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Office Medical

New Construction Med-Tail Center

4400 Calumet Ave, Valparaiso, IN 46383

Listing Price: $2,608,000

Cap Rate
6.50%
Gross SF
7,344
Rentable SF
7,344
Price/Gross SF
$355.12
Occupancy
100.0%
Year Built
2020
Lot Size
1.41 acres

Investment Overview

Marcus & Millichap is pleased to present the opportunity to purchase the fee simple interest in this New Construction Med-Tail Center located in Valparaiso, Indiana. The rent roll is highly stabilized, leased to two medical tenants -- Restoration Dental and Retina Associates. The weighted average lease term is over 6.5 years, and both Retina Associates and Restoration Dental have invested significantly in their own buildouts. The leases both feature compelling increase structures, creating a hedge against inflation. The property can be purchased for a 6.5% CAP rate on the first year's net operating income, and because of the rent increases built into the leases, that return will increase to a 6.63% cap rate in the second year of ownership. Valparaiso is located just outside the Chicago MSA. It is home to Valparaiso University (3 miles south of the property), a private research university with about 3,000 students. The vast majority of Valparaiso's student body comes from out of state. Valparaiso as a community enjoys a growing population with above average household incomes, as well as abundant amenities. The city has long been a transportation hub and serves as a vital Midwestern logistics node off of I-80.

Investment Highlights

  • New construction "Med-Tail" Opportunity located in Valparaiso, IN
  • 100% leased to two strong, medical tenants -- a dentist and a multi-unit ophthalmology practice -- operating on NNN leases, reimbursing for their share of operating expenses
  • +6.5 Years of Weighted Average Lease Term (WALT) | Both leases feature annual rent increases, hedging against inflation
  • Offered at $353 per square foot -- below replacement cost in today's inflationary economic environment
  • Both tenants have invested heavily in their buildout | The dentist just expanded their space by 1,193 additional square feet - demonstrating commitment to the location
  • Northwest Health - Porter Hospital, the largest hospital in Porter County (252 beds), is located 4 miles north | Valparaiso University, a research university with 3,000 student is 3 miles south of the property

Exclusively Listed By

Broker of Record

  • Josh Caruana

    First Vice President/District Manager

    (317) 218-5300

    License(s) IN: RB14034355

    Indiana

Financing By

Office Medical

New Construction Med-Tail Center

Listing Price: $2,608,000

Cap Rate
6.50%
Gross SF
7,344
Rentable SF
7,344
Price/Gross SF
$355.12
Occupancy
100.0%
Year Built
2020
Lot Size
1.41 acres

Investment Highlights

  • New construction "Med-Tail" Opportunity located in Valparaiso, IN
  • 100% leased to two strong, medical tenants -- a dentist and a multi-unit ophthalmology practice -- operating on NNN leases, reimbursing for their share of operating expenses
  • +6.5 Years of Weighted Average Lease Term (WALT) | Both leases feature annual rent increases, hedging against inflation
  • Offered at $353 per square foot -- below replacement cost in today's inflationary economic environment
  • Both tenants have invested heavily in their buildout | The dentist just expanded their space by 1,193 additional square feet - demonstrating commitment to the location
  • Northwest Health - Porter Hospital, the largest hospital in Porter County (252 beds), is located 4 miles north | Valparaiso University, a research university with 3,000 student is 3 miles south of the property

Investment Overview

Marcus & Millichap is pleased to present the opportunity to purchase the fee simple interest in this New Construction Med-Tail Center located in Valparaiso, Indiana. The rent roll is highly stabilized, leased to two medical tenants -- Restoration Dental and Retina Associates. The weighted average lease term is over 6.5 years, and both Retina Associates and Restoration Dental have invested significantly in their own buildouts. The leases both feature compelling increase structures, creating a hedge against inflation. The property can be purchased for a 6.5% CAP rate on the first year's net operating income, and because of the rent increases built into the leases, that return will increase to a 6.63% cap rate in the second year of ownership. Valparaiso is located just outside the Chicago MSA. It is home to Valparaiso University (3 miles south of the property), a private research university with about 3,000 students. The vast majority of Valparaiso's student body comes from out of state. Valparaiso as a community enjoys a growing population with above average household incomes, as well as abundant amenities. The city has long been a transportation hub and serves as a vital Midwestern logistics node off of I-80.

Exclusively Listed By

Broker of Record

  • Josh Caruana

    First Vice President/District Manager

    (317) 218-5300

    License(s): IN: RB14034355

    Indiana

Financing By

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