TEXOMA MEDICAL PLAZA - PHASE II 5012 SOUTH U.S. HWY 75 DENISON, TX

Size: px

Start display at page:

Download "TEXOMA MEDICAL PLAZA - PHASE II 5012 SOUTH U.S. HWY 75 DENISON, TX"

Merryl Bennett
5 years ago
Views:

1 5012 SOUTH U.S. HWY 75 DENISON, TX On the campus of Texoma Medical Center

2 RENDERINGS

LOCATION ON THE CAMPUS OF TEXOMA MEDICAL CENTER Texoma Medical Center ( TMC ) is an acute care hospital offering major specialty services, including cardiology and neurosurgery.

3 LOCATION ON THE CAMPUS OF TEXOMA MEDICAL CENTER Texoma Medical Center ( TMC ) is an acute care hospital offering major specialty services, including cardiology and neurosurgery. There are more than 2,400 employees including 250 active, courtesy and consulting physicians on staff and over 120 volunteers. Advanced resources, such as certified trauma care, support TMC s role as a regional specialty center. In addition to cardiology and neurosurgery, TMC also specializes in robotic surgery, orthopedics, stroke care, bariatric surgery, emergency medicine, rehabilitation and more. The hospital is accredited by The Joint Commission and is consistently chosen as the best medical facility by readers of the Herald Democrat s Best of Texoma poll. CENTRAL LOCATION Located at the northeast corner of South U.S. Highway 75 and FM 691 in Denison, Texas, Texoma Medical Plaza conveniently serves the Sherman-Denison area, Grayson County, and neighboring communities of north Texas and southern Oklahoma. Denison is located in Grayson County, approximately 75 miles north of the DFW Metroplex.

4 EXECUTIVE SUMMARY A partnership, sponsored by PM Realty Group, L.P. ( PMRG ) and Universal Health Realty Income Trust ( UHT ), is developing an 85,000 gross square foot, three-story, Class-A medical office building in Denison, Texas. Phase II is taking shape on 36 acres of land, located on the campus of Texoma Medical Center ( TMC ). In addition to being on the TMC campus, Phase II offers the finest institutional-quality, first class medical office experience for both tenants and their patients in the Sherman-Denison community and surrounding Texoma area. For patients, the building provides easy access with a close-in parking area affording multiple building entrances. Physician tenants, on the other hand, can appreciate their occupancy and networking opportunities alongside many of the top physicians in the area, all in a high-quality on-campus building with superior interior finish and commercial-grade construction. With full-service building management by the Landlord, Phase II will showcase how careful planning and consideration of tenancy creates a successful medical office development. The on-campus, high profile location will foster significant community interest and referral patterns. GSR Andrade Architects, a recognized leader in medical architecture and whose work includes many of the recently developed medical office buildings in the North Texas area, is responsible for the design of Phase II. Their experience in designing medical office developments makes them uniquely qualified in the complex characteristics and demanding technical requirements inherent in medical facilities. The apparent result here is a medical office building which is value priced, contemporary, efficient and functional. Phase II is being developed by the national real estate firm of PMRG which has a broad range of experience and expertise in ground up medical construction inclusive of acute care and outpatient facilities, build-to-suits, and major commercial projects. PMRG developed Phase I in 2009, a 100% leased medical office building consisting of 120,000 gross square feet. Its national real estate infrastructure serves clients who have entrusted them with more than 130 million square feet of medical, industrial, R&D, manufacturing, retail, office, multifamily, and special-use space valued in excess of $30 billion. PMRG has directed over $2.2 billion in development and construction management assignments, $1.01 billion in groundup development, and over $500 million in healthcare development.

HIGHLIGHTS BUILDING: NUMBER OF FLOOR(S): BUILDING SIZE: STATUS: PARKING: TOTAL ACREAGE: On-campus, Class-A institutional quality medical office building Three

120,000 square feet of Class-A medical office space with limited availability.

