Top Georgia Health System Surgery Center | NNN Leases | Annual Increases | Hospital Adjacent

Highlights:

• VALUABLE LOCATION FOR NORTHSIDE | By restricting the number of new facilities, CON laws can create a limited market for these centers. This can lead to higher patient volumes and, consequently, greater revenue potential for existing surgery centers, making them more attractive investment opportunities.
• SPECIALIZED BUILD OUT | Healthcare real estate is a highly sought-after investment as it tends to be more resistant than other asset classes. Surgery centers offer a stickier tenancy because of the longer build-out process and higher costs. Both tenants have a long operating history at this location and have put in a great deal of TI over time.
• PASSIVE LEASE STRUCTURE | Both tenants are on NNN leases, making this an ideal investment property for an owner looking for a more hands-off, passive income opportunity.
• GROWING CASHFLOW | Annual increases of 2% and 3% are included for each tenant respectively, causing an annual increase in cashflow for an investor, securing a growing return of investment dollars.
• NORTHSIDE HOSPITAL | Recognized as a health system powerhouse in the state, Northside Hospital serves 25 counties, with over 300 outpatient facilities serving more than 5.3 million patients each year. Northside is at the forefront of medical innovation, with breakthroughs in academic medical research and utilizing state-of-the-art technology to bring the latest diagnostics
• GEORGIA UROLOGY | Georgia Urology is the largest urology practice in the state and is also physician-owned. With over 30 locations and 60+ providers, GU is consistently recognized as a top performer in the space winning Best Urology Practice in 2023.
• ADVANTAGEOUS RETURN | At an 8% cap rate, this investment provides an attractive cash flow and highly favorable return during a charged interest rate environment.
• HOSPITAL PROXIMITY | This location is near 2 popular hospitals in Atlanta. Less than a mile from Emory Decatur Hospital, a 451-bed acute care facility, and 3 miles from both the number 1 ranked hospital in Atlanta, Emory University Hospital, as well as the Joseph Maxwell VA Medical Center. Being near these facilities allows for patient referrals and collaboration.
• ATLANTA MSA | This asset sits within a population-dense area of the Atlanta MSA with over 324k residents in a 5-mile radius. Being only eight miles from downtown, this area also benefits from a strong presence of national tenants such as Kroger, Wendy’s, and Whole Foods

Description:

Matthews Real Estate Investment Services is pleased to offer an opportunity to invest in a multi-tenant surgery center leased to two highly ranked groups in the healthcare space located in Atlanta. Georgia Urology is the largest urology practice in the state with over 30 locations while Northside Hospital is one of the state’s largest health systems with over 300 locations and consistently voted as a top health system in the state. This asset is priced below replacement costs and includes very sticky tenants with its specialized build out for urological care and treatments of all ages. This surgery center sits within the population-dense area of Decatur, taking advantage of the population growth and proximity to both Emory University Hospital and Emory Decatur, an acute care Hospital less than a mile out. Priced at an 8% cap rate, investors can look for an above market returnon this deal that includes NNN leases and a certificate of need (CON) with Northside, adding to this location’s attractiveness.

Documents: