Tuesday, January 6, 2015

Net Leased Single Tenant Office Building | S&P: AA+ Tenant | Charlotte, NC


Investment Highlights

Price: $11,600,000 - Cap Rate: 6.50%

  • Investment Grade Tenant - The Charlotte-Mecklenburg Hospital Authority has a strong financial balance sheet, carrying an investment grade credit rating (Standard & Poors: AA+).


  • Market Dominant Health System - Carolinas HealthCare System's acute care facilities account for almost $11 billion in annual patient revenue in the Charlotte MSA.


  • Annual Rental Increases - 2.5% annual rental increases throughout the initial lease term.


  • Significant Recent Investment in Improvements - Over $3 million has been invested by current ownership in the facility and parking expansion. Additionally, another $15 per square foot in tenant improvements was completed in 2014.


  • Long-Term Lease - The subject property has 9.75 years left on the original lease along with two, five year options to extend the lease.


  • Strong Trade Area - The subject property is well-located just off Interstate 77 and boasts very strong demographics - double digit growth rates in a 1, 3, and 5 mile radius. There is a strong corporate tenant mix in the area, which includes Microsoft, Time Warner Cable and the Federal Bureau of Investigation.


  • Below Market Rent - Base rent in the subject property is $11/SF Net. Rent for similar properties in the surrounding area averages $20/SF gross.



Additional Tags:
office, STNL property, building, 1031 Exchange Properties, single tenant, NNN Properties, architecture, off market triple net

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