IASIS Healthcare Urgent Care 5360 South 2700 West | Salt Lake City, Utah 84118
Total Page:16
File Type:pdf, Size:1020Kb
Subject Property Rendering Offering Memorandum IASIS Healthcare Urgent Care 5360 South 2700 West | Salt Lake City, Utah 84118 Brand New Construction | 3% Annual Rent Increases | Dominant Healthcare System Tenant Offered Exclusively by Toby Scrivner Senior Director Confidentiality and Restricted Use Agreement [email protected] This Confidential Offering Memorandum (“COM”) is provided by Stan Johnson Company (“SJC”), solely for your P: +1 918.494.2690 consideration of the opportunity to acquire the commercial property described herein (the “Property”). This COM Jeff Matulis may be used only as stated herein and shall not be used for any other purpose, or in any other manner, without prior Senior Director written authorization and consent of SJC. [email protected] P: +1 918.494.2690 This COM does not constitute or pertain to an offer of a security or an offer of any investment contract. This COM contains descriptive materials, financial information and other data compiled by SJC for the convenience Grant Wilkins Associate Director of parties who may be interested in the Property. Such information is not all inclusive and is not represented to [email protected] include all information that may be material to an evaluation of the acquisition opportunity presented. SJC has P: +1 918.494.2690 not independently verified any of the information contained herein and makes no representations or warranties of any kind concerning the accuracy or completeness thereof. All summaries and discussions of documentation and/ Colin Cornell or financial information contained herein are qualified in their entirety by reference to the actual documents and/ Associate [email protected] or financial statements, which upon request may be made available. An interested party must conduct its own P: +1 918.494.2690 independent investigation and verification of any information the party deems material to consideration of the opportunity, or otherwise appropriate, without reliance upon SJC. Teresa Coleman Associate The Property may be financed or withdrawn from the market without notice, and its owner(s) reserve(s) the right to [email protected] negotiate with any number of interested parties at any time. The Property is offered and sold by its owner(s) as is, P: +1 918.494.2690 where is, and with all faults, without representation or warranty of any kind except for any customary warranties of Christian Vaughan title. Analyst [email protected] BY ACCEPTING THIS COM, YOU AGREE THAT: (1) all information contained herein, and all other information you P: +1 918.494.2690 have received or may hereafter receive from SJC relating to the Property, whether oral, written or in any other form (collectively, the “Information”), is strictly confidential; (2) you will not copy or reproduce, and claim as your own Becca Kirby Sr. Marketing Specialist without attribution to SJC, all or any part of this COM or the Information; (3) upon request by SJC at any time, you [email protected] will return and/or certify your complete destruction of all copies of this COM and the Information; (4) for yourself P: +1 918.494.2690 and all your affiliates, officers, employees, representatives, agents and principals, you hereby release and agree to indemnify and hold harmless SJC all of its affiliates, officers, employees, representatives, agents and principals, from In Association With: and with respect to any and all claims and liabilities arising from or related to the receipt or use of this COM and/ Gill Warner or any other Information concerning the Property; (5) you will not provide this COM or any of the Information to Utah Broker #5481029-PBOO any other party unless you first obtain such party’s acceptance and approval of all terms, conditions, limitations and agreements set forth herein, as being applicable to such party as well as to you; and (6) monetary damages alone will not be an adequate remedy for a violation of these terms and that SJC shall be entitled to equitable relief, including, Stan Johnson Company but not limited to, injunctive relief and specific performance, in connection with such a violation and shall not be 6120 South Yale Avenue | Suite 300 required to post a bond when obtaining such relief. Tulsa, Oklahoma 74136 P: 918.494.2690 stanjohnsonco.com Table of Contents Section 1: About the Investment Pricing & Executive Summary ..............................................................5 The Offering ..............................................................................6 Investment Highlights .....................................................................7 Section 2: About the Property Salt Lake City, UT Lease Abstract & Rent Schedule ............................................................9 Cash Flow Model .........................................................................10 Short Term Acute Care Market Study ......................................................11 Site Plan ................................................................................12 Subject Property Renderings ..............................................................13 Floor Plan ...............................................................................14 Section 3: About the Tenant Tenant Overview .........................................................................16 Steward Health Care & IASIS Merger Article ................................................20 Section 4: About the Location Location Overview .......................................................................22 Aerial Map ...............................................................................23 Surrounding Medical Tenants ..............................................................24 Demographics ...........................................................................25 Section One About the Investment IDAHO WYOMING Offering Price: $2,302,109 Cap Rate: 5.50% Executive Summary Salt Lake City, UT Jordan Valley Medical Tenant/Guarantor: Center, LP Interest: Fee-Simple 5360 South 2700 West Location: Denver, CO Salt Lake City, UT Parcel Size: 0.71 Acres Built: 2017 COLORADO RBA: 4,522 SF Commencement: 01/01/2018 (estimated) Initial Term: 10 years Expense NNN Structure: Rental Increases: 3.00% annually Current Rent: $126,616 ($28.00 psf) ARIZONA NEW MEXICO IASIS Healthcare Urgent Care • Salt Lake City, UT 5 The Offering Stan Johnson Company is pleased to exclusively offer for sale to qualified investors the 4,522 square-foot medical office building, IASIS Urgent Care, located at 5360 South 2700 West, Taylorsville, UT (the “Property”). The offering is comprised of an approximate 0.71 acre plot, along with the fee-simple ownership rights to a medical office building used for urgent care purposes, that is 100% leased by Jordan Valley Medical Center, LP. The newly constructed facility has a brand new ten (10) year base term with three (3), five (5) year options to renew. The lease features rare, three percent (3.0%) annual rental increases, and a NNN expense structure, with landlord responsibilities limited to roof, structure, and parking. Situated with frontage on 2700 South (+/- 16,945 VPD), the Property sits adjacent to Interstate 215 (+/- 123,245 VPD) and offers easy access to downtown Salt Lake City (+/- 12 miles) via I-215, and I-80. Strategically located only 12 miles south of Salt Lake City, the Property benefits from one of the most stabilized economies in the country. Salt Lake City is home to more than 20,000 businesses and boasts an unemployment rate of 3.4% compared to the national average of 4.9% as of June 2016. According to Forbes, Salt Lake City is ranked the “#1 City Poised to Become Tomorrow’s Tech Mecca” while ZipRecruiter called Salt Lake City the “6th Best Job Market for New College Graduates.” Furthermore, the Property benefits from dense and affluent demographics, boasting an average household income over $70,438 within a 5-mile radius and a population exceeding 390,030. Jordan Valley Medical Center is a first-class community hospital featuring 171 beds. The group employs more than 691 full-time employees, making it the third-largest employer in the area. IASIS Healthcare Holdings is the general partner of Jordan Valley Medical Center, and is rated B2 by Moody’s Investor Service (Jan 2017). Most recently, IASIS Healthcare was acquired by Steward Health Care and makes Steward Health Care the largest private for-profit hospital operator in the country with 36 hospitals in 10 states. Cerberus Capital Management, LP, one of the world’s leading SOUTHEAST FAÇADE private investment firms, is the majority shareholder in Steward Health Care, LLC. Subject Property TAYLORSVILLE MEDICAL OFFICE PROPOSED BUILDING IASIS Healthcare Urgent Care • Salt Lake City, UT 6 3D SKETCH SK 04 PROJ 16.002 DATE: 02/09/17 Subject Property Renderings Investment Highlights Dominant Health System Tenant – Jordan Valley Medical Center, Brand New Construction – The Property is currently under the tenant, is a 183-bed community hospital that provides construction, with an estimated turnkey completion at the end of excellent healthcare for the people of southwest Salt Lake Valley. 2017. IASIS Healthcare Holdings is the general partner of Jordan Valley Premier Market – Strategically located only 12 miles south Medical Center, and is rated B2 by Moody’s Investor Service of Salt Lake City, the Property benefits from one of the most (Jan 2017). Jordan Valley Medical Center employs more than 691 stabilized economies in the country.