Investment Overview

Marcus & Millichap is pleased to present the opportunity to purchase the fee simple interest in a surgery center-anchored medical building located in Merrillville, IN, a growing market in northwest Indiana within the Chicago MSA. The property is 16,400 square feet with each tenant occupying exactly 50% of the gross leasable area. The location is highly strategic for both tenants, given that it is across the street from Methodist Hospital Southlake, a 334-bed healthcare facility. The vacancy rate amongst competing properties within this submarket is quite low, at about 5%. Midwest Operating Engineers Health Center has just under five years of lease term remaining, and they are paying only $9.25 per square foot, well below the average rents within this medical corridor. Northwest Regional Surgery Center just signed their first lease renewal, extending for five additional years at $22 per square foot, with 2.5% annual rent increases, demonstrating their commitment to the location. They are also in the process of completing several improvements to their buildout, increasing the probability of their longevity. Both tenants operate on landlord-favorable NNN leases and fully reimburse ownership for all operating expenses, including a management fee, making this property ideal for investors who want limited responsibilities in operating their real estate. This is an opportunity to purchase a well-located medical office building at an attractive basis and going in yield, with built-in rent increases.