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Office Medical

Warwick Business Court

1135-1151 Warwick Way, Racine, WI 53406

Listing Price: $3,650,000

Cap Rate
8.07%
Gross SF
24,500
Rentable SF
24,500
Price/Gross SF
$148.98
Occupancy
89.1%
Year Built
2000
Lot Size
2.31 acres

Investment Overview

Marcus & Millichap is pleased to present the fee simple ownership of the Warwick Business Court located at 1135-1151 Warwick Way, Racine, Wisconsin. This property consists of five buildings totaling 24,522 rentable square feet and has a current occupancy level of 89%. The property includes six total tenants, the three anchor tenants (Concentra, DaVita Dialysis, and Aurora Health Care) occupy 60% of the rentable square footage. All three of these medical providers are credit-rated tenants and have corporate guarantors implemented on their respective leases. Concentra and Aurora Health Care have occupied their suites since the building’s original construction in 2000. DaVita Dialysis has remained in their suite since 2007 and executed a 12-year renewal in the summer of 2019. This level of commitment from each medical provider shows their operational success within the Warwick Business Court. Additionally, LifeStance Health recently signed a 6-year lease that commenced on April 1, 2020. The current owner invested $70,000 into their buildout and has spent nearly $30,000 in capex work over the last three years of ownership. The capex work includes $8,800 preventative maintenance to the roofs for all five buildings, $5,100 for a new 80 gallon heat/pump water heater for Aurora’s suite, and $7,550 for both a new high efficiency furnace and new Carrier AC unit for Concentra’s suite. Please see slide 9 for specifics of each improvement made over the last thirty-six months. This is a unique investment opportunity for a prospective investor to enter the deal at a 7.47% capitalization rate and have the ability to achieve over a 10.50% cash-on-cash yield once the remaining 11% of vacant space is leased to a prospective office or medical tenant. The subject property here has been a highly stable and reliable cash-flowing asset for over 20 years. The staggered lease expiration dates will also mitigate substantial rollover risk in the future. The property is strategically positioned off the intersection of Washington Ave and Green Bay Road; a heavily trafficked thoroughfare that has more than 80,000 vehicles per day and is less than 5 miles from interstate I-94 which is the major North/South highway from Chicago to Milwaukee. Mount Pleasant is situated directly between two major metro areas, Chicago and Milwaukee. Racine county boasts more than 6,000 businesses and more than 350 manufacturing companies.

Investment Highlights

  • 60% of the RBA is leased to credit-rated healthcare tenants – Concentra, DaVita Dialysis, and Aurora Health Care
  • Three out of the six tenants have occupied their respective suites since the original construction in 2000
  • Five-miles from I-94 which is the Main North/South Artery from Chicago to Milwaukee

Exclusively Listed By

Broker of Record

  • Todd Lindblom

    First Vice President/Regional Manager

    (262) 364-1900

    License(s) WI: 56163-90

    Wisconsin

Financing By

Office Medical

Warwick Business Court

Listing Price: $3,650,000

Cap Rate
8.07%
Gross SF
24,500
Rentable SF
24,500
Price/Gross SF
$148.98
Occupancy
89.1%
Year Built
2000
Lot Size
2.31 acres

Investment Highlights

  • 60% of the RBA is leased to credit-rated healthcare tenants – Concentra, DaVita Dialysis, and Aurora Health Care
  • Three out of the six tenants have occupied their respective suites since the original construction in 2000
  • Five-miles from I-94 which is the Main North/South Artery from Chicago to Milwaukee

Investment Overview

Marcus & Millichap is pleased to present the fee simple ownership of the Warwick Business Court located at 1135-1151 Warwick Way, Racine, Wisconsin. This property consists of five buildings totaling 24,522 rentable square feet and has a current occupancy level of 89%. The property includes six total tenants, the three anchor tenants (Concentra, DaVita Dialysis, and Aurora Health Care) occupy 60% of the rentable square footage. All three of these medical providers are credit-rated tenants and have corporate guarantors implemented on their respective leases. Concentra and Aurora Health Care have occupied their suites since the building’s original construction in 2000. DaVita Dialysis has remained in their suite since 2007 and executed a 12-year renewal in the summer of 2019. This level of commitment from each medical provider shows their operational success within the Warwick Business Court. Additionally, LifeStance Health recently signed a 6-year lease that commenced on April 1, 2020. The current owner invested $70,000 into their buildout and has spent nearly $30,000 in capex work over the last three years of ownership. The capex work includes $8,800 preventative maintenance to the roofs for all five buildings, $5,100 for a new 80 gallon heat/pump water heater for Aurora’s suite, and $7,550 for both a new high efficiency furnace and new Carrier AC unit for Concentra’s suite. Please see slide 9 for specifics of each improvement made over the last thirty-six months. This is a unique investment opportunity for a prospective investor to enter the deal at a 7.47% capitalization rate and have the ability to achieve over a 10.50% cash-on-cash yield once the remaining 11% of vacant space is leased to a prospective office or medical tenant. The subject property here has been a highly stable and reliable cash-flowing asset for over 20 years. The staggered lease expiration dates will also mitigate substantial rollover risk in the future. The property is strategically positioned off the intersection of Washington Ave and Green Bay Road; a heavily trafficked thoroughfare that has more than 80,000 vehicles per day and is less than 5 miles from interstate I-94 which is the major North/South highway from Chicago to Milwaukee. Mount Pleasant is situated directly between two major metro areas, Chicago and Milwaukee. Racine county boasts more than 6,000 businesses and more than 350 manufacturing companies.

Exclusively Listed By

Broker of Record

  • Todd Lindblom

    First Vice President/Regional Manager

    (262) 364-1900

    License(s): WI: 56163-90

    Wisconsin

Financing By

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