81800&81812 DOCTOR CARREON BLVD. A Class-A MOB Project with INDIO CALIFORNIA OFFERING MEMORANDUM

Transcription

1 81800&81812 DOCTOR CARREON BLVD INDIO CALIFORNIA A Class-A MOB Project with 20,733 SqFt OFFERING MEMORANDUM

2 CONFIDENTIALITY AGREEMENT & DISCLAIMER By accepting this Offering Memorandum, the party in possession hereof agrees (i) to return it to Owner/Agent immediately upon request and (ii) that this Offering Memorandum and its contents are of a confidential nature and will be held and treated in strict confidence. No portion of this Offering Memorandum may be copied or otherwise reproduced or disclosed to anyone without the prior written authorization of officer of Owner/Agent. Principals and real estate brokers are prohibited from disseminating this information without the specific written consent of an officer of Owner/Agent. This Offering Memorandum is subject to errors, omissions, changes or withdrawal without notice and does not constitute a recommendation or endorsement as to the value of the property as a reference and are based on assumptions proposed by Owner/Agent and their sources. Prospective purchasers should make their own projections and reach their own conclusion of value. Certain portions of this Offering Memorandum merely summarize or outline property information and are in no way intended to be complete nor necessarily accurate descriptions. All prospective purchasers are to rely upon their own investigations and due diligence in the formation of their assessment of the condition of the property, including engineering and environmental inspections. All relevant documents are expected to be reviewed independently by any prospective purchaser. Neither Owner nor the Agent nor any of their respective officers, advisors, agents, or principals has made or will make any representations or warranties, expressed or implied, as to the accuracy or completeness of the Offering Memorandum or any of the contents, and no legal commitment or obligations shall arise by reason of the Offering Memorandum or the contents. Analysis and verification of the information contained in the Offering Memorandum is solely the responsibility of the prospective purchaser. Owner reserves the right to reject any or all expressions of interest or offers to purchase this property, as well as the right to terminate discussions with any party at any time with our without notice. Owner shall have no legal commitment or obligation to any purchase reviewing this Offering Memorandum or making an offer to purchase this property unless a written agreement for the purchase of the property has been fully executed, delivered and approved by Owner and any conditions to Owner s obligations thereunder have been satisfied or waived. The terms and conditions set forth above apply to this Offering Memorandum in its entirety.

3 INVESTMENT OVERVIEW SEDONA MEDICAL PLAZA PROPERTY OVERVIEW & Doctor Carreon Blvd Address: Dr Carreon Blvd Dr Carreon Blvd APN: Parcel Size 0.7AC 1.16AC Year Built Building Class Class A Class A # of Stories 1 1 Rentable SF 8,238 13,524 Occupied 82% 100% Number of Buildings: 1 1 Parking: 4.74/ /1000 Zoning: CO RO Project Price: $5,600,000 (To be sold as a package) Project Occupancy: 93% CAP RATE 7.40% PPSF $ The JFK Surgery Center (Suite F leased by Tenet Corporation) has already asked to renew their lease in New federal laws prohibit hospitals from leasing additional space for so they are very protective of leases they have in place. Tenant has expressed to Seller that they will remove the 180 day out clause when they sign the next lease. This space along with suite E (also a Tenet lease) contains a "Hospital Based" surgery center which has a much higher level of TI's and regulatory approvals and is therefore valued much higher than a traditional ambulatory surgery center (akaan "outpatient ASC"). Hospital Based surgical operating space can cost $600-$800 per sq foot for tenant improvements. In 2015, Tenet invested aproximately $400,000 cash into a hospital grade HVAC system for their space (no cost to landlord). 3

4 INVESTMENT OVERVIEW PROPERTY RENT ROLLS Doctor Carreon Blvd Suite Size Tenant Doctor Carreon Blvd 4 Move- In Move- Out Rent PSF Type Suite A 1,450 MARKET (Vacant) $2,610 $1.80 Net Suite B 2,054 San Diego Spine 2/15 1/21 $3,534 $1.72 Net Suite D 1,158 Franco & Olivero 11/15 10/20 $1,679 $1.45 Net Suite C&F 3,423 D.M.I 3/10 2/20 $6,162 $1.80 Net Electric Room Occupied: 6, % $11,375 Vacant: 1, % $2, Total: 8, % Gross Potential: $13,985 Suite Size Tenant Move- In Move- Out Rent RPSF Type Suite A 1,600 Desert Clinic 8/14 10/19 $2,080 $1.30 Net Suite B 1,913 Desert Podiatry Group 4/11 M2M $2,400 $1.25 FSG Suite C 1,000 Lander Regenerative Urology 6/17 5/19 $2,000 $2.00 Net Suite D 2,032 Desert Clinic 8/14 10/19 $3,028 $1.49 Net Suite E* 1,029 JFK Hospital 5/11 11/21 $2,645 $2.57 Net Suite F* 4,921 Sedona Surgery Center 1/03 8/19 $13,626 $2.29 Net *Tenant has right to terminate lease with 120 (Suite E) or 180 (Suite F) day notice to landlord Occupied: 12, % $25,779 Vacant: % $ Total: 12, % Total: $25,779 Occupied: 19, % Vacant: 1, % Total: 20, % Combined Values

