Offering Memorandum - LoopNet · 2019. 10. 18. · Ankle & Foot Centers of GA The Doctors and...

LAGRANGE MED VENTURES

15 YEARS OF PERSONALLY GUARANTEED INCOME1075 Lafayette Pkwy • Lagrange, GA 30241

Offering Memorandum

1


Lagrange, GA

ACT ID ZAA0020297

N O N - E N D O R S E M E N T A N D D I S C L A I M E R N O T I C E

Non-Endorsements

Marcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any

corporation's logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or

subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee information about

this listing to prospective customers.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY.

PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS.

Disclaimer

THIS IS A BROKER PRICE OPINION OR COMPARATIVE MARKET ANALYSIS OF VALUE AND SHOULD NOT BE CONSIDERED AN APPRAISAL. This information has

been secured from sources we believe to be reliable, but we make no representations or warranties, express or implied, as to the accuracy of the information. References

to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a service mark of Marcus &

Millichap Real Estate Investment Services, Inc. © 2018 Marcus & Millichap. All rights reserved.

2

TABLE OF CONTENTS

SECTION

FINANCIAL ANALYSIS 01Tenant Summary

Operating Statement

Notes

Pricing Detail

Proposal Price

INVESTMENT OVERVIEW 02

Property Overview

Regional Map

Local Map

Aerial Photo

MARKET COMPARABLES 03

Sales Comparables

MARKET OVERVIEW 04

Market Analysis

Demographic Analysis


3


4

FINANCIAL

ANALYSIS

FINANCIAL ANALYSIS


5

TENANT SUMMARY

*The 2 Sellers will sign a personally guaranteed Gap Lease at the close of escrow. If at any point during the 15 year term after the close of escrow a tenant vacates the building, then the Gap Lease will be automatically triggered. The Sellers would then lease and personally guarantee the vacated space for the remainder of the 15 years. The Sellers would have full sub-leasing rights over this space and they would pay the last tenant’s rent + 2%/yr. rent increases, as the gap lease rent to the landlord. The Buyer therefore gets the benefit of 15 years of personally guaranteed income on the property.

1) Suite 100 - This tenant has a one time right to terminate their lease early on 10/11/2023, with a 60 day notice and the repayment of all TI costs ($1,676,060) to the landlord.

2) Suite 110 - This tenant has a one time right to terminate their lease early on 10/11/2023, with a 60 day notice and the repayment of all TI costs ($2,143,769) to the landlord.

3) Suites 110 & 120 – Georgia is a certificate of need state for these medical tenant uses.

4) Suites 120, 200, 210 & 230 – All of these tenants will sign 15 year personally guaranteed leases at the close of escrow.

5) Suite 220 - This tenant has a one time right to terminate their lease early on 10/11/2023, with a 60 day notice and the repayment of all TI costs ($338,499) to the landlord.

6) Suite 240 – This tenant has a one time right to terminate their lease early on 4/15/2021, with a 60 day notice and the repayment of all TI costs to the landlord.

FINANCIAL ANALYSIS


OPERATING STATEMENT

6

Other Income – Tenant direct expenses/100% reimbursements. Includes cleaning and internet costs.Based upon 2018 expensesGas/Water – Paid directly by the tenantsM&M analysis eliminated the DirectTV and Dues/Subscription expensesR&M – Includes janitorial expensesUtilities – Includes trash expenseMgmt. Fee – M&M analysis projected this at 4% EGIReal Estate Taxes – New reassessed taxes shown, based upon the list price per the Troup County GA website.

FINANCIAL ANALYSIS


PRICING DETAIL

7


8

INVESTMENT

OVERVIEW

PROPERTY OVERVIEW


PROPERTY OVERVIEW

Marcus & Millichap is pleased to present the 22,248 SF LaGrange Med Ventures building located in LaGrange, GA. The class Aproperty was constructed in 2016 and it is situated 65 miles Southwest of Downtown Atlanta. The building is easily accessible fromthe adjacent Highway 109.