5 HIGHLIGHTS BUILDING: NUMBER OF FLOOR(S): BUILDING SIZE: STATUS: PARKING: TOTAL ACREAGE: On-campus, Class-A institutional quality medical office building Three Approximately 85,000 gross square feet In-design Ratio of 5:1000 RSF 36 acres PHASE II PHASE I PARKING GARAGE MOB III PHASE I was completed in 2009 and consists of 120,000 square feet of Class-A medical office space with limited availability. The lead tenant, TexomaCare physician group, provides a stable primary care referral base for the hospital and local specialists, including Internal Medicine, Family Medicine, Pediatrics, OB/GYN, Hospitalists, and Pulmonology physicians. West Park Drive

6 SITE PLAN PHASE II PARKING.S. HIGHWAY 75 PHASE II *FUTURE PARKING DECK - ESTIMATED (2) 160 = 320 PARKING SPACE PHASE I MAIN ENTRY POOL ROAD MOB PHASE HOSPITAL PHASE MOB PHASE HOSPITAL PHASE LOADING UTILITY YARD TEXOMA MEDICAL CENTER HOSPITAL MAIN ENTRY FUTURE PARKING POOL ROAD

7 LEASE ECONOMICS LANDLORD: A partnership sponsored by PM Realty Group, L.P. and Universal Health Realty Income Trust (NYSE: UHT). BUILDING: A three-story, Class-A medical office building consisting of approximately 85,000 gross square feet on 36 acres of land, located on the Texoma Medical Center campus. Phase II will be adjacent to Phase I, completed in Phase I consists of 120,000 gross square feet and is currently 100% leased. PREMISES: The area proposed to be leased by the Tenant at a location in the Building that is mutually acceptable to the Tenant and Landlord. Final space plan and total square footage determination to be measured and verified by the Landlord s architect, and shall meet BOMA standards. LEASE TERM: The Landlord offers lease terms of five (5), seven (7), and ten (10) years. Longer lease terms shall be available if the Tenant seeks in excess of 10,000 square feet. BASE RENTAL RATE: The Base Rental Rate is $19.95 per rentable square foot and is quoted on a triple net basis. In addition to the Base Rental Rate, the Tenant shall be responsible for their pro rata share of the operating expenses, real estate taxes and their sub-metered or pro rata share of electricity usage. OWNERSHIP OPPORTUNITY: The Tenant has the option to invest as a partner with the Landlord in the ownership of the Building. OPERATING EXPENSES: The Tenant shall pay their pro rata share of the actual Operating Expenses of the Building, including their direct electricity usage. The Tenant will also be responsible for their proportionate share of the annual ground lease payment. TENANT IMPROVEMENT ALLOWANCE: The Landlord s architect shall develop a space plan, and subsequently develop construction documents, for the Tenant s Premises. The Landlord shall manage the construction of the Premises. The Landlord will provide the Tenant with an improvement allowance ranging from $62.00-$73.00 per usable square foot depending on Lease Term. The Tenant Improvement Allowance will be used towards the professional improvements of the Premises. Any amount over and above the Tenant Improvement Allowance provided by the Landlord, shall be borne solely by the Tenant. BUILDING SIGNAGE: The Tenant shall receive building-standard door and directory signage. Additionally, the Tenant shall have the opportunity for signage on an exterior monument sign if approved by the Landlord and local municipal authorities. PARKING: The Tenant shall have the right to a total of five (5) parking spaces per one thousand rentable square feet (5:1000 RSF) of the Premises in the Building s parking area. Available parking options will include surface parking lot spaces as well as spaces located in a parking garage deck located on the Texoma Medical Center campus.

8 COMMERCIAL REAL ESTATE TERMINOLOGY The following information is provided to assist prospective tenants in understanding Commercial Real Estate lingo, since many brokers use different terminology for explaining the same issues involved in a lease. Quite often a small difference has a big impact on the out-of-pocket expense or the rent. As your PMRG Healthcare Advisory Group, we help you compare apples to apples when considering a lease opportunity. LEASES LEASES NET LEASE: A lease in which there is a provision for the tenant to pay, in addition to rent, certain costs associated with the operation of the property. These costs may include property taxes, insurance, repairs, utilities and maintenance. There are also double net ( NN ) and triple net ( NNN ) leases. The difference between the three is the degree to which the tenant is responsible for operating costs. TRIPLE NET ( NNN ) LEASE: A lease in which the tenant pays, in addition to rent, certain costs associated with a leased property; this would include all expenses such as property taxes, insurance premiums, repairs, utilities and maintenance. GROSS LEASE: A lease in which the tenant pays a flat sum for rent out of which the landlord pays all expenses such as taxes, insurance, maintenance, utilities, etc. This may or may not include electricity. Also known as Gross Lease Net of E if it does not include electricity. STRAIGHT LEASE: A lease specifying a fixed amount of rent that is to be paid during the entire term of the lease, usually in monthly installments. Also known as Flat Lease. RENT & EXPENSES FULL SERVICE RENT: All-inclusive rental rate that includes operating expenses and real estate taxes for the first year. The tenant is still responsible for any increase in operating expenses over the base year amount. Also known as Gross Lease. BASE RENT: A set amount used as a minimum rent in a lease with provisions for increasing the rent over the term of the lease to account for the time value of money. BASE YEAR: Actual taxes and operating expenses for a specified base year, most often the year in which the lease commences. Once the base year expenses are known, the lease becomes a Dollar Stop lease. DOLLAR STOP: An agreed dollar amount of taxes and operating expenses (expressed for the building as a whole or on a square foot basis) over which the tenant will pay their prorated share of increases. May be applied to specific expenses. Also known as Expense Stop. OPERATING EXPENSES: The actual costs associated with operating a property such as maintenance, repairs, management, utilities, taxes and insurance. The landlord s definition of operating expenses is likely to be quite broad, covering most aspects of operating the building. VARIABLE EXPENSES: Costs, such as janitorial, that may vary within a building s occupancy and by decisions made in the management of the building. Also known as Controllable Expenses. FIXED EXPENSES: Operating costs that usually do not change as a result of occupancy; such as property taxes, insurance and some forms of building maintenance. PASS-THROUGHS: Refers to the tenant s pro rata share of operating expenses (i.e. taxes, utilities, repairs) paid in addition to the base rent. COMMON AREA MAINTENANCE ( CAM ): This is the amount of additional rent charged to the tenant, in addition to the base rent, to maintain the common areas of the property shared by the tenants and from which all tenants benefit (i.e. snow removal, outdoor lighting, parking lot sweeping, insurance, property taxes, etc.) This usually does not include any capital improvements made to the property.

