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CHI FRANCISCAN HEALTH ACUTE REHABILITATION MEDICAL CENTER, Tacoma, WA

CHI FRANCISCAN HEALTH ACUTE REHABILITATION MEDICAL CENTER

Tacoma, WA

Price $41,630,000
Cap Rate 5.75%
NOI $2,393,697
Lease Term 15 Years
Lease Type NNN, with Tenant Responsible for All Taxes, Insurance, Utilities, and Maintenance, Including Roof, Structure, and Parking Lot
Rental Increases 2% Annual Rental Increases
Year Built 2018
Building Size 64,800 SF
Lot Size 4.95 Acres (215,622 SF)
Status Available
Lead Broker Information Michael T. Yuras, CCIM
Cushman & Wakefield
415.481.0788
michael.yuras@cushwake.com
CA RE License #01823291

Scott Crowle
Senior Director
415.604.4288
scott.crowle@cushwake.com
CA RE License #01318288

Vincent Aicale
Cushman & Wakefield
415.690.5522
vince.aicale@cushwake.com
CA RE License #01728696

Ryan Forsyth
Cushman & Wakefield
415.413.3005
ryan.forsyth@cushwake.com
CA RE License #01716551

Investment Highlights

RARE SINGLE TENANT NNN LEASE TO STRONG CORPORATE HEALTHCARE PARTNERSHIP IN INCOME TAX FREE STATE
» Lease guaranteed by local market leader CHI Franciscan Health, a premier Northwest health system, and Kindred Healthcare, a leading provider of post-acute care services
» CHI Franciscan Health is one of the largest health systems in Washington and is an affiliate of Catholic Health Initiatives, one of the nation’s largest healthcare systems
» Kindred Healthcare (recently acquired by Humana “NYSE: HUM” and TPG Capital for $4.1 billion in cash) is the largest diversified post-acute healthcare provider in the U.S.
» Annual 2% rental increases, providing an excellent hedge against inflation
» No landlord management

NEW CLASS-A INSTITUTIONAL QUALITY MEDICAL CENTER IN GROWING HEALTHCARE MARKET
» 60-bed, state-of-the-art acute rehabilitation medical center with 130 clinical staff members and caregivers
» Specialized treatment programs for stroke, brain injury, neurological conditions, trauma, spinal cord injury, and orthopedic injury
» CHI Franciscan Health Rehabilitation Medical Center is the first freestanding inpatient rehabilitation medical center in the Puget Sound region and will nearly double current capacity and meet increasing demand for inpatient rehabilitation
» Will replace the rehabilitation department at St. Joseph Medical Center, which served more than 600 patients in its inpatient rehabilitation unit in 2016
» The number of patients seeking rehabilitation services is expected to increase as residents of the South Sound age

STATE-OF-THE-ART 2018 CONSTRUCTION
» 60 private rooms with in-suite toilet & shower rooms, physical therapy gym, full commercial kitchen, and dining room
» Healthcare usage is indefinitely entitled and protected by State Certificate of Need “CON” limiting competition
» Detailed floor plan available upon execution of a Confidentiality Agreement

Click Here to Download Offering Memorandum


Property Description

The property is located in a high-traffic commercial and residential area in west Tacoma just off of Route 16. Located on South Vassault Street, the property enjoys immediate access to 6th Avenue (19,476 AADT), 12th Street (15,612 AADT), Pearl Street (23,184 AADT), and Mildred Street (16,797 AADT), as well as Route 16, which experiences a traffic volume of 94,000 vehicles per day near the property. The property is within walking distance of several large shopping centers located along 6th Avenue and Mildred Street, which feature notable tenants like Fred Meyer, Rite Aid, Harbor Freight Tools, Safeway, Petco, Dollar Tree, and many others.

The property is centrally located less than four miles from downtown Tacoma. The property is across from Tacoma Community College, with 6,999 students, and several schools are located in the nearby area, including Wilson High School (1,268 students), the University of Puget Sound (2,826 students), and Foss High School (887 students). Adjacent to the property is Hunt Middle School, which will undergo a $48 million renovation and reconstruction and is expected to reopen in 2021. The property is also near a number of recreation sites, including several golf courses and Point Defiance Park, which is visited by over 3.1 million people each year. Additionally, the property is surrounded by densely populated residential areas and is close to a number of large employment centers; 207,156 residents live and 130,351 daytime employees work within a five-mile radius of the property, providing a strong customer base.

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