FOLEY GULF SHORES, AL - LoopNet...BUILDING ONE 1801 N. McKenzie Street, Foley, Alabama APN...

I N V E S T M E N T H I G H L I G H T S

3 M E D I C A L O F F I C E B U I L D I N G S

O F F E R I N G M E M O R A N D U M

F O L E Y G U L F S H O R E S , A L™


B R YA N T H O O V E RSenior Associate DIRECT 310.579.9693MOBILE [email protected] # 01368589 (CA)

EXCLUSIVELY LISTED BY

K Y L E M A T T H E W SBroker of RecordLicense # 110253 (AL)

R O Y H A N L I N , C C I M , C S MColdwell Banker CommercialMcLain Real Estate

MOBILE [email protected]


INVESTMENT HIGHLIGHTS

PROPERTY OVERVIEW

FINANCIAL OVERVIEW

TENANTS OVERVIEW

4

7

16

19AREA OVERVIEWS

13

3 M E D I C A L O F F I C E B U I L D I N G S | 3


I N V E S T M E N TH I G H L I G H T S



TRAFFIC COUNTS

Mckenzie St : ±28,000 VPD

LIST PRICE

$10,200,000

PROPERTY ADDRESS

• 1801 N Mckenzie St, Foley AL 36535 • 1851 N Mckenzie St, Foley AL 36535• 150 W Peachtree Ave, Foley AL 36535

LEASABLE AREA

±60,756 Square Feet

LAND AREA

• Building One - ±28,093 SF• Building Two - ±36,694 SF• Building Three - ±4,500 SF

PARCEL MAP

YEAR BUILT

• Building One - 1971/2002• Building Two - 2007• Building Three - 2002


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P R O P E R T YOV E R V I E W

• The medical office buildings are priced below replacement costs.

Peachtree Professional is priced, well below replacement costs. (Figures based off purchased price of $10.2MM. Joe Still Building Company, Huntsville, indicated typical medical building replacement costs are about $300/sf).

• Value-add opportunity for investors

The consolidated Rent Roll indicates a potential of about $319K of additional annual rental income from the vacant space. Potentially higher, if there’s an increase in the market value of the vacant space and by adding the operating cost recovery to new leases. Proforma indicates the property increasing about 28% over a seven-year hold.(Purchase Price @ $10.2MM Value Year 7 @ $13.1MM = 28% value increase.)

Annual Rent from Leased SfAnnual

Potential Rent from Vacant SF

Total Annual Current Rent plus Potential Rent

Building One $142,210 $242,268 $384,478

Building Two $583,536 $77,634 $661,170

Building Three $100,500 $0 $100,500

$826,246 $319,902 $1,146,148

• Potential high 20% leveraged internal rate of return

The 20% leveraged IRR is dependent on the loan amount, and terms. (*BancopSouth quoted rates in the 5.25% range for 20-year amortization, with a five year call, and requires an 80% LTV.)


Disclaimer: The information projected with this proforma cannot be warranted or guaranteed for accuracy. We encourage investors to make independent investigations before acting on the information presented.



P R O P E R T YOV E R V I E W

P R O P E R T Y O V E R V I E W


B U I L D I N G O N E1801 N. McKenzie Street,

Foley, AlabamaAPN 54-04-17-4-000-033

Approximately 28,093 Square feetBuilt 1971/2002

Gutted to metal frame and enlarged in 2002

36% Occupied

B U I L D I N G T W O1851 N. McKenzie Street,

Foley, AlabamaAPN: 54-04-17-4-000-033.001

Approximately 36,694 Square feet, two (2) stories Built 2007

86% Occupied

B U I L D I N G T H R E E150 W. Peachtree Avenue,

Foley, Alabama.APN: 54-04-17-4-000-033.003

Approximately 4,500 Square feetBuilt 2002

100% Occupied - Single Tenant DaVita

*SqFt is based off the leases provided

*All three (3) building are on a contiguous tract, approximately 3.93 acres (85 Feet above sea level)

