Indianapolis Medical Office DST
2040 Shadeland Avenue, Indianapolis, Indiana 46219
Beneficial Interests: $13,897,674
Offering Price: $13,897,674
- Offering Reserve :$325,000
- Current Cash Flow : 5.15%
- Minimum Investment[1031]: $100,000
Indianapolis Medical Office DST, a newly formed Delaware statutory trust (DST), also known as the Trust, and an affiliate of Inland Private Capital Corporation (IPCC), is hereby offering (the Offering) to sell to certain qualified,accredited investors (Investors), pursuant to this Private Placement Memorandum (the Memorandum), 100% of the beneficial interests (Interests) in the Trust.
Community Health Property
The three-story, single-tenant Property located at 2040 Shadeland Avenue provides 42,187 square feet of medical office space and 194 parking spaces. Construction of the Property began in 2004, with completion and full occupancy by Community Health in 2009.
INVESTMENT HIGHLIGHTS
An investment in the Indianapolis Medical Office DST may offer the following benefits:
• High-Quality Property in Critical Market – Constructed in 2004 and fully completed in 2009, the Property houses medical, clinical, imaging and administrative offices for Community Health. The Property is located less than two miles from Community Hospital East and with seven other Community Health Network offsite locations in a two-mile radius, in the heart of a critical market for the network.
• Healthcare Real Estate Continues to Perform – Demand for medical office space is expected to remain strong, as healthcare spending rises and demand from an aging population grows. The baby boomer generation is moving closer to their golden years, which increases the need for medical services across the country, and causes healthcare providers to move toward patient-centered, retail-like spaces and settings. Medical office vacancy tightened to the lowest levels since 2007 to 8.6% in the second quarter of 2016. Average asking rents for medical office buildings remain at $22.61 through the end of the second quarter of 2016, which is a 0.2% increase over the same time last year.7
• Strong Tenant – Ranked among the nation’s most integrated healthcare systems, Indianapolis-based Community Health Network is Central Indiana’s leader in providing convenient access to exceptional healthcare services. As a non-profit health system with more than 200 sites of care and affiliates throughout Central Indiana, Community Health’s full continuum of care integrates hundreds of physicians,specialty and acute care hospitals, surgery centers, home care services, MedChecks, behavioral health and employer health services.
• Long-term Lease with Annual Rent Growth – The Lease has a current term ending August 31, 2028,with two five-year renewal options. The Lease provides for annual increases in base rent. See “Summary of the Lease” in the Memorandum.
• Absence of Leverage – The Property is not encumbered by permanent financing, which will allow the Trust the flexibility to hold or sell the Property without any lender restrictions and sell at a time which maximizes value.
THE FINANCING
The Property is being offered to Investors without the encumbrance of permanent debt.
THE OFFERING
The Offering is designed for accredited investors seeking to participate in a tax-deferred exchange as well as accredited investors seeking a quality multiple owner real estate investment. Only accredited investors may purchase Interests in this Offering. See “Summary of the Offering – Interest Offered” and “The Offering.”
PROPERTY OVERVIEW
Community Health Property
The three-story, single-tenant Property located at 2040 Shadeland Avenue provides 42,187 square feet of medical office space and 194 parking spaces. Construction of the Property began in 2004, with completion and full occupancy by Community Health in 2009. The building underwent over $4 million in both base building and tenant improvements to meet Community Health’s operational requirements. With brick and concrete exterior façade, the Property has brand new common corridors, tenant space, refurbished elevators and elevator cabs,as well as completely renovated HVAC systems.