9 COMMERCIAL REAL ESTATE TERMINOLOGY PREMISES PREMISES NET RENTABLE AREA: The floor area of a building that remains after the square footage represented by vertical penetrations, such as elevator shafts, has been deducted. Common areas and mechanical rooms are included but no deductions are made for necessary columns and projections of the building. This is the useable area within your defined space plus your pro rata share of common area. USABLE SQUARE FOOTAGE: The area contained within the demising walls of one s space that will physically be utilized by the tenant. RENTABLE SQUARE FOOTAGE: Equal to the usable square footage plus the tenant s pro rata share of the building common areas, such as lobbies, public corridors and restrooms. COMMON AREA FACTOR: Represents the percentage of net rentable square feet devoted to the building s common areas (lobbies, rest rooms, corridors, etc.) This factor can be computed for an entire building or a single floor of a building. It is calculated by dividing the rentable square footage by the usable square footage. Also referred to as Load Factor or Add-on Factor. SHELL SPACE: The interior condition of the usable square footage when it is without improvements or finishes. The term most commonly refers to the condition of the usable square footage after completion of the building s outer-shell construction but prior to the build out of the tenant s space. Shell construction typically denotes the floor, windows, walls and roof of an enclosed premises and may include some HVAC, electrical or plumbing improvements, but not demising walls or interior space partitioning. In a new multi-tenant building, the common area improvements, such as lobbies, restrooms and exit corridors may also be included in the shell construction. Also known as Cold, Dark Shell if there is no HVAC or electrical wiring to the space. SECOND GENERATION SPACE: Interior space that has been previously built-out for another tenant. TENANT IMPROVEMENT ( TI ) ALLOWANCE: Defines the fixed amount of money contributed by the landlord towards the construction of the improvements associated with one s premises. The tenant pays any of the costs that exceed this amount. PARKING RATIO: The intent of this ratio is to provide a uniform method of expressing the amount of parking that is available at a given building. Dividing the total rentable square footage of a building by the building s total number of parking spaces provides the amount of rentable square feet per each individual parking space (expressed as 1 per XXX). Dividing 1000 by the previous result provides the ratio of parking spaces available per each 1000 rentable square feet. Also known as X per 1000 or X:1000. PROPERTY VALUATION CAPITALIZATION RATE: This percentage relates to the value of an income producing property to its future income, expressed as net operating income divided by a purchase price. This percentage represents the yield an investor would make based upon the property s future value. Also known as Cap Rate. NET OPERATING INCOME ( NOI ): Income from a property after operating expenses have been deducted, but before deducting income taxes and financing expenses. The formula is: NOI = Gross Income Operating Expenses. FOR LEASING INFORMATION, CONTACT: PAM PERKINS (972) pperkins@pmrg.com Healthcare Advisory Services Developing environments that begin the healing process

Commercial Tenant Representation Glossary

Commercial Tenant Representation Glossary Absolute Net - Lease requiring tenant to pay in addition to base rent all costs associated with the operation, repair and maintenance of the building, all real