OFFERING MEMORANDUM CareNow 17700 E 39TH STREET INDEPENDENCE, MO 64055
CONTENTS 03 04 06 11 EXECUTIVE OVERVIEW FINANCIAL OVERVIEW TENANT OVERVIEW AREA OVERVIEW LISTED BY STEELE MCDONALD Associate STEELE.MCDONALD@MATTHEWS.COM DIR 214.692.2265 MOB 615.417.3631 LIC # 694333 (TX) BRADEN CROCKETT Associate VP & Director BRADEN.CROCKETT@MATTHEWS.COM DIR 214.692.2040 MOB 714.345.6206 LIC # 01946071 (CA) BROKER OF RECORD Kyle Matthews BROKER OF RECORD LIC # 2017010164 (MO)
EXECUTIVE OVERVIEW 3 INVESTMENT HIGHLIGHTS INVESTMENT HIGHLIGHTS: Attractive E-Commerce Resistant Asset - Full 10 Years of Lease Term - Commences February 2018 2% annual increases - Great Hedge Against Inflation throughout the life of the lease Recently Renovated in 2018 - Attractive Building Significant Tenant Investment - CareNow invested $600,000 towards Renovations Low Maintenance NN+ Lease - Landlord only responsible for Roof and Structure and the Roof is under long term warranty Strong Corporate Operation - CareNow is owned by Hospital Corporations of America (Ticker: HCA) PROPERTY HIGHLIGHTS: Independence, MO is an attractive suburb only about 10-Miles outside of Kansas City, MO Attractive Demographics- Strong Supporting Population of 145,106 people within a 5-mile radius, and over 400,000 people within a 10-mile radius Dominant Retail Corridor - Out-Parcel to a Super Target and Surrounded by National Tenants such as Walmart, Sam s Club, Costco, Independence Center Mall, Bass Pro Shop and more High Trafficked Location - ±24,000 VPD on East 39th Street with direct access to State Hwy 291 which sees 60,000 VPD GROWING, E-COMMERCE PROOF TENANT: CareNow is owned by Hospital Corporation of America (HCA), which has a $32 Billion Market Cap and is the largest private operator of hospitals in the world 90% anticipated growth of Urgent Care centers in 2016 according to the Urgent Care Association of America HCA CareNow has 80+ Centers in 9 States Visits to Urgent Care centers increased 19% from 2010 to 2015, according to a study done by Accenture. High Trafficked Location ±24,000 VPD on East 39th Street with direct access to State Hwy 291 which sees 60,000 VPD
FINANCIAL OVERVIEW ANNUALIZED OPERATING DATA EXECUTIVE SUMMARY Property Name CareNow Property Street 17700 E 39th Street City, State, Zip Independence, MO 64055 GLA ± 6,185 SF Lot Size ± 1.36 AC Year Built 2017 Monthly Rent Annual Rent Rent/SF Year 1 $13,166.67 $158,000.04 $25.55 Year 2 $13,430.00 $161,160.00 $26.06 Year 3 $13,698.60 $164,383.20 $26.58 Year 4 $13,972.57 $167,670.84 $27.11 Year 5 $14,252.02 $171,024.24 $27.65 Year 6 $14,537.06 $174,444.72 $28.20 Year 7 $14,827.80 $177,933.60 $28.77 Year 8 $15,124.36 $181,492.32 $29.34 Year 9 $15,426.85 $185,122.20 $29.93 Year 10 $15,735.38 $188,824.56 $30.53 4
TENANT SUMMARY FINANCIAL HIGHLIGHTS LIST PRICE CAP RATE $2,872,727 5.50% TERM REMAINING 10 YEARS Tenant Trade Name CareNow Urgent Care Type of Ownership Fee Simple Lease Guarantor Galen Holdco, LLC Lease Type NN+ Roof & Structure Landlord Responsibile (Roof Warranty) Original Lease Term 10 years Rent Commencement Date 2/6/2018 Lease Expiration Date 2/5/2028 Term Remaining 10 years Increases 2% annually Options Two (2) - Five (5) Year 5
6 TENANT OVERVIEW
CareNow CareNow is a dedicated clinic staffed by qualified and experienced doctors and nurses dedicated to improving the lives of their patients. CareNow clinics are dedicated to reducing the wait time while improving overall health. With more than 60 urgent care clinics around the United States. HCA HEALTHCARE HCA Healthcare is one of the nation s leading providers of healthcare services, comprising 177 hospitals and 119 freestanding surgery centers in 20 states and the United Kingdom. With its founding in 1968, Nashville-based HCA Healthcare created a new model for hospital care in the United States. R. Milton Johnson is the company s chairman and chief executive officer. COMPANY TRADE NAME CARENOW HEADQUARTERED NASHVILLE, TN WEBSITE WWW.CARENOW.COM # OF LOCATIONS ±80 YEAR FOUNDED 1993 7
THE OFFERING PARCEL MAP Property Name Property Address CareNow 17700 E 39th St Independence, MO 64055 Assessor s Parcel Number 34-310-04-10-00-0-00-000 College Blvd ± 40,116 Site Description Number of Stories One Year Built 2017 GLA ± 6,185 SF Lot Size ± 1.36 Acres (59,242 SF) Type of Ownership Fee Simple Parking ± 88 Surface Spaces Parking Ratio ± 14.23 : 1,000 SF Landscaping Professional Topography Generally Level Oceanside Blvd ± 31,792 8
SURROUNDING TENANTS 9
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AREA OVERVIEW INDEPENDENCE, MO Independence, MO is the county seat of Jackson County and part of the Kansas City MSA. Nicknamed the Queen City of the Trails, because in the 1840 s it was a main point of departure for the California, Oregon, and Santa Fe Trails. The city is often a visiting spot for tourists in the Kansas City area. Visitors are given the chance to immerse themselves in American Pioneer history along with the Civil War-era. Independence, just a 20-minute drive to Kansas City, finds itself 16% below the national average. Being so close to a major city such as Kansas City makes for a place to live that has access to all that Kansas City has to offer, at a cheaper cost of living in a less crowded setting. DEMOGRAPHICS POPULATION 1 Mile 3 Mile 5 Mile 2023 Projection 6,858 56,820 149,016 2018 Estimate 6,690 55,102 145,106 Growth 2010-2018 3.82% 4.96% 4.06% HOUSEHOLDS 1 Mile 3 Mile 5 Mile 2023 Projection 3,023 24,093 61,312 2018 Estimate 2,952 23,385 59,715 Growth 2010-2018 3.58% 4.53% 3.97% INCOME 1 Mile 3 Mile 5 Mile 2018 Est. Average Household Income $71,672.61 $76,571.68 $71,237.55 11
