Investment Summary:
Recently completed medical office building in the San Antonio Medical Center. It is 100% occupied by a variety of medical practices and an integral part of the Methodist Healthcare campus. (The Methodist Healthcare system is one of the most prestigious healthcare providers in the U.S.) San Antonio, Texas is the seventh largest city in the U.S. and is participating in the consistent population and economic growth Texas has enjoyed for the past several years. The demand for medical services reflects this growth assuring sustainable, high quality cash flows for medical facilities including the building on offer.
Specifications:
+/- 66,857 square feet/+/- 6,211 square meters
Land area 0.349 acres/+/- 1,412 square meters (99 year pre-paid ground lease executed
2015)
Methodist Healthcare occupies 30,872 square feet/2,868 square meters of the building.
Methodist Healthcare (San Antonio) website: https://www.joinmethodist.com/.
Rent income: 1,571,688 per year; annual increases between 2 and 3%.
Lease expirations between December 2026 and May 2034.
Triple Net Leases – tenants pay all expenses including taxes, insurance and maintenance.
Price: $30 million.
Cap Rate: 5.24%.
Reasons for investing in medical facilities:
Consistent and growing demand for medical services.
Non-hospital medical buildings are an integral part of the U.S. healthcare delivery model.
They provide office space for medical practices, testing services, and outpatient
procedures.
Minimal remote work issues unlike office properties.
Stable, high quality revenue sources for the tenants: U.S. government and investment
grade insurance companies that provide medical insurance.
Ideal for passive investors who want exposure to the U.S. real estate market.
