Multi Tenant Medical Building | Fully Leased | New Roof | Sub $200 PSF | 7.5% Cap Rate

Highlights:

• Below Replacement Cost Priced at under $200 per square foot, this property presents investors with the advantage of acquiring the asset for less than half of the replacement cost, allowing them to benefit from a low barrier to entry while still experiencing the upside of investing in healthcare real estate. Investment.
• Major Road Frontage Located directly on Enterprise Road, a roadway that runs through the city’s core and hosts numerous other medical practices, the property sees over 17,000 vehicles per day, making it easily accessible and identifiable for patients within the community.
• New Roof Installed in Q2 of 2024, the property features a new roof, minimizing the need for day-one capital expenditure investment and benefiting an investor’s cash flow and overall return.
• Easily Retenantable Divided into small (1,000 – 3,000 sq. ft.) spaces, the property structure provides investors with a tenant-friendly asset that can be re-tenanted by a wide range of medical users.
• Passive Lease Structure With four of the five tenants on net lease structures, the property offers a passive structure that provides owners with an easy-to-manage asset and predictable cash flow.
• Replaceable Rents With rents at the subject property ranging from $4 to $8 below market, owners can benefit from the security of the return, with a high likelihood of easily replaceable rents.
• Tenant Commitment The five tenants have a combined operating history at the site of over 50 years. Additionally, three of the five have committed within the last six months to multi-year lease extensions.
• Practice Investment The two longest-standing tenants have recently partnered with larger practice aggregators. This not only strengthens the tenant base through the presence of quality national and regional tenants but also signifies a long-term commitment to the site.
• Annual Increases All five of the leases incorporate 2% or 3% annually compounding rental increases, offering investors a robust hedge against inflation and an increasing average annual return throughout ownership.
• Florida Real Estate Located in the “Sunshine State,” the property benefits from strong real estate fundamentals and its Florida location. Florida, the third most populous state in the U.S. and one of the fastest-growing, increases the probability of buyer demand with no state income tax during ownership.
• Affluent Area With an average household income of roughly $140k within a 1-mile radius, the immediate area provides the practices at this location with a cash-positive patient base, increasing the likelihood that the practices run profitably and thereby enhancing the security of the investment.
• Primed for Growth DeBary’s population is set to grow over 35% in the coming years. To support this growth, the city is master planning an urban core featuring over 700 apartments/townhouses, restaurants, bars, and living spaces. The expected growth will further increase the need for services provided at this site.
• Hospital Proximity The property is strategically located less than 1.5 miles from AdventHealth Fish Memorial, a 250+ bed hospital that was recently expanded to cater to the growing community.

Description:

Matthews Real Estate Investment Services is pleased to present to qualified investors an opportunity to acquire a prime medical property strategically located just 1.5 miles from AdventHealth Fish Memorial Hospital. Situated in DeBary, a city projected to grow by over 35% in the coming years, this property is nestled in an affluent area with an average household income of $140k within a 1-mile radius. This high-income demographic helps to provide a cash-positive patient base, increasing the likelihood of profitable practices and securing the investment.

The property features a new roof installed in Q2 2024 and is divided into small, easily rentable spaces (1,000 – 3,000 sq. ft.), making it an attractive, tenant-friendly asset. Priced at under $200 per square foot, it offers investors the advantage of acquiring the asset for less than half the replacement cost. Located on Enterprise Road, which sees over 17,000 vehicles daily, the property is highly visible and easily accessible. With four of the five tenants on net lease structures and a combined operating history of over 50 years, the property offers a passive investment structure with predictable cash flow and tenants committed to the location.

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