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Community Rehabilitation Hospital South, Greenwood, IN

Community Rehabilitation Hospital South

Price $26,817,000
Cap Rate 5.65%
NOI $1,515,150
Lease Term 15 Years with 13+ Years Remaining
Lease Type Absolute NNN Lease, with Tenant Responsible for All Taxes, Insurance, and Maintenance, Including Roof, Structure, and Parking Lot
Rental Increases 2.25% Annual Rental Increases During the Initial Term and First Two Options
Year Built 2008 | 2018 - Upgraded to an Acute Rehabilitation Hospital
Building Size 53,560 SF
Lot Size 4.94 Acres (215,186 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
Managing 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 ABSOLUTE NNN LEASE TO STRONG CORPORATE HEALTHCARE PARTNERSHIP
» Long-term lease guaranteed by local market leader Community Health Network, a premier Indiana health system, and Kindred Healthcare, a leading provider of post-acute care services
» Lease entity is a joint venture between Community Health Network and Kindred, a built-in referral source
» Community Health Network is ranked among the nation’s most integrated healthcare systems (1,200 staffed beds, 2,000 physicians), rated “A2” from Moody’s and “BBB” from S&P
» Kindred Healthcare (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 2.25% rental increases, providing an excellent hedge against inflation
» Absolute NNN lease requires no landlord management, ideal for an out-of-area investor

44-BED INPATIENT ACUTE REHABILITATION MEDICAL CENTER IN DENSELY POPULATED, GROWING, AND AFFLUENT AREA
» Integrated with Community Health Network system and located less than four miles away from Community Rehabilitation Hospital South acute care hospital, the majority referral source
» Community Rehabilitation Hospital South is a 44-bed, state-of-the-art, three-story, 54,000 SF freestanding rehabilitation hospital
» Provides post-acute care for patients with a broad range of diagnoses related to stroke, brain injury, spinal cord injury, neuromuscular diseases, orthopedic, amputations, and related disorders
» Community Rehabilitation Hospital South opened in August 2018 to expand access to the exceptional rehabilitation care found at Community Rehabilitation Hospital North
» Healthcare usage is indefinitely entitled and protected by State Certificate of Need “CON”, limiting competition

STRATEGIC LOCATION IN TOP U.S. MARKET
» Additional referral source, Saint Francis Hospital and Health Center South, is located less than two miles away
» Indianapolis is the fastest growing MSA in the Midwest and the 17th most populous city in the U.S. (1.97 million people)
» Indianapolis is the 27th largest economy in the U.S. based on the finance, insurance, healthcare, government, and manufacturing sectors
» The Indiana University Medical Center has a faculty of over 1,100 people and conducts world class research at their $1 billion downtown campus

STATE-OF-THE-ART CONSTRUCTION
» 2018 state-of-the-art remodel featuring all private rooms, large interdisciplinary gyms, a dialysis suite, transitional living apartments, a therapeutic courtyard with golf, basketball, and varied surfaces, and more
» The facility is located on the site of a former acute care hospital owned by Kindred Healthcare, demonstrating long-term dedication to the location



Property Description

The property is strategically located along Greenwood Springs Drive, with excellent visibility and access from neighboring Interstate 65, which experiences a high-traffic count of 68,533 vehicles per day. The site also resides within three miles of several highly trafficked Greenwood thoroughfares including U.S. Highway 31 (37,553 AADT), County Line Road (31,073 AADT), and Emerson Avenue (19,406 AADT). The site is located in a densely populated and growing area, with 156,913 residents living within a five-mile radius of the site. Visibility is increased by the property’s central location in an affluent area, with an average household income of $80,434 within a five-mile radius of the site. The property is primed to grow along with the surrounding area, with a projected 15 percent average annual household income increase within one mile of the site in the next five years.

The property benefits from its proximity near large employers, retailers, and community hubs, making it easily accessible to its patients. The location is immediately adjacent to Greenwood Springs Shopping Center, a major Greenwood shopping center featuring 20 stores and 231,000 SF of retail space. Surrounding the location is a strong mix of well-established local and national retailers including Walmart Supercenter, Costco, Kroger, Sam’s Club, Buffalo Wild Wings, Subway, and many more. Visibility is increased by the site’s proximity one mile from Indy South Greenwood Airport, which experiences approximately 30,000 aircraft operations per year. The site is also a 20-minute drive from Downtown Indianapolis.

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