The Northwest Healthcare is a free standing absolute NNN Medical Office Building leased to Northwest Hospital, LLC , the dominant healthcare provider for the Tucson MSA. This regional healthcare provider’s parent company is the publicly – traded, Fortune 500 company Community Health Systems, Inc. (NYSE: CYH). Northwest Primary and Specialty Care is a large multi-specialty physician group affiliated with Northwest Healthcare. With more than 80 providers and locations throughout the Tucson MSA. This building was constructed at the end of 2017 as a build-to-suit for Northwest Healthcare. The lease runs through the end of 2029 and calls for annual rent increases and two-five-year options to extend . The population exceeds 84,000 residents (5 – mile) with North Cortaro Road exceeding 26,900 vehicles per day.
The University of Arizona is a significant economic driver in the metro Tucson MSA. In addition to the campus, the University also oversees Tech Parks Arizona, which operates the UA Tech Park at Rita Road, UA Tech Park at the Bridges and the Arizona Center for Innovation. These facilities offer more than 2 million square feet of high-tech office, R&D and laboratory space, employing 6,000 workers at companies that include Raytheon, IBM and Citi. Tucson has capitalized on its high-tech cluster program, spawning technology jobs and attracting high-tech companies with a focus on solar, aerospace and defense, bioscience, and information technology. Tourism contributes $2 billion in a typical year, with over 3.5 million annual visitors.
The freestanding Fresenius Medical Care & iKids Pediatric Dentistry of Ennis, TX is a two-tenant facility constructed in 2006 on a build-to-suit basis and consists of approximately 10,300 square feet, residing on a large 1.35 acre parcel. The property is strategically positioned with excellent frontage along South Clay Street and adjacent to many other medical practices. Ennis Regional Medical Center, a 60-bed acute care hospital is located less than 5 minutes southwest of the property.
The Fresenius Medical Care lease consists of approximately 70% of the total rentable area and is guaranteed, by Fresenius’ corporate parent entity, Fresenius Medical Care Holdings, Inc. iKids Pediatric Dentistry and Orthodontics occupies the balance of the building. iKids is a 14-unit Dentistry and Orthodontics group that serves multiple areas throughout the Dallas/Ft. Worth Metroplex.
Fresenius SE& Co. KGAA (ETR: FRE) dba Fresenius Medical Care (FMC) is the world’s largest, integrated provider of products and services for individuals with chronic kidney failure, a condition that affects more than 2.2 million individuals worldwide. Through its network of 3,994 dialysis clinics in North America, Europe, Latin America, Asia-Pacific and Africa, FMC provides dialysis treatment to 345,096 patients around the globe. FMC is also the world’s largest provider of dialysis products, such as hemodialysis machines, dialyzers and related dialysis center disposable products.
Bedrock Investments Group (BIG) acquired 1.63 acres of fee simple ownership of land beneath this DaVita Dialysis Center. The tenant built a 5,768 sf freestanding building on the site. The ground lease was renewed in 2020 and fronts on Interstate 71. DaVita Healthcare Partners, Inc. (NYSE: DVA) operates over 2,100 dialysis centers nationwide. It was one of the larger stock holdings of Berkshire Hathaway. La Grange is the county seat of Oldham County and located within a short drive to Louisville, KY. The facility was developed as a build-to-suit for DaVita in 2005. It is strategically located near downtown La Grange and Baptist Health Center, an 120 bed acute care facility that is part of Baptist Health Systems, Kentucky’s major healthcare facility network. The facility currently houses fourteen (14) dialysis stations with internal capacity for expansion and adding additional treatment shifts. The property was acquired from the original Florida based developer, who wished to use the capital for other projects closer to his home base of operations. A new 100 room Holiday Inn Express is scheduled for completion in 2017 on the adjacent property which fronts I-71. A Holiday Inn Express was completed on the adjacent lot in 2017.