City of Foley, County of Baldwin – No zoning


I N V E S T M E N T H I G H L I G H T SP R O P E R T Y O V E R V I E W


1 7 M I L E S

3 0 M I L E S

3 6 M I L E S

5 3 M I L E S

4 8 M I L E S

5 1 M I L E S

5 2 M I L E S

S U R R O U N D I N G H O S P I TA L S

PEACHTREE PROFESSIONAL CENTER

1 0 | O F F E R I N G M E M O R A N D U M


I N T E R I O R P H O T O S - B U I L D I N G 2


3 M E D I C A L O F F I C E B U I L D I N G S | 1 1

S U R R O U N D I N G T E N A N T S

SUB J E C TP ROP E R T Y

T A N G E R O U T L E T SF O L E Y

M C K E N Z I E S T.± 2 8 , 0 0 0 V P D




G U L F S H O R E B E A C H E S




F I N A N C I A LOV E R V I E W

F I N A N C I A L O V E R V I E W




Location Foley, ALProperty Type Medical OfficeList Price $10,200,000Three Building Square Footage 60,756

P E A C H T R E E P R O F E S S I O N A L C E N T E R :

P R O F O R M A

Holding Period Years 1 2 3 4 5 6 7

Gross Income

Peachtree Building One $353,651 $374,798 $412,239 $421,331 $431,264 $441,462 $451,932

Peachtree Building Two 630,867 652,377 662,617 667,156 688,969 699,172 709,006

Peachtree Building Three 100,500 103,941 107,504 111,190 115,006 117,424 118,203

Total Gross Income 1,085,018 1,131,116 1,182,360 1,199,677 1,235,239 1,258,058 1,279,141 Less: Vacancy & Credit Loss 254,826 157,520 28,586 29,324 30,082 30,859 31,656

Effective Income $830,192 $973,596 $1,153,774 $1,170,353 $1,205,157 $1,227,199 $1,247,485

Less: Operating Expenses

Peachtree Building One 90,744 92,754 94,810 96,913 99,065 101,267 103,519

Peachtree Building Two 113,694 114,298 114,915 115,543 116,185 116,839 117,506

Peachtree Building Three 2,166 2,166 2,166 2,166 2,166 2,166 2,166

Management Fee 33,208 38,944 46,151 46,814 48,206 49,088 49,899

Total Operating Expenses 239,812 248,162 258,042 261,436 265,622 269,360 273,090

Net Operating Income $590,380 $725,435 $895,732 $908,916 $939,535 $957,839 $974,395



Gross Square

Footage

Total Rentable

SF

SF Leased

% Leased SF Vacant % Vacant

Annu-al Rent

from Leased Sf

Annual Potential Rent

from Vacant SF

Total Annual Current Rent plus Potential

Rent

Peachtree Profes-sional Building One 28,093 24,943 8,913 36% 16,030 64% $142,210 $242,268 $384,478

Peachtree Profes-sional Building Two 36,693 31,073 26,760 86% 4,313 14% $583,536 $77,634 $661,170

Peachtree Profes-sional Building Three 4,740 4,740 4,740 100% 0 0 $100,500 $0 $100,500

Total 69,526 60,756 40,413 67% 20,343 33% $826,246 $319,902 $1,146,148

P E A C H T R E E P R O F E S S I O N A L C E N T E R :

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



LIST PRICE

$10,200,000


T E N A N T SOV E R V I E W

T E N A N T S O V E R V I E W


TENANT OVERVIEWDaVita Inc., a Fortune 500® company, is the parent company of DaVita Kidney Care and HealthCare Partners. DaVita Kidney Care is a leading provider of kidney care in the United States, delivering dialysis services to patients with chronic kidney failure and end-stage renal disease. DaVita Kidney Care consistently differentiates itself from other kidney care companies and surpasses national averages for clinical outcomes. Through its Kidney Care division, the firm is one of the US’ largest providers of dialysis, providing administrative services to more than 2,200 outpatient centers across the US; it serves some 180,000 patients. The company also offers home-based dialysis services, as well as inpatient dialysis in about 900 hospitals. It operates two clinical laboratories that specialize in routine testing of dialysis patients and serve the company’s network of clinics. Subsidiary HealthCare Partners (HCP) operates primary care clinics and physician practices in several states.

T E N A N T S O V E R V I E W

TENANT OVERVIEWSacred Heart Medical Group is the region’s largest network of primary care physicians with locations in Escambia, Santa Rosa, Okaloosa, Walton, Bay, Gulf and Franklin Counties in Florida as well as Baldwin County, Alabama. Sacred Heart Medical Group offers the services of more than 150 specialists and primary care physicians in Northwest Florida and South Alabama. Currently, Sacred Heart Medical Group’s 288 physicians cover 42 specialty areas of medicine.

