Middleton, WI - University of Wisconsin Health ZCF

Description:

SRS National Net Lease Group is pleased to offer the opportunity to acquire the fee simple interest (land & building ownership) in an ideally located, four story office building, 100% occupied by a single user UW Health Administrative Services. The lease is 100% guaranteed by the University of Wisconsin Hospitals and Clinics Authority who has a top tier investment grade rating of S&P AA-. The tenant has occupied the property since 2008 and recently signed a new long-term lease demonstrating their commitment to the site, along with significant capital improvements to the building. The lease features annual rental increases throughout the initial term and option periods and is on a NNN lease structure with tenant paid monthly reserves for future capital expenditures. Additionally, the asset includes a Credit Tenant Lease (CTL) zero cash flow financing to be assumed, which also includes the paydown/readvance feature allowing 1031 exchange investors to pull cash out from the transaction. The loan is non-recourse and is a rare new CTL financed loan in today’s market.

The asset strategically located less than 6 miles northeast of the University of Wisconsin-Madison (50,662 students) and UW Health University Hospital, a 505-bed facility that serves as a key component of the UW Health system and has recently earned the top ranking among all Wisconsin hospitals according to U.S. News & World Report. Furthermore, the site is ideally positioned just off Highway 12, an arterial thoroughfare that serves over 57,000 vehicles per day. Moreover, the site benefits from nearby access to U.S. Highway 14 (25,100 VPD) and Airport Rd (15,300 VPD), making this an ideal centralized location with easy commutes. In addition, the subject is ideally positioned among multiple multi-family properties including the Trotta Apartments (126 units), the Aviary at Middleton Market (263 units), Middleton Center (159 units), and more, providing a direct residential consumer base from which to draw. The 5-mile subject trade area is supported by more than 263,000 residents and 227,000 daytime employees. Residents within a 1-mile radius boast an affluent average household income of more than $129,000.