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Office Medical

Surgery Center-Anchored MOB | Adjacent to 334-Bed Hospital

8900 Broadway, Merrillville, IN 46410

Listing Price: $3,677,000

Cap Rate
7.00%
Gross SF
16,400
Rentable SF
16,400
Price/Gross SF
$224.21
Occupancy
100.0%
Year Built
1995
Lot Size
1.46 acres

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.

Investment Highlights

  • Two-Tenant Medical Building Across the Street From 334-Bed Methodist Hospital Southlake in Merrillville, IN
  • Just 10 Miles East of the Indiana State Line in the Chicago MSA
  • Both Tenants Operate on Strong NNN Leases and Reimburse for All Operating Expenses, Including a Management Fee
  • Northwest Regional Surgery Center Just Extended for Five Years With 2.5% Annual Increases
  • Weighted Average Lease Term of 4.85 Years
  • Midwest Operating Engineers Health Center Is Paying $9.25/SF, Well Below the Submarket's Average Rents
  • Tight Medical Office Submarket With Approximately 5 Percent Vacancy Overall in the 18 Buildings located Within a Half-Mile of the Subject Property
  • High Traffic-Count Site – Particularly for Medical – Over 23,000 Vehicles per Day

Exclusively Listed By

Broker of Record

  • Josh Caruana

    First Vice President/District Manager

    (317) 218-5300

    License(s) IN: RB14034355

    Indiana

Office Medical

Surgery Center-Anchored MOB | Adjacent to 334-Bed Hospital

Listing Price: $3,677,000

Cap Rate
7.00%
Gross SF
16,400
Rentable SF
16,400
Price/Gross SF
$224.21
Occupancy
100.0%
Year Built
1995
Lot Size
1.46 acres

Investment Highlights

  • Two-Tenant Medical Building Across the Street From 334-Bed Methodist Hospital Southlake in Merrillville, IN
  • Just 10 Miles East of the Indiana State Line in the Chicago MSA
  • Both Tenants Operate on Strong NNN Leases and Reimburse for All Operating Expenses, Including a Management Fee
  • Northwest Regional Surgery Center Just Extended for Five Years With 2.5% Annual Increases
  • Weighted Average Lease Term of 4.85 Years
  • Midwest Operating Engineers Health Center Is Paying $9.25/SF, Well Below the Submarket's Average Rents
  • Tight Medical Office Submarket With Approximately 5 Percent Vacancy Overall in the 18 Buildings located Within a Half-Mile of the Subject Property
  • High Traffic-Count Site – Particularly for Medical – Over 23,000 Vehicles per Day

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.

Exclusively Listed By

Broker of Record

  • Josh Caruana

    First Vice President/District Manager

    (317) 218-5300

    License(s): IN: RB14034355

    Indiana

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