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Office Medical

RAYUS Radiology Anchored Portfolio- Long Term NNN Leases

809 Co Rd 466, Lady Lake, FL 32159

Listing Price: Request For Offer

Gross SF
7,619
Rentable SF
7,619
Occupancy
100.0%
Year Built
2015
Lot Size
0.17 acres

Investment Overview

Marcus & Millichap is pleased to present a three-property RAYUS Radiology anchored portfolio located in the Orlando, Florida MSA. More specifically, the addresses are 9350 Turkey Lake Road, Unit #2, Orlando, FL-1640 North Maitland Avenue, Maitland, FL- 809 County Road 466, C-Unit 401, Lady Lake, FL. The three locations were formerly operated by Sand Lake Imaging which was a leading radiology provider in Central Florida prior to being acquired by RAYUS Radiology in June of 2021. RAYUS Radiology is a leading national provider of advanced diagnostic and interventional radiology that has a footprint in all 50 states, over 2,000 employees which includes more than 400 radiologists, 2.5 billion images performed across modalities, and presently involved with 150+ clinical trials. RAYUS Radiology is backed by Wellspring Capital Management which is a private equity firm headquartered in New York City and oversees over $2.2 billion worth of assets. T he Orlando and Lady Lake locations are condominium units while the Maitland property would be categorized as pure fee simple. In January of 2017 10-year leases were signed by Sand Lake Imaging which means the original primary expiration date was December 31, 2026 for all three locations. The formal assignment of the leases to RAYUS Radiology occurred in June of 2021 shortly after the acquisition was consummated. Ownership and RAYUS Radiology just finalized an early 5-year extension for all three locations which now takes the lease expiration date to December 31, 2031. In all three locations, there is extensive medical build-out and infrastructure in-place in order to provide high-quality imaging services. The state-of-the-art equipment includes MRI, PET/CT scan, X-Ray and Digital Mammography machinery. High-powered MRI and PET/Scan machines can cost anywhere from $1-$3 million each which underscores the reason why it is cost prohibitive for radiology tenants to consider relocating services. In addition to the tenant being unable to replicate this infrastructure at an economically feasible figure, the rental rates for each location are below-market when compared to comparable medical office space that offers this type of medical sub-specialty. The Orlando & Lady Lake net rental rates are $19/$20 per SF while the Maitland location is in the mid-$30’s per SF. In the very unlikely scenario that there is tenant rollover in the future, prospective investors can leverage the positive location attributes of each site and backfill the spaces at a replaceable rental amount. All lease structures are true “NNN” which mitigates a future landlord’s responsibilities to close to zero and there are 2.5% annual rental escalators throughout the primary term of the lease and two 5-year option periods if exercised by RAYUS Radiology. The desirable net lease structure protects a prospective investor’s yearly cash flow if there is a sudden rise in operating expenses in the future and the annual rental escalations provides a hedge against inflationary pressure. T he Orlando, FL MSA population is just over 2 million people and it is one of the fastest growing metros in the entire United States. In the last ten years, Orlando’s population has climbed over 22% and is home to nearly a half a million more people today when compared to 2010. The Orlando metro is expected to add 218,000 more people in the next five years which will equate to roughly 87,700 additional households. According to our company’s investment forecast for the Orlando Metro Area, “Positive net absorption returned to Orlando in the second half of last year, providing an optimistic outlook for office fundamentals entering 2022. Although vacancy increased on a year-over-year basis in 2021, the rate still remains 350 basis points below the national average. Further brightening the metro’s outlook, the area’s affordability and growing talent pool are enticing business relocations and expansions. Disney, InnovaCare Health and Checkr represent notable employers that recently announced plans to expand their local office footprints. Robust population and employment growth will bolster tenant demand for both traditional and medical office spaces this year, likely resulting in an uptick in leasing activity. Furthermore, developers are moderating the amount of supply entering the market, with only 450,000 square feet of space scheduled to deliver in 2022. This combination will allow for net absorption to outpace supply additions. As a result, vacancy will fall 150 basis points below its long-term average in the coming year. Robust population growth in Orlando will bolster the need for health services, likely drawing additional investor interest to medical office assets over the coming year.”