A 7,358 square foot freestanding dialysis facility is leased to Fresenius SE & Co. KGAA (ETR:FRE) dba Fresenius Medical Care (FMC). The site is ideally positioned on the hard corner of Howell Boulevard and 72nd Avenue, just 0.3 miles from interstate 110 (56,890 VPD). Baton Rouge is the state’s capital and the second largest city in Louisiana. The location was selected for its strategic position within a premier retail, commercial and residential corridor and proximity to Champion Medical Center, a new 25,000 sf specialized surgical hospital that opened in January 2014. Within 3 miles of the property, there exists approximately 1.7 msf of retail, 1.3 msf of industrial and 2,000 multifamily units and strong demographics (3-mile population of 63,130). Other major tenants with a presence in the immediate vicinity include: Chevron, Hilton Garden Inn, Microtel Inn and Suites, Subway, Burger King, IHOP, Sonic, Racetrac, Exxon, Advance Auto Parts, Days Inn, McDonald’s and Jack In The Box among others. The property is also less than 2.5 miles east of Southern University A&M College. Seller of the property was a REIT which needed to reduce its debt level. Bedrock Investments Group (BIG) used proceeds from the sale of the Glendale, AZ Taco Bell to complete a 1031 exchange for the acquisition. Investors received increased cash flow, additional lease term, and superior tenant credit.
The 7,032 sf facility is leased to Eye Surgery Center of Tulsa, a joint venture partnership of the Tulsa OK Ophthalmology ASC/LLC and AMSURG (51%), a nationally recognized leader in the development, management and operation of outpatient surgery centers. The property is located just ½ mile from the St. Francis Hospital medical campus in a major medical corridor. Approximately 120 surgical procedures per week are performed at this center. Over six (6) years remained on the lease at time of acquisition. Other nearby tenants include: Health Zone, Snap Fitness, Eastern Oklahoma Ear Nose & Throat, Tulsa Family Dental, Endodontic Specialists and Oklahoma Podiatric Med Association, among several others. The property was an “outlier” in the portfolio of a Washington state real estate investor. Bedrock Investments Group (BIG) acquired a tenants in common (tic) interest in this property in conjunction with one of their major investor partners to facilitate their 1031 exchange. AMSURG partners with more than 1,500 physicians at more than 220 outpatient surgery centers across the United States. AMSURG revenues for the first six months of 2012 were $461.8 million. The tenant completed renovation of the interior in 2016 and extended the original lease.
The 10,440 sf property was built in 2001 and listed for sale at $2,595,650. Fresenius Medical Care (FMC) has invested over $1,000,000 in capital improvements to the facility in remodeling and parking lot repairs, sealing and striping. It treats over 200 patient visits per week. Bedrock Investments Group (BIG) acquired a tenants in common (TIC) interest in the center to facilitate this 1031 exchange.
Fresenius SE& Co. KGAA (ETR: FRE) dba Fresenius Medical Care (FMC) is the world’s largest, integrated provider of products and services for individuals with chronic kidney failure, a condition that affects more than 2.2 million individuals worldwide. Through its network of 3,160 dialysis clinics in North America, Europe, Latin America, Asia-Pacific and Africa, FMC provides dialysis treatment to 257,916 patients around the globe. FMC is also the world’s largest provider of dialysis products, such as hemodialysis machines, dialyzers and related dialysis center disposable products. this FMC center is surrounded by numerous healthcare facilities, a medical center, and several hospitals. The original lease was extended for an additional seven (7) year period.
This Bedrock Investments Group’s (BIG) acquisition served as the “up-leg” of a 1031 exchange for the proceeds from Goodyear Orange Park (Jacksonville, FL) disposition. BIG acquired a fee simple ownership of a seasoned 5,961 sf DaVita Dialysis Center, which opened in 2008. DaVita Healthcare Partners, Inc. (NYSE: DVA), the dominant dialysis provider in Iowa, recently exercised an early lease renewal. This facility has twenty-four (24) dialysis stations with capacity for additional patients. The QIP score for 2012-2015 for this facility is 98; the national average is 81. Purchase price per sf is below replacement cost for a dialysis center. It is located in Marshalltown’s retail core, adjacent to the VA clinic, positioned on a national tenant retail corridor including Wal-Mart Superstore, JC Penney, Menards, Aldi, Dollar General, and Advance Auto Parts. The seller is a local developer/owner who wanted to capitalize a pending industrial project with proceeds from the sale.
Bedrock Investments Group (BIG) had the opportunity to acquire this freestanding, 7,400 sf medical buildings built in 1985/2015 on .975 acres (42,471 sq ft, 5.74% coverage). The Nova Medical Center is a beautiful well-located facility leased to Nova Medical Centers in Arlington, Texas. Nova Medical Centers has operated at this location since 2014 and, prior to moving in, the building was remodeled with more than $500,000 spent on the tenant’s interior finish-out. Nova Medical Centers recently executed a new 10-year lease The former owner replaced the roof in 2015. Nova Medical Centers began as a single facility formed 20 years ago in Conroe, Texas, to provide the highest level of healthcare to patients suffering from musculoskeletal injuries. Currently, Nova treats more than 40,000 injuries each year and has more than 600,000 patient visits in 12 months. Nova operates more than 47 occupational medicine facilities across Texas, Georgia, Tennessee, and Indiana. Nova Medical Centers is positioned where Interstate 20 and Little Road merge, with combined traffic counts in excess of 210,000 vehicles per day. The property has excellent visibility and great ingress and egress from Interstate 20. The area is extremely dense with more than 209,000 residents within a five-mile radius and an average household income of approximately $76,076. Surrounding retailers include Walmart Supercenter, Walgreens, McDonald’s, Sprouts, AutoZone, Starbucks, and Albertsons.