TENANT OVERVIEWAmedisys, the second largest home health company in the U. S. Southern Cancer Center, owned by McKesson, and four locations in the area. Amedisys helps people recover from illness, injury or surgery, avoid unnecessary rehospitalization and manage long-term conditions with nursing, therapy and other services at home, all coordinated with physicians and other healthcare providers. They are here to provide physical, emotional, and spiritual care and support during a life-limiting illness, along with help for families and caregivers. Address: 1809 N McKenzie St, Foley, AL 36535


TENANT OVERVIEWSouth Baldwin Regional Medical Center is your community healthcare provider, a 112-bed facility offering inpatient, outpatient, emergency, diagnostic and surgical care. They believe in the power of people to create great care. They are 650 healthcare professionals strong, and are the proud recipients of many awards, including the Press Ganey Summit Award, The Joint Commission’s Top Performer in Key Quality Measures and Modern Healthcare Best Places to Work. And they work hard every day to be a place of healing, caring and connection for patients and families in the community we call home.

TENANT OVERVIEWThe company provides diagnostic, drug development and technology-enabled solutions for more than 120 million patient encounters per year. LabCorp typically processes tests on more than 2.5 million patient specimens per week and supports clinical trial activity in approximately 100 countries through its industry-leading central laboratory business, generating more safety and efficacy data to support drug approvals than any other company.

TENANT OVERVIEWENT Centers of Excellence provides complete ENT care for the entire family in Foley and Daphne, Alabama (just 15 minutes from Mobile, AL). Dr. Keith Kowal and his team offer comprehensive diagnosis and treatment for all types of ear, nose and throat conditions. They see Baldwin County and surrounding patients of all ages, including adult and pediatric patients. We are a full-service family practice for all your ear, nose, and throat needs.

T E N A N T S O V E R V I E WT E N A N T S O V E R V I E W

TENANT OVERVIEWFor more than thirty years, Southern Cancer Center has made important contributions to the fight against cancer and diseases of the blood by offering advancements in technology, treatment, early detection, and clinical trials. Their clinical trials provide patients the opportunity for a better outcome and quality of life, while playing a vital role in the fight against cancer.

The health of your specialty practice goes beyond just pharmaceutical distribution, and so does McKesson’s support. They work with you to understand your entire business and offer you ways to achieve the unique goals of your practice. McKesson’s broad portfolio of provider solutions and services for community practices enables you to run your practice your way, while increasing your efficiency, reimbursement and time for patient care.



A R E AOV E R V I E W

A R E A O V E R V I E W




Foley is a coastal community located in Southern Alabama. Foley is located in Baldwin County, Alabama and is a principal city of the Daphne-Fairhope-Foley Metropolitan Statistical Area.

Foley is a community where genuine Southern charm unites with an array of attractions, events, accommodations, and restaurants. Foley is an exciting destination with plenty of activities and sites to choose from. From the unique local shops and artists of the quaint and historic downtown, to intriguing museum exhibits and laid-back water adventures.

Foley was ranked by Niche.com as one of the best towns for outdoor activities in Alabama. Visitors can explore the still water rivers on an Eco-Kayak Tour as well as the Graham Creek Nature Preserve. Foley’s Graham Creek Nature Preserve offers canoes and kayak launches, hiking and biking trails, a golf course, picnic areas, and bird watching.

F O L E Y , A L

Located only miles north of the Gulf Shore, Foley offers plenty of dining options from southern BBQ to Alabama seafood fresh off the boat. The Coastal Alabama Farmers and Fishermen’s Market is constantly packed with people and a great place to buy fruits and vegetables picked fresh every morning in Baldwin County. In addition to fresh seafood, organic steaks, freshly baked breads and dessert the open-air market is also a great spot for rustic-themed events.

Foley also offers world-class shopping for any niche from specialty stores and local boutiques to the Tanger Outlet Mall. At the Tanger Outlet mall shoppers can enjoy 150 outlet stores featuring a variety of brand-name and designer outlet stores.

A T T R A C T I O N S

O N E O F T H E B E S T T O W N S F O R

O U T D O O R A C T I V I T I E S




F O L E Y , A L H I G H L I G H T S

• Foley/Gulf Shores recognized by the US Chamber of Commerce as one of the top ten best cities to live in Alabama.

• The 2017 US Census Bureau listed Baldwin County as ‘The 11th Fastest Growth MSA in the U.S.’

• Population growth along the coastline of the Gulf of Mexico is outpacing much of the U.S., growing at a faster pace than both the East and West Coasts

P E R C E N TA G E C H A N G E I N P O P U L A T I O N

BY C O A S T L I N E R E G I O N : 2 0 0 0 T O 2 0 1 7

• Peachtree Professional Center is located in Foley, Alabama, a smaller city in south Baldwin County, Alabama, with a population of about 18,500 people. Median household income is above the state average at about $57,678. Foley is known as a great and charming retirement area because of its proximity to the beautiful Alabama beaches, about eight miles away. Also, the cost of living is ten percent below the national average. For these reasons the population is older (~48.2 years) than the national average, and presumably the need for medical care is higher.