Investment Highlights

  • The Orlando, FL MSA population is just over 2 million people, and it is one of the fastest growing metros in the entire United States.
  • 40-year history as a high-quality radiology provider
  • 2.5 billion images performed across modalities

Exclusively Listed By

Broker of Record

  • Ryan Nee

    Senior Vice President/ Division Manager

    (954) 245-3400

    License(s) FL: BK3154667

    Florida

Office Medical

RAYUS Radiology Anchored Portfolio- Long Term NNN Leases

Listing Price: Request For Offer

Gross SF
7,619
Rentable SF
7,619
Occupancy
100.0%
Year Built
2015
Lot Size
0.17 acres

Investment Highlights

  • The Orlando, FL MSA population is just over 2 million people, and it is one of the fastest growing metros in the entire United States.
  • 40-year history as a high-quality radiology provider
  • 2.5 billion images performed across modalities

Investment Overview

Marcus & Millichap is pleased to present a three-property RAYUS Radiology anchored portfolio located in the Orlando, Florida MSA. More specifically, the addresses are 9350 Turkey Lake Road, Unit #2, Orlando, FL-1640 North Maitland Avenue, Maitland, FL- 809 County Road 466, C-Unit 401, Lady Lake, FL. The three locations were formerly operated by Sand Lake Imaging which was a leading radiology provider in Central Florida prior to being acquired by RAYUS Radiology in June of 2021. RAYUS Radiology is a leading national provider of advanced diagnostic and interventional radiology that has a footprint in all 50 states, over 2,000 employees which includes more than 400 radiologists, 2.5 billion images performed across modalities, and presently involved with 150+ clinical trials. RAYUS Radiology is backed by Wellspring Capital Management which is a private equity firm headquartered in New York City and oversees over $2.2 billion worth of assets. T he Orlando and Lady Lake locations are condominium units while the Maitland property would be categorized as pure fee simple. In January of 2017 10-year leases were signed by Sand Lake Imaging which means the original primary expiration date was December 31, 2026 for all three locations. The formal assignment of the leases to RAYUS Radiology occurred in June of 2021 shortly after the acquisition was consummated. Ownership and RAYUS Radiology just finalized an early 5-year extension for all three locations which now takes the lease expiration date to December 31, 2031. In all three locations, there is extensive medical build-out and infrastructure in-place in order to provide high-quality imaging services. The state-of-the-art equipment includes MRI, PET/CT scan, X-Ray and Digital Mammography machinery. High-powered MRI and PET/Scan machines can cost anywhere from $1-$3 million each which underscores the reason why it is cost prohibitive for radiology tenants to consider relocating services. In addition to the tenant being unable to replicate this infrastructure at an economically feasible figure, the rental rates for each location are below-market when compared to comparable medical office space that offers this type of medical sub-specialty. The Orlando & Lady Lake net rental rates are $19/$20 per SF while the Maitland location is in the mid-$30’s per SF. In the very unlikely scenario that there is tenant rollover in the future, prospective investors can leverage the positive location attributes of each site and backfill the spaces at a replaceable rental amount. All lease structures are true “NNN” which mitigates a future landlord’s responsibilities to close to zero and there are 2.5% annual rental escalators throughout the primary term of the lease and two 5-year option periods if exercised by RAYUS Radiology. The desirable net lease structure protects a prospective investor’s yearly cash flow if there is a sudden rise in operating expenses in the future and the annual rental escalations provides a hedge against inflationary pressure. T he Orlando, FL MSA population is just over 2 million people and it is one of the fastest growing metros in the entire United States. In the last ten years, Orlando’s population has climbed over 22% and is home to nearly a half a million more people today when compared to 2010. The Orlando metro is expected to add 218,000 more people in the next five years which will equate to roughly 87,700 additional households. According to our company’s investment forecast for the Orlando Metro Area, “Positive net absorption returned to Orlando in the second half of last year, providing an optimistic outlook for office fundamentals entering 2022. Although vacancy increased on a year-over-year basis in 2021, the rate still remains 350 basis points below the national average. Further brightening the metro’s outlook, the area’s affordability and growing talent pool are enticing business relocations and expansions. Disney, InnovaCare Health and Checkr represent notable employers that recently announced plans to expand their local office footprints. Robust population and employment growth will bolster tenant demand for both traditional and medical office spaces this year, likely resulting in an uptick in leasing activity. Furthermore, developers are moderating the amount of supply entering the market, with only 450,000 square feet of space scheduled to deliver in 2022. This combination will allow for net absorption to outpace supply additions. As a result, vacancy will fall 150 basis points below its long-term average in the coming year. Robust population growth in Orlando will bolster the need for health services, likely drawing additional investor interest to medical office assets over the coming year.”

Exclusively Listed By

Broker of Record

  • Ryan Nee

    Senior Vice President/ Division Manager

    (954) 245-3400

    License(s): FL: BK3154667

    Florida

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