Single Tenant NNN Medical With Increases
Short window opportunity.
Confidential, off-market and given to us for a short period to see to our 30+ year direct principal buyers.
After that, this asset may, and probably will, hit the open market.
$6MM single tenant, NNN+, medical building.
Leased to a major tenant with a public credit rating.
This tenant has been at this location for 25 yrs and they have invested significant $$ into this asset.
The tenant is currently in their final option period on the lease.
Term goes through July 31st, 2028, but they have the option to terminate any time after October 1st, 2025 with 180 days notice.
The monthly rent is now $34,619.82, there are annual escalations of 3% on August 1st throughout the remaining term.
On top of that the owners collect a 3% management fee calculated on the base rent, as per the lease.
This is a NNN Lease with the tenant responsible for all costs including taxes and insurance.
There is no chance of taking out the cancellation option or and/or extending the lease. The tenant has been at this location since 2000, and the building was constructed specifically for their needs. According to the tenant, it is one of their top three performing locations worldwide so it's unlikely they will be vacating or exercising the termination option. And by keeping the 1 yr term in the contract, they are able to lower their long term liabilities number on their balance sheet which is critical for large multinational companies.
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