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.
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