• Located adjacent to the campus of South Baldwin Regional Medical Center, a 112 – beds acute care hospital with 725 employees including 238 physicians. The Medical Center was named Guardian of Excellence Award winner by Press Ganey Associates, Inc. Recognition Awards for quality include selected as one of Modern Healthcare’s Best Places to Work in Healthcare Top 100 (7th Year in a row). *Source - https://www.southbaldwinrmc.com/hospital-about-us

• Surrounding Hospitals include: Thomas Hospital - 17 miles, Ascension Medical - 30 Miles, Infirmary Hospital- 36 miles, West Florida Hospital- 48 Miles, Sacred Heart Hospital - 51 Miles, Baptist Hospital - 52 Miles, Springhill Memorial - 53 Miles

O N E O F T H E B E S T T O W N S F O R

O U T D O O R A C T I V I T I E S


This Offering Memorandum contains select information pertaining to the business and affairs of DaVita Strip to Peach Tree professional Center located at 1801 -1851 N. McKenzie Street and 150 W. Peachtree Avenue in Foley, AL . It has been prepared by Matthews Real Estate Investment Services. This Offering Memorandum may not be al l-inclusive or contain al l of the information a prospective purchaser may desire. The information contained in this Offering Memorandum is confidential and furnished solely for the purpose of a review by a prospective purchaser of the Property. It is not to be used for any other purpose or made available to any other person without the written consent of Seller or Matthews Real Estate Investment Services. The material is based in part upon information supplied by the Seller and in part upon financial information obtained from sources it deems reliable. Owner, nor their officers, employees, or agents makes any representation or warranty, express or implied, as to the accuracy or completeness of this Offering Memorandum or any of its contents and no legal l iabil ity is assumed or shall be implied with respect thereto. Prospective purchasers should make their own projections and form their own conclusions without reliance upon the material contained herein and conduct their own due dil igence.

By acknowledging your receipt of this Offering Memorandum for the Property, you agree:

1 . The Offering Memorandum and its contents are confidential ;

2. You wil l hold it and treat it in the strictest of confidence; and

3. You wil l not, directly or indirectly, disclose or permit anyone else to disclose this Offering Memorandum or its contents in any fashion or manner detrimental to the interest of the Seller.

Owner and Matthews Real Estate Investment Services expressly reserve the right, at their sole discretion, to reject any and all expressions of interest or offers to purchase the Property and to terminate discussions with any person or entity reviewing this Offering Memorandum or making an offer to purchase the Property unless and until a written agreement for the purchase and sale of the Property has been fully executed and delivered.

If you wish not to pursue negotiations leading to the acquisition of the Property or in the future you discontinue such negotiations, then you agree to purge all materials relating to this Property including this Offering Memorandum.

A prospective purchaser’s sole and exclusive rights with respect to this prospective transaction, the Property, or information provided herein or in connection with the sale of the Property shall be l imited to those expressly provided in an executed Purchase Agreement and shall be subject to the terms thereof. In no event shall a prospective purchaser have any other claims against Seller or Matthews Real Estate Investment Services or any of their affi l iates or any of their respective officers, Directors, shareholders, owners, employees, or agents for any damages, l iabil ity, or causes of action relating to this solicitation process or the marketing or sale of the Property.

This Offering Memorandum shall not be deemed to represent the state of affairs of the Property or constitute an indication that there has been no change in the state of affairs of the Property since the date this Offering Memorandum.

C O N F I D E N T I A L I T Y & D I S C L A I M E R S TA T E M E N T


EXCLUSIVELY LISTED BY

O F F E R I N G M E M O R A N D U M

K Y L E M A T T H E W SBroker of Record

License # 110253 (AL)

B R YA N T H O O V E RSenior Associate

DIRECT 310.579.9693MOBILE 310.774.2163

[email protected] # 01368589 (CA)

R O Y H A N L I N , C C I M , C S MColdwell Banker Commercial

McLain Real Estate

MOBILE [email protected]

3 M E D I C A L O F F I C E B U I L D I N G S

F O L E Y , A L

FOLEY GULF SHORES, AL - LoopNet...BUILDING ONE 1801 N. McKenzie Street, Foley, Alabama APN...

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