Kansas City, MO Kansas City is a large, prosperous, self-sufficient and culturally rich city located astride the Missouri River. Kansas City is the largest city in the US state of Missouri and the sixth largest in the Midwest. The estimated population in 2015 was 475,000, making it the 36th largest city by population. It is the anchor city of the Kansas City metropolitan area, which straddles the Kansas-Missouri border. Kansas City is known for its distinctive style of barbecue, its craft breweries and its major league sports teams. The city is composed of several neighborhoods, including the River Market District in the north, the 18th and Vine District in the east, and the Country Club Plaza in the south. Kansas City is officially nicknamed the City of Fountains. The fountains at Kauffman Stadium, commissioned by original Kansas City Royals owner Ewing Kauffman, are the largest privately funded fountains in the world. The city has more boulevards than any other city except Paris and has been called Paris of the Plains. One of America s BEST Downtowns -Forbes America s Next Great Culinary Destination -Saveur America s #1 Affordable Getaway -Travel & Leisure 12
Economy Top Employers Kansas City grew up as an agricultural center that provided commercial and industrial support to the vast agricultural area to the west. Food processing is still a major industry, but diverse industries such as greeting cards, telecommunications, publishing, and automobile manufacturers have also set up shop. The Federal government is the largest employer in the Kansas City metro area. More than 146 federal agencies maintain a presence there. Kansas City is one of ten regional office cities for the US government. The Internal Revenue Service maintains a large service center in Kansas City. The IRS has approximately 2,700 full-time employees in Kansas City, growing to 4,000 during tax season. 13 13
CONFIDENTIALITY & DISCLAIMER STATEMENT This Offering Memorandum contains select information pertaining to the business and affairs of CareNow located at 17700 E 39th St, Independence MO 64055 ( Property ). It has been prepared by Matthews Real Estate Investment Services. This Offering Memorandum may not be all-inclusive or contain all of the information a prospective purchaser may desire. The information contained in this Offering Memorandum is confidential and furnished solely for the purpose of a review by a prospective purchaser of the Property. It is not to be used for any other purpose or made available to any other person without the written consent of Seller or Matthews Real Estate Investment Services. The material is based in part upon information supplied by the Seller and in part upon financial information obtained from sources it deems reliable. Owner, nor their officers, employees, or agents makes any representation or warranty, express or implied, as to the accuracy or completeness of this Offering Memorandum or any of its contents and no legal liability is assumed or shall be implied with respect thereto. Prospective purchasers should make their own projections and form their own conclusions without reliance upon the material contained herein and conduct their own due diligence. By acknowledging your receipt of this Offering Memorandum for the Property, you agree: 1. The Offering Memorandum and its contents are confidential; 2. You will hold it and treat it in the strictest of confidence; and 3. You will not, directly or indirectly, disclose or permit anyone else to disclose this Offering Memorandum or its contents in any fashion or manner detrimental to the interest of the Seller. Owner and Matthews Real Estate Investment Services expressly reserve the right, at their sole discretion, to reject any and all expressions of interest or offers to purchase the Property and to terminate discussions with any person or entity reviewing this Offering Memorandum or making an offer to purchase the Property unless and until a written agreement for the purchase and sale of the Property has been fully executed and delivered. If you wish not to pursue negotiations leading to the acquisition of the Property or in the future you discontinue such negotiations, then you agree to purge all materials relating to this Property including this Offering Memorandum. A prospective purchaser s sole and exclusive rights with respect to this prospective transaction, the Property, or information provided herein or in connection with the sale of the Property shall be limited to those expressly provided in an executed Purchase Agreement and shall be subject to the terms thereof. In no event shall a prospective purchaser have any other claims against Seller or Matthews Real Estate Investment Services or any of their affiliates or any of their respective officers, Directors, shareholders, owners, employees, or agents for any damages, liability, or causes of action relating to this solicitation process or the marketing or sale of the Property. This Offering Memorandum shall not be deemed to represent the state of affairs of the Property or constitute an indication that there has been no change in the state of affairs of the Property since the date this Offering Memorandum.
EXCLUSIVELY LISTED BY STEELE MCDONALD Associate STEELE.MCDONALD@MATTHEWS.COM DIR 214.692.2265 MOB 615.417.3631 LIC # 694333 (TX) BRADEN CROCKETT Associate VP & Director BRADEN.CROCKETT@MATTHEWS.COM DIR 214.692.2040 MOB 714.345.6206 LIC # 01946071 (CA) BROKER OF RECORD Kyle Matthews BROKER OF RECORD LIC # 2017010164 (MO) OFFERING MEMORANDUM CareNow 17700 E 39TH STREET INDEPENDENCE, MO 64055