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Building Size
129,382 SF
Beds | Operating Rooms
41 | 13
Lease Structure
Abs. NNN
Population (5-Mile)
122,712
Year Built | Reno
2005 | 2008
INVESTMENT HIGHLIGHTS
HIGHLY FAVORABLE ORTHOPEDIC SPECIALTY – Orthopedics and spine procedures account for 97% of procedures performed at the facility with orthopedic case volumes rising. These specialties are in high demand due to the American population aging and living longer.
STRONG TENANT OPERATING ENTITY– Arkansas Surgical Hospital has experienced consistent revenue growth along with impressive margins and rent coverage. This combined with their limited debt obligations has afforded them an implied BBB credit rating. Medical Facilities Corporation acquired a 51% interest in the hospital in 2012.
FAVORABLE PAYOR MIX– Arkansas Surgical Hospital’s payor mix is more than 51% Blue Cross Blue Shield, Champus/Tircare, workers compensation and other private insurers. This provides more certainty that patient stays will be paid timely and in full.
BELOW MARKET RENT/SF AND $/SF – The lease features an annual rent of $4,587,602 ($35.46 PSF) well below the market rental rate for a surgical hospital. Additionally, the Property is being offered at a price per square foot that is below the market price for hospitals.
ATTRACTIVE LEASE STRUCTURE – Arkansas Surgical Hospital has seven (7) years remaining on the initial fifteen (15) year Absolute NNN Lease which features four, (4) five (5) year renewal options. The lease features attractive 2.50% annual rent increases.