The subject property is a unique asset, since it is the only 20K+ SF MOB within a 20 mile radius, the total TI costs were over $6M(including about $3M for the surgery center alone) and the surgery center/MRI suites have Certificates of Need (CONs), that arestrictly controlled and required by the state for these specialized medical uses.

This extremely low risk Medical Office Building currently features majority 9+ year remaining lease terms and 32% of the buildinghas 15 years remaining on their leases. Additionally, the 2 Sellers will sign a personally guaranteed Gap Lease at the close ofescrow, offering the Buyer 15 years of personally guaranteed income on the property. The building is leased to a variety ofattractive/specialized medical uses including: imaging, pain management, neurology, podiatry, dermatology and a surgery center.This location also features 4 operating rooms and an MRI machine.

This extremely stable property offers an investor the opportunity to acquire a long term leased multi-tenant medical office building,with an attractive tenant base and financial return.

PROPERTY OVERVIEW

15 Years Of Personally Guaranteed Income

Class A 2016 Construction

$6M Spent on Tenant Improvement Buildouts | 2 CONs

86% of the Tenants Have 9+ Years Remaining on Their

Leases

32% of the Tenants Have 15 Years Remaining on Their

Leases

Easily Accessible from the Adjacent Highway 109

9

12

TENANT PROFILES


10

Ankle & Foot Centers of GA

The Doctors and Professional Staff at the Ankle and Foot

Centers of America strive to stay abreast of the latest and most

state-of-the-art concepts in ankle and foot care. They maintain

the highest levels of certification and accreditation and complete

numerous hours of ongoing education each year.

We believe that a doctor and patient become a team for treating

an individual’s feet. Our physicians spend most of their time

listening to you to understand your concerns. Our group of

doctors works on an extended team basis frequently consulting

with one another on difficult cases and always involving other

physicians in the medical community when necessary. Our

doctors are one of the best and most well trained groups in the

United States. They are nationally known lecturers and published

authors in the field of podiatric medicine.

General Information

Tenant Name Ankle & Foot Centers of GA

Website www.ankleandfootcenters.com

Headquartered Atlanta, GA

Rentable Square Feet 3,088 SF

Percentage of RBA 13.88%

Lease Commencement 10/11/2018

Lease Expiration 9/30/2034

No. of Locations 31

12

TENANT PROFILE


11

Lafayette Neurology

General Information

Tenant Name Lafayette Neurology

Parent Company Affiliated w/Emory Healthcare

Headquartered LaGrange, GA

Rentable Square Feet 2,327 SF

Percentage of RBA 10.46%

Lease Commencement 10/11/2018

Lease Expiration 9/30/2034

No. of Locations 1

LaFayette Neurology is a private practice member of the

Emory Healthcare Network. Established in 2011, the

Emory Healthcare Network joins together Emory-

employed and private practice physicians in communities

throughout metro Atlanta and the state, in collaboration

with Emory Healthcare, into a single comprehensive care

management system.

REGIONAL MAP


12

LOCAL MAP


13

AERIAL PHOTO


14

12


15

PROPERTY PHOTO

16

PROPERTY PHOTO



17

MARKET

COMPARABLES


SALES COMPARABLES MAP

18


(SUBJECT)

