Overview

Description

We are pleased to present this exceptional investment opportunity: a property leased to United Healthcare Services, Inc., a subsidiary of United Health Group, Inc. (NYSE: UNH). United Healthcare Services, Inc. is the largest Healthcare Management Company in the U.S., ensuring the stability and reputation of the tenant. The premises will serve as a medical office building (MOB) with its day-to-day operations overseen by Optum, the healthcare provider arm of UNH.

The lease agreement spans ten years, commencing on February 8, 2024, providing a solid long-term commitment from the tenant. The lease incorporates scheduled annual rent increases of 3% during the primary term, allowing for consistent growth in rental income. Additionally, the lease provides the tenant with three (3) five-year options to renew, offering the potential for extended occupancy and a continued revenue stream. This property operates under a Net Lease structure, meaning that the tenant assumes responsibility for reimbursing the Landlord for taxes, insurance, and maintenance expenses. This provides the Landlord with a low-maintenance and predictable income flow.

By acquiring this property, investors can benefit from a secure and reliable income stream, backed by the reputation and financial stability of United Healthcare Services, Inc., while enjoying potential rental growth throughout the lease term.

The property is strategically out-parceled to the new $750M MetroCenter redevelopment known as the Village. This redevelopment project will feature 2,600 multifamily units and 100,000 square feet of essential and service retail, ensuring a vibrant and desirable location for the property.

Highlights

• Investment Grade Tenant: United Health Care, Inc. (UNH) is an investment grade tenant with a secure corporate backing to the lease, evidenced by its S&P: A rating. This provides exceptional confidence and stability for investors.
• Net Lease Structure: This asset offers a new Ten-Year base term on a net lease, allowing owners to benefit from a low-maintenance and passive investment. The tenant assumes responsibility for taxes, insurance, and CAM expenses, while the landlord is responsible for the roof, structure, and minimal repairs.
• Strong Rental Increase: The lease term includes an annual rental increase of 3%, providing investors with an immediate upside in cash flow and the potential for accelerated growth.
• Excellent Location: The property is strategically out-parceled to the new $750M MetroCenter redevelopment known as the Village. This redevelopment project will feature 2,600 multifamily units and 100,000 square feet of essential and service retail, ensuring a vibrant and desirable location for the property.
• Proximity to Infrastructure: Adjacent to Interstate 17, with over 200,000 Average Daily Traffic (ADT), and conveniently located next to the new Valley Metro Station, the property enjoys excellent connectivity and accessibility for tenants and customers.
• Strong Demographics: With a population of over 442,000 people within a 5-mile radius and a 1% population growth over the last year, this area represents a thriving and healthy growth market, making it an attractive choice for any real estate investment.
• United Healthcare is allocating approximately $5,400,000 to enhance the interior space for medical use. The plan also involves creating specialized areas for different medical specialties or departments and implementing modern design and infrastructure to support medical procedures. This significant investment underscores United Healthcare's commitment to the property and providing high-quality healthcare services.

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