5 5 INVESTMENT OVERVIEW INCOME & EXPENSE 1) Dr Carreon Monthly Yearly PSF Notes Rental I ncome: $11,375 $136,500 $16.57 I N-PLACE CAM Reimbursments: $3,412 $41,231 $5.00 (Reimbursments based on new expenses). Total Income: 14,787 $177,731 $21.57 Expenses NOTES Property Taxes: $2,344 $28,128 $3.41 Property 1.25% Property Insurance: $218 $2,616 $0.32 Landscape: $343 $4,116 $0.50 Security Monitoring: $36 $432 $0.05 Repairs & Maint.: $109 $1,308 $0.16 Trash: $147 $1,764 $0.21 Utilities: $340 $4,080 $0.50 Property Management $592 $7,104 of Total income Misc Expenses: $137 $1,644 $0.20 Total Expenses: $4,266 $51,192 $6.21 2) Dr Carreon Monthly Yearly PSF Notes Rental I ncome: $25,779 $309,348 $22.87 I N-PLACE CAM Reimbursments: $6,166 $73,992 $5.47 Total Income 29,709 $356,506 $26.36 Expenses NOTES Property Taxes: $3,766 $45,197 $3.34 Property 1.25% Property Insurance: $354 $4,250 $0.31 Estimated Landscape: $661 $7,935 $0.59 Security Monitoring: $251 $3,017 $0.22 Repairs & Maint.: $208 $2,500 $0.18 Trash: $421 $5,049 $0.37 Utilities: $653 $7,840 $0.58 Janitorial Serv ices: $37 $440 $0.03 I nternet: $17 $200 $0.01 Property Management $1,222 $14,663 of Total income Misc Expenses: $225 $2,705 $0.20 Total Expenses: $7,816 $93,795 $7.63 (Reimbursments based on new expenses). Neither Broker nor Seller make any guarantees, warranties or representations about this analysis and property square footage. It is the recipient s responsibility to independently confirm its accuracy and completeness. The recipients of this analysis have been made aware that an investor, buyer or seller should not, purchase or sell predicated on this analysis without the advice of Financial, Tax and Legal Counsel.

6 INVESTMENT OVERVIEW COMBINED SUMMARY Combined Asset Total SqFt 21,762 Price $5,600,000 $ PPSF Current I n-place Rental I ncome: $445,848 $20.49 CAM Reimbursments $115,223 $5.29 Additional Vacancy: ($1,889.06) ($0.09) 7% Total Based on inplace occupancy Total I ncome $559,182 $25.70 $560, Total Expenses $144,987 $6.66 $145, NOI $414,194 $19.03 $415, Combined CAP Rate 7.40% 7.41% Neither Broker nor Seller make any guarantees, warranties or representations about this analysis and property square footage. It is the recipient s responsibility to independently confirm its accuracy and completeness. The recipients of this analysis have been made aware that an investor, buyer or seller should not, purchase or sell predicated on this analysis without the advice of Financial, Tax and Legal Counsel. 6

7 HOSPITAL OVERVIEW JFK MEMORIAL HOSPITAL JFK Memorial Hospital JFK Memorial Hospital has provided medical care to residents in the Coachella Valley since A group of physicians, including Dr. Reynaldo Carreon, founded the hospital and today one of JFK s cross streets is named in his honor. Originally called Indio Community Hospital, JFK has grown to a 145-bed acute-care hospital that is part of Tenet Healthcare California. It offers a variety of services, including: Emergency care 24/7 Orthopedic and joint replacement services using emerging technology Cardiovascular services Maternity care and pediatric services Ambulatory surgery center Imaging services Outpatient Rehabilitation Center Emergency care 24/7 Orthopedic and joint replacement services using emerging technology Cardiovascular services Maternity care and pediatric services Ambulatory surgery center Imaging services Outpatient Rehabilitation Center JFK is fully accredited by The Joint Commission, the nation s oldest and largest hospital accreditation agency, and has received several prestigious healthcare awards. JFK Memorial Hospital received The Leapfrog Group s top Safety Grade in the 2016 Fall release. The hospital was one of 844 hospitals to receive an A, ranking among the safest hospitals in the United States. The staff at JFK are more than deserving of this high mark, as they are truly dedicated to helping our patients live happier, healthier lives, said Gary Honts, CEO. The Leapfrog Hospital Safety Grade uses 30 measures of publicly available hospital safety data to assign A, B, C, D and F grades to more than 2,600 U.S. hospitals twice per year. It is calculated by top patient safety experts, peer-reviewed, fully transparent and free to the public. JFK is the ONLY hospital in the Inland Empire* to be a 5-Star Recipient for Total Knee Replacement 13 years in a Row according to Health Grades a leading independent healthcare ratings organization. The organization also gives JFK Memorial the top rating for total hip replacement and hip fracture repair, and has given the hospital its top rating for knee replacement each year for more than a decade. The hospital also has been recognized for the treatment of hip fractures and total knee replacements. 7