5 Property MOB Portfolio

Park Central Medical

3620 Martin Luther King Jr

Dr SW

Hamilton Mill

Medical Center at Grand

Dunes

SALES COMPARABLES

1

2

3

4

5

PROPERTY NAMELAGRANGE MED VENTURES

SALES COMPARABLES

19

SALES COMPARABLES

Avg. $253.66

$0.00

$50.00

$100.00

$150.00

$200.00

$250.00

$300.00

$350.00

$400.00

$450.00

$500.00

LaGrange

Med

Ventures

5 Property

MOB

Portfolio

Park

Central

Medical

3620 Martin

Luther King

Jr Dr SW

Hamilton

Mill

Medical

Center at

Grand Dunes

Average Price Per Square Foot

Avg. 7.10%

0.0

0.8

1.6

2.4

3.2

4.0

4.8

5.6

6.4

7.2

8.0

LaGrange

Med

Ventures

5 Property

MOB

Portfolio

Park

Central

Medical

3620 Martin

Luther King

Jr Dr SW

Hamilton

Mill

Medical

Center at

Grand Dunes

Average Cap Rate

SALES COMPARABLES SALES COMPS AVG

PROPERTY NAME

MARKETING TEAM


SALES COMPARABLES

rentpropertyname1

rentpropertyaddress1

rentpropertyname1


rentpropertyname1


20

SALES COMPARABLES

Asking Price $10,500,000

Price/SF $471.95

CAP Rate 7.03%

Year Built 2016

Occupancy 100%

LAGRANGE MED VENTURES1075 Lafayette Pkwy, Lagrange, GA, 30241

1

Close of Escrow 12/19/2018

Sales Price $7,000,000

Rentable SF 33,504

Price/SF $208.93

CAP Rate 7%

Year Built 2002

Occupancy 100%

NOTES

Multi-tenant MOB portfolio sale.

5 PROPERTY MOB PORTFOLIO1790 Presidential Cir, Snellville, GA, 30078

2



Rentable SF 36,000

Price/SF $263.89

CAP Rate 7%

Year Built 2007

Occupancy 100%

NOTES

Multi-tenant MOB sale.

