CSRA NC MOB, DST
Location: 1728 Sunrise Highway, Merrick, NY 11566
INVESTMENT COST: $8,020,000
EQUITY RAISE: $3,120,000
- CASH ON CASH RETURN YR 1: 6.25%
- LOADED LTV: 61.10%
- SENIOR LOAN: $4,900,000
Orlin & Cohen Orthopedic Group is the largest private orthopedic practice in New York State. The practice operates orthopedic, pain management, diagnostic physical therapy and occupational therapy in seven facilities throughout Long Island. The Group’s physicians are subspecialists in sports medicine, knee, foot and ankle, shoulder, joint replacement, spine and hand practices.
Sunrise Highway, Merrick, NY
The property is highly accessible along Sunrise Highway, as well as Southern State Parkway, Northern State Parkway and the Long Island Expressway. It is situated within a well-developed transportation network that includes the Long Island Rail Road and Nassau Inter-County Express bus system.
INVESTMENT HIGHLIGHTS
- $3.2 Million Capital Investment: The property was completely renovated for the tenant in 2009 with a new roof, building mechanical systems, walls, bathrooms, floors and parking lot.
- Stabilized Long-Term Cash Flow: The building is 100 percent leased to Orlin & Cohen Orthopedic Group through 2029, with a 5-year option and 3% yearly increases.
- Central Location to Area Hospitals: The property is strategically located near nine area hospitals, including South Nassau Communities Hospital, a 435-bed facility, Mercy Medical Center, a 375-bed facility, and Winthrop University Hospital, a 591-bed facility.
- Demographics: The New York Metropolitan Statistical Area, encompassing New York City, Long Island, Northern New Jersey, Westchester County and Southern Connecticut, is the economic engine of the Northeast. Long Island has a high population density and strong demographics. Orlin & Cohen is well positioned to support the residents’ medical needs.
PROPERTY DETAILS
- STRUCTURE: Absolute net lease – expires in 2029
- RENT BUMPS: 3% annual rent increases
- LEASE: 15-year lease, with one 5-year renewal option
Investing in Medical Real Estate
BY THE NUMBERS: The Increasing Demand for Medical Real Estate
- Approximately 12 million people have obtained coverage under the Affordable Care Act, generating additional need for medical real estate.
- The aging of America has created a demand for more healthcare real estate.
- Healthcare expenditures are expected to increase to $4.8 trillion by 2021, up over 58% from 2012.
- Healthcare represents 18 percent of the U.S. gross domestic product, and is expected to increase to nearly 20 percent of GDP by 2021.
- Between 2008 and 2018, healthcare job growth is projected to increase by nearly 29 percent.
- Advances in technology and research increase life expectancies, producing additional interest in healthcare assets.
ORLIN & COHEN ORTHOPEDIC GROUP
Orlin & Cohen Orthopedic Group is the largest private orthopedic practice in New York State. The practice operates orthopedic, pain management, diagnostic physical therapy and occupational therapy in seven facilities throughout Long Island. The Group’s physicians are subspecialists in sports medicine, knee, foot and ankle, shoulder, joint replacement, spine and hand practices. The team of orthopedic specialists features board-certified, fellowship-trained physicians from some of America’s most prestigious medical programs, including Cornell, Johns Hopkins and Columbia Presbyterian. The physicians also hold leadership positions with South Nassau Communities Hospital, South Shore Ambulatory Surgery Center and North Shore-LIJ Health System.
ABOUT CAPITAL SQUARE
Capital Square 1031, LLC specializes in the creation and management of real estate investment programs for Section 1031 exchange investors and other investors using the Delaware Statutory Trust structure. Louis J. Rogers, founder and chief executive offi cer of Capital Square, has been involved in the creation and management of more than 100 investment offerings totaling over $3 billion, including DSTs, tenant-in-common offerings, numerous real estate funds, and multiple publicly registered non-traded real estate investment trusts.