8 PROPERTY PHOTOS SEDONA MEDICAL PLAZA 8

9 PROPERTY AERIAL SEDONA MEDICAL PLAZA Subject Properties Subject Property Subject Property JFK Hospital 9

10 10 LOCATION OVERVIEW SEDONA MEDICAL PLAZA 81800&81812 Doctor Carreon Blvd, Indio CA Located on Doctor Carreon Boulevard The Sedona Medical plaza is Part of a strong medical corridor with numerous medical offices in close proximity to the site and John F. Kennedy Memorial Hospital across the street, a 145-bed acute care hospital with over 35,000 annual visitors. The site features easy access and excellent visibility to daily traffic counts in excess of 22,750+ vehicles. Close proximity to Highway 111 (39,400+ vehicles per day), the main north/south state highway and retail corridor through the Coachella Valley. Within a five-mile radius of several casinos and resorts including Fantasy Springs Resort Casino, Spotlight 29 Casino, Augustine Casino, and more. In close proximity to numerous golf clubs and resorts including La Quinta Resort Mountain Course, La Quinta Resort & Club, Rancho La Quinta Golf Club, Tradition Golf Club, SilverRock Resort, Mountain View Country Club, The Citrus Club at La Quinta Resort, Palm Desert Country Club, and many more. The property benefits from the close proximity to numerous schools with strong student populations within a three-mile radius including Indio High School (1,860+ students), John F Kennedy Elementary School (530+ students), Indio Middle School (840+ students), Amistad High School (310+ students), John Glenn Middle School (1,440+ students), Amelia Earhart Elementary School (910+ students), and many more. Valley" prior to being renamed as the "City of Festivals" because of cultural events held in the city. The concerts and festivals bring in hundreds of thousands of visitors every year. Indio is only 23 miles east of Palm Springs, 77 miles east of Riverside, and 127 miles east of Los Angeles. The city's ideal location and beautiful weather makes it a desirable residence for retirees and families alike. Indio has many past times and attractions including 130 golf courses, five casinos and many local events. The recent population boom has made the city spend over $100 million to improve its infrastructure in order to accommodate the growing population. These improvements have allowed developers to create new housing projects throughout the city which has created additional jobs and commerce in Indio. Two major contributors to the local economy are year-round agriculture and tourism. Top employers in the city include the County of Riverside, Desert Sands Unified School District, The Home Depot, John F. Kennedy Memorial Hospital, and more. Indio is a city in Riverside County and is located in the Coachella Valley of Southern California's Colorado Desert region. Indio was once referred to as "the Hub of the

11 11 PROPERTY AERIAL SEDONA MEDICAL PLAZA Subject Property

12 12 PROPERTY AERIAL SEDONA MEDICAL PLAZA

13 13 DEMOGRAPHICS SEDONA MEDICAL PLAZA Radius 1 Mile 3 Mile 5 Mile Population: 2021 Projection 22, , , Estimate 21,546 98, , Census 19,685 88, ,353 Growth % 6.64% 6.87% Growth % 11.30% 12.79% ` Households: 2021 Projection 6,655 31,559 59, Estimate 6,279 29,584 55, Census 5,843 26,479 49,273 Growth % 6.68% 6.93% Growth % 11.73% 13.30% Owner Occupied 3,012 19,832 37,857 Renter Occupied 3,267 9,752 17, Avg Household Income 47,974 66,704 73, Med Household Income 36,485 50,180 52, Households by Household Inc: <$25,000 2,216 7,543 13,148 $25,000 - $50,000 1,804 7,202 13,464 $50,000 - $75,000 1,086 5,428 9,710 $75,000 - $100, ,270 6,270 $100,000 - $125, ,339 4,466 $125,000 - $150, ,637 3,164 $150,000 - $200, ,350 2,863 $200, ,741

14 For Additional Information, Please Contact: David Meir Anvers Capital Partners Director CA License # Park Sorrento #110 Calabasas, CA Jack Minassian Anvers Capital Partners Director CA License # Park Sorrento #110 Calabasas, CA