PARK CENTRAL MEDICAL121 Park Central Dr, Columbia, SC, 29203

PROPERTY NAME

MARKETING TEAM


SALES COMPARABLES

rentpropertyname1


rentpropertyname1


rentpropertyname1


21

SALES COMPARABLES

NOTES


3



Rentable SF 33,786

Price/SF $257.50

CAP Rate 7.08%

Year Built 1973

Occupancy 100%

3620 MARTIN LUTHER KING JR DR SW3620 Martin Luther King Jr Dr SW, Atlanta, GA, 30331

4



Rentable SF 33,048

Price/SF $245.10

CAP Rate 7.11%

Year Built 2008

Occupancy 93%

NOTES


HAMILTON MILL2089 Teron Trce, Dacula, GA, 30019

5



Rentable SF 28,000

Price/SF $292.86

CAP Rate 7.3%

Year Built 2006

Occupancy 100%

NOTES


MEDICAL CENTER AT GRAND DUNES1021 82nd Ave N, Myrtle Beach, SC, 29572


22

MARKET

OVERVIEW

PROPERTY NAME

MARKETING TEAM


DEMOGRAPHICS

Source: © 2018 Experian

Created on July 2019

POPULATION 1 Miles 3 Miles 5 Miles

2023 Projection

Total Population 5,013 29,687 39,903

2018 Estimate


2010 Census


2000 Census


Current Daytime Population

2018 Estimate 5,289 29,598 44,492

HOUSEHOLDS 1 Miles 3 Miles 5 Miles

2023 Projection

Total Households 1,892 11,520 14,863

2018 Estimate


Average (Mean) Household Size 2.57 2.57 2.56

2010 Census


2000 Census


HOUSEHOLDS BY INCOME 1 Miles 3 Miles 5 Miles

2018 Estimate

$200,000 or More 0.11% 2.06% 2.26%

$150,000 - $199,999 0.06% 2.21% 2.41%

$100,000 - $149,000 3.18% 6.59% 7.68%

$75,000 - $99,999 5.38% 8.36% 8.90%

$50,000 - $74,999 16.01% 18.34% 18.77%

$35,000 - $49,999 14.21% 12.31% 12.21%

$25,000 - $34,999 15.08% 12.51% 12.60%

$15,000 - $24,999 16.09% 13.89% 13.55%

Under $15,000 22.12% 19.88% 18.54%

Average Household Income $35,007 $53,074 $55,959

Median Household Income $27,458 $34,873 $37,948

Per Capita Income $13,275 $20,880 $21,282

POPULATION PROFILE 1 Miles 3 Miles 5 Miles

Population By Age

2018 Estimate Total Population 5,019 28,619 38,250

Under 20 32.11% 30.04% 28.59%

20 to 34 Years 22.35% 23.25% 23.05%

35 to 49 Years 17.15% 17.24% 17.57%

50 to 59 Years 11.61% 11.59% 12.09%

60 to 64 Years 4.98% 4.93% 5.03%

65 to 69 Years 3.65% 4.26% 4.40%

70 to 74 Years 2.85% 2.94% 3.06%

Age 75+ 5.28% 5.73% 6.23%

Median Age 31.70 32.50 33.76

Population by Gender

2018 Estimate Total Population 5,019 28,619 38,250

Male Population 46.09% 46.69% 47.77%

Female Population 53.91% 53.31% 52.23%

AVERAGE HEALTH CARE

EXPENDITURE1 Miles 3 Miles 5 Miles

2018 Estimate Total Expenditure

Percent of Total 21.01% 17.55% 18.33%

Health Care Insurance $1,995 $2,572 $2,733

Percent of Total 71.51% 70.21% 70.04%

Medical Services $398 $553 $592

Percent of Total 14.27% 15.11% 15.17%

Medical Supplies $84 $121 $129

Percent of Total 3.01% 3.30% 3.31%

Percentage Change 2018-

Health Care Insurance 25.02% 22.92% 22.08%

Medical Services 28.92% 23.92% 23.13%

Medical Supplies 29.50% 26.69% 26.14%

23

Income

In 2018, the median household income for your selected geography is

$27,458, compare this to the US average which is currently $58,754.

The median household income for your area has changed by 9.28%

since 2000. It is estimated that the median household income in your

area will be $31,560 five years from now, which represents a change

of 14.94% from the current year.

The current year per capita income in your area is $13,275, compare

this to the US average, which is $32,356. The current year average

household income in your area is $35,007, compare this to the US

average which is $84,609.

Population

In 2018, the population in your selected geography is 5,019. The

population has changed by -5.85% since 2000. It is estimated that the

population in your area will be 5,013.00 five years from now, which

represents a change of -0.12% from the current year. The current

population is 46.09% male and 53.91% female. The median age of the

population in your area is 31.70, compare this to the US average

which is 37.95. The population density in your area is 1,597.63 people

per square mile.

Households

There are currently 1,873 households in your selected geography. The

number of households has changed by -6.58% since 2000. It is

estimated that the number of households in your area will be 1,892

five years from now, which represents a change of 1.01% from the

current year. The average household size in your area is 2.57

persons.

Employment

In 2018, there are 2,494 employees in your selected area, this is also

known as the daytime population. The 2000 Census revealed that

35.27% of employees are employed in white-collar occupations in this

geography, and 65.66% are employed in blue-collar occupations. In

2018, unemployment in this area is 6.22%. In 2000, the average time

traveled to work was 22.00 minutes.

Race and Ethnicity

The current year racial makeup of your selected area is as follows:

24.62% White, 67.35% Black, 0.00% Native American and 0.56%

Asian/Pacific Islander. Compare these to US averages which are:

70.20% White, 12.89% Black, 0.19% Native American and 5.59%

Asian/Pacific Islander. People of Hispanic origin are counted

independently of race.

People of Hispanic origin make up 7.75% of the current year

population in your selected area. Compare this to the US average of

18.01%.

PROPERTY NAME

MARKETING TEAM


Housing

The median housing value in your area was $82,389 in 2018, compare

this to the US average of $201,842. In 2000, there were 987 owner

occupied housing units in your area and there were 1,018 renter

occupied housing units in your area. The median rent at the time was

$304.

Source: © 2018 Experian

DEMOGRAPHICS

24

8


DEMOGRAPHICS

25

Date post:	01-Feb-2021
Category:	Documents
Upload:	others
View:	0 times
Download:	0 times

Offering Memorandum - LoopNet · 2019. 10. 18. · Ankle & Foot Centers of GA The Doctors and...

Documents