with an acute care hospital housing a Level I Adult Trauma and Burn Center, a skilled nursing facility and more than 26 locations throughout Cuyahoga County with more on the way. Annually, they handle more than one million patient visits including more than 100,000 in the Emergency Department, one of the busiest in the country. Located just 10 minutes from the 520-bed MetroHealth Medical Center campus, the Property has been a convenient outpatient surgery center for the surrounding community since 1999. Additionally, a great number of the patients who seek medical attention at the Property are directly referred from the main hospital campus due its close proximity. The System has incorporated a wide array of clinical services and surgical specialties since they first opened solely as a sugery center. Such specialties include audiology, dental surgery, ENT, general surgery, OBGYN, occupational medicine, orthopedics, pain management, plastic surgery, podiatric surgery, spine center, urogynecologic surgery, urology, and more. Size (Sq Ft) 33,368 % Leased 100% Year 1 NOI $377,806 On/Off Campus Off Year Built 1984 # of Stories 2 Ownership Fee Simple LEASING SUMMARY In-Place Rent $11.28 Weighted Avg Lease Term 4.0 Years Rent Escalations 2.5% per annum Anchor Tenant The MetroHealth System (Moody's A3) % of GLA 100%

6 PROPERTY OVERVIEW Name Address Mercy Medical Center Harrison 10450 New Haven Road, Harrison, Ohio TENANCY OVERVIEW With the first Sisters of Mercy dating back to 1831, Mercy Health (Moody s Aa3) is a Catholic ministry, not-for-profit healthcare system serving Ohio and Kentucky. It is one of the largest not-for-profit health systems in the US, the largest health system in the state of Ohio, and the fourth largest employer in Ohio with more than 34,000 employees. Mercy Health is the largest provider of Medicaid services in Ohio offering $321 million in charity care in 2015. Mercy Health, one of the top 15 health systems in the United States according to Truven Analytics, has been treating residents of the greater northwest Cincinnati area at the Property for over 20 years. The Property is located on a 5.08 acre site along New Haven Road, the main thoroughfare for residents of Harrison and New Haven to I-74, providing easy access to Greater Cincinnati and throughout the CBD. Mercy Medical Center Harrison offers a wide variety of medical specialties including a 24-hour Emergency Care center for non-life threatening aliments. Other medical services offered at the Property include imaging, laboratory, occupational health, physical therapy, radiology, and surgical care. Size (Sq Ft) 36,634 % Leased 100% Year 1 NOI $426,068 On/Off Campus Off Year Built 1995 # of Stories 1 Ownership Ground Leased LEASING SUMMARY In-Place Rent $11.76 Weighted Avg Lease Term 5.4 Years Rent Escalations 2% per annum Anchor Tenant Mercy Health (Moody's Aa3) % of GLA 100%

7 CONTACTS INVESTMENT SALES PHIL MAHLER Managing Director 312.300.7319 pmahler@hfflp.com ANTHONY FROGAMENI Associate Director 407.284.3913 afrogameni@hfflp.com MATT DICESARE Analyst 312.300.7305 mdicesare@hfflp.com FINANCING JASON BOND Director 312.980.3608 jbond@hfflp.com HFF CHICAGO 181 West Madison Street Suite 3900 Chicago, IL 60602 P: (312) 528-3650 F: (312) 528-3651 CHRISTINE M. RINTI OH Lic. #BRK.2007002489 203.331.7673 chris129@optonline.net HFF has been engaged by the owner of the property [properties] to market it [them] for sale. Information concerning the property [properties] described herein has been obtained from sources other than HFF, and neither Owner nor HFF, nor their respective equity holders, officers, employees and agents makes any representations or warranties, express or implied, as to the accuracy or completeness of such information. Any and all reference to age, square footage, income, expenses and any other property specific information are approximate. Any opinions, assumptions, or estimates contained herein are projections only and used for illustrative purposes and may be based on assumptions or due diligence criteria different from that used by a purchaser, and HFF, its partners, officers, employees and agents disclaim any liability that may be based upon or related to the information contained herein. Prospective purchasers should conduct their own independent investigation and rely on those results. The information contained herein is subject to change. Holliday Fenoglio Fowler, L.P., HFF Real Estate Limited (collectively, HFF ), HFF Securities L.P. and HFF Securities Limited (collectively, HFFS ) are owned by HFF, Inc. (NYSE: HF). HFF and its affiliates operate out of 24 offices and are a leading provider of commercial real estate and capital markets services to the global commercial real estate industry. HFF, together with its affiliates, offers clients a fully integrated capital markets platform including debt placement, investment sales, equity placement, funds marketing, M&A and corporate advisory, loan sales and loan servicing. For more information please visit hfflp.com or follow HFF on Twitter @HFF.