NET LEASE INVESTMENT OFFERING Wichita, Kansas · property located in Wichita, Kansas. The property...

NET LEASE INVESTMENT OFFERING

Integrated Healthcare Systems 9211 E 21st St NorthWichita, Kansas


NET LEASE INVESTMENT OFFERINGNET LEASE INVESTMENT OFFERING

TABLE OF CONTENTS

I. Executive Summary

Executive SummaryInvestment HighlightsProperty OverviewFloor Plan

II. Location Overview

Site PlanAerialsMapPhotos

III. Market & Tenant Overview

Tenant ProfileLocation OverviewDemographics


DISCLAIMER STATEMENT

The information contained in the following Offering Memorandum is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from The Boulder Group and should not be made available to any other person or entity without the written consent of The Boulder Group.

This Offering Memorandum has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. The Boulder Group has not made any investigation, and makes no warranty or representation.

The information contained in this Offering Memorandum has been obtained from sources we believe to be reliable; however, The Boulder Group has not verified, and will not verify, any of the information contained herein, nor has The Boulder Group conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein.

DISCLAIMER STATEMENT:


EXECUTIVE SUMMARY

The Boulder Group is pleased to exclusively market for sale a single tenant Integrated Healthcare Systems property located in Wichita, Kansas. The property was built-to-suit for the tenant in 2000 and expanded by approximately 8,000 SF in 2004. The lease was recently extended until December 31, 2028 which demonstrates the tenant’s commitment to the location and there is a rental escalation in July 2021. Additionally, the tenant is spending approximately $562,000 in improvements to upgrade the interior of the facility and to add new doctor’s offices. This facility specializes in Dermatology, Dietitian, Family medicine, On-site laboratory and x-ray services, Pediatrics and Podiatric surgery.

The 30,472 square foot property is located at the corner of a signalized intersection along East 21st Street North, a primary east-west thoroughfare. The property is located in a premier medical and retail corridor with Target, Cabela’s, Walgreens, Fresenius, Whole Foods, Dick’s Sporting Goods and numerous medical offices and hospitals. There are approximately 50,000 people living within three miles of the property with an average household income of $104,890. Wichita is the largest city in Kansas and the principal city of the Wichita metropolitan area which had an estimated population of 644,888 in 2018. The city has become a dominant U.S. aircraft production hub known as “The Air Capital of the World.” Textron Aviation, Learjet, Airbus, and Spirit AeroSystems continue to operate design and manufacturing facilities in Wichita, and the city remains a major center of the American aircraft industry. Wichita is also home to McConnell Air Force Base, and Wichita Dwight D. Eisenhower National Airport, the largest airport in Kansas.

Ascension Via Christi, a part of Ascension, has a rich history of serving the people of Kansas and the surrounding region dating back more than 100 years to the healing ministries of the founding congregations. Today, Ascension Via Christi is the largest provider of healthcare services in Kansas. They serve Kansas and northeast Oklahoma through their doctors, hospitals, senior villages and health services. Integrated Healthcare Systems, Inc. is a wholly owned subsidiary of Ascension which is Moody’s rated Aa2 (investment grade).

EXECUTIVE SUMMARY:


INVESTMENT HIGHLIGHTS

• The lease was recently extended which demonstrates the tenant’s commitment to the location

• Property was built-to-suit for the tenant in 2000 and expanded by approximately 8,000 SF in 2004

• Tenant is spending approximately $562,000 in improvements to upgrade the interior of the facility and to add new doctor’s offices

• Integrated Healthcare Systems, Inc. is a wholly owned subsidiary of Ascension which is Moody’s rated Aa2 (investment grade)

• Located at the corner of a signalized intersection along East 21st Street North, a primary east-west thoroughfare

• Positioned in a premier medical and retail corridor with Target, Cabela’s, Walgreens, Fresenius, Whole Foods, Dick’s Sporting Goods and numerous medical offices and hospitals

• Approximately 50,000 people living within three miles of the property with an average household income of $104,890

• Rental escalation in July 2021

INVESTMENT HIGHLIGHTS:


PROPERTY OVERVIEW

PROPERTY OVERVIEW:

Price: $8,438,400

Cap Rate: 6.50%

Net Operating Income: $548,496

Lease Expiration Date: December 31, 2028

Renewal Options: One 5-Year Remaining

Rental Escalations: $578,968 – 7/1/2021 $655,148 in renewal option

Tenant: Integrated Healthcare Systems, Inc. dba Ascension Medical Group Via Christi

Year Built/Renovated: 2000/2004/2018

Lease Type: NN (Roof, Structure, HVAC Replacement)

Building Size: 30,472 SF

Land Size: 3.12 AC

Parking Spaces: 171


FLOOR PLAN


AERIAL


N

E 21st S N (13,914 VPD)

Route 96 (16,380 VPD)


AERIAL


N

Coleman Middle School

Gammon Elementary

School

Colonel James Jabara Airport


PRIV

AT

E S

TR

EE

T

E 21ST S N (13,914 VPD)


SITE PLAN

N


MAPS

N


PHOTOS


TENANT PROFILE

Ascension Via Christi, a part of Ascension, has a rich history of serving the people of Kansas and the surrounding region dating back more than 100 years to the healing ministries of the founding congregations. Today, Ascension Via Christi is the largest provider of healthcare services in Kansas. They serve Kansas and northeast Oklahoma through their doctors, hospitals, senior villages and health services.

Ascension is a faith-based healthcare organization dedicated to transformation through innovation across the continuum of care. As one of the leading non-profit and Catholic health systems in the U.S., Ascension is committed to delivering compassionate, personalized care to all, with special attention to persons living in poverty and those most vulnerable. In FY2018, Ascension provided nearly $2 billion in care to persons living in poverty as well as providing other community benefit programs. Ascension includes approximately 156,000 associates and 34,000 aligned providers. The national health system operates more than 2,600 sites of care – including 151 hospitals and more than 50 senior living facilities – in 21 states and the District of Columbia, while providing a variety of services including physician practice management, venture capital investing, investment management, biomedical engineering, facilities management, clinical care management, information services, risk management, and contracting through Ascension’s own group purchasing organization.

Credit Rating (Moody’s): Aa2 – Investment Grade

TENANTPROFILE:


LOCATION OVERVIEW

Wichita is the largest city in Kansas and the county seat of Sedgwick County. Wichita is the principal city of the Wichita metropolitan area which had an estimated population of 644,888 in 2018.

Located in south-central Kansas on the Arkansas River, Wichita began as a trading post on the Chisholm Trail in the 1860s and was incorporated as a city in 1870. It became a destination for cattle drives traveling north from Texas to Kansas railroads, earning it the nickname “Cowtown.” As an industrial hub, Wichita is a regional center of culture, media, and trade. It hosts several universities, large museums, theaters, parks, and entertainment venues, notably Intrust Bank Arena and Century II Performing Arts & Convention Center. The city’s Old Cowtown Museum maintains historical artifacts and exhibits on the city’s early history. Wichita State University is the third-largest post-secondary institution in the state.

In the 1920s and ‘30s, businessmen and aeronautical engineers established aircraft manufacturing companies in Wichita, including Beechcraft, Cessna, and Stearman Aircraft. The city has become a dominant U.S. aircraft production hub known as “The Air Capital of the World.” Textron Aviation, Learjet, Airbus, and Spirit AeroSystems continue to operate design and manufacturing facilities in Wichita, and the city remains a major center of the American aircraft industry. Wichita is also home to McConnell Air Force Base, and Wichita Dwight D. Eisenhower National Airport, the largest airport in Kansas.

As an industrial hub, Wichita is a regional center of culture, media, and trade. It hosts several universities, large museums, theaters, parks, and entertainment venues, notably Intrust Bank Arena and Century II Performing Arts & Convention Center. The city’s Old Cowtown Museum maintains historical artifacts and exhibits on the city’s early history.

LOCATION OVERVIEW:


DEMOGRAPHICS

DEMOGRAPHIC REPORT: Population 1 Mile 3 Mile 5 Mile

Total Population 5,019 49,702 147,683

Total Households 2,165 20,700 58,857

Income

Average Household Income $153,473 $104,890 $83,071


Randy [email protected]

Jimmy [email protected]

3520 Lake Avenue, Suite 203Wilmette, IL 60091

www.bouldergroup.com

NET LEASE INVESTMENT OFFERING Wichita, Kansas · property located in Wichita, Kansas. The property...

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