Fremont Health Center for Wound Healing provides specialized treatment for chronic or non-healing wounds and sores that have not significantly healed during the course of conventional treatment. These wounds can cause severe health risks and may result in life-threatening infections, possible amputation and debilitating health problems. State-of-the-art treatment is provided at the wound center, giving people with slow-healing wounds new treatment options. The comprehensive approach can heal wounds that have resisted other treatments, and help avoid loss of limbs, and reduce the incidence of recurrence. The Wound Center is on the campus of Fremont Medical Center.
The opportunistic acquisition was a result of a long-term relationship with the commercial real estate broker who represented the site and contacted Bedrock before marketing to the public. The primary lease term expires in 2027 and provides our partners an initial 7.25% unleveraged return on investment (ROI) that will increase at a rate of 3.0% per year. The seller was preparing for retirement and is liquidating his real estate portfolio.
The Fremont Health Center System was purchased by the Nebraska Methodist Hospital Group after Bedrock’s acquisition of the facility.
The ATI Physical Therapy property was an up leg to a 1031 exchange by a Bedrock investor partner. There was a need to cover existing debt (“boot”) and Bedrock 1st Mortgage provided funding for a five (5) year, $700,000.00 first mortgage at 50% loan to value (“LTV”). The property is a newly constructed net leased investment for ATI Physical Therapy, a major provider of outpatient physical therapy services. Bloomington is the 7th largest city in Indiana with a population of more than 85,000 people. It is also home to Indiana University, which enrolls more than 49,000 students and is the largest university in the state. This popular Big 10 town was recently ranked as “Top 10 Best Places to Live in the United States” by Money Magazine.
ATI is operating under a 10-year NNN lease to which Tenant reimburses landlord for all CAM and capital costs. There are 10% rent increases every 5 years, which helps hedge against future inflation and increases the property’s value over time. The property consists of a 3,000 sf building on 0.90 acres and was constructed in 2017. the facility is the tenant’s latest prototype and is of the highest quality construction.
This Bedrock Investments Group’s (BIG) acquisition served as the “up-leg” of a 1031 exchange for the proceeds from Goodyear Tire and Rubber location in Cape Coral Florida. The 3,500 square foot freestanding facility was built in 2016 and is leased to Aspen Dental under the terms of a 10-year agreement. The site is strategically located directly across the street from the Marshalltown Mall and Walmart Supercenter on Highway 14 (S Center St), which is the main retail corridor through Marshalltown. Nearby tenants include: Burger King, Subway, Aldi, Advance Auto Parts, Wells Fargo, UPS, Hobby Lobby, JC Penney, Arby’s, Papa Murphy’s, Goodwill, Kay Jewelers, Domino’s, AT&T and Walmart Supercenter. The site has excellent demographics with a population of over 29,165 residents with an average household income of $65,963 within a 5-mile radius of the facility.
This 4,231 square foot freestanding urgent care facility is leased to Hendrick Health System, the largest employer in Abilene. The site is ideally positioned on the signalized hard corner of 13th Street and Pine.
The Hendrick Urgent Care acquisition is an up leg to a 1031 exchange for a Bedrock LLC. and a Tenants in Common partner. Construction was completed in May 2020 under the terms of a 15-year NNN lease.
Hendrick Health System is affiliated with the Baptist General Convention of Texas. For more than 95 years, the Hendrick Health System name has been the healthcare leader in the Texas midwest. The adjacent Hendrick Medical Center is licensed for 540 beds, with a women’s center, rehabilitation hospital, cancer center, hospice center, NICU and numerous other innovative services.
The urgent care facility is also located adjacent to the Texas Tech University Hospital. The campus has a school of pharmacy and a school of nursing, in addition, Hendrick has bought a number of properties to build a block of state-of-the-art apartment housing for students attending the Abilene campus of Texas Tech Health.