Investment Overview

Marcus & Millichap is pleased to present the single-tenant O’Fallon Surgical Center located at 741 Insight Ave. in O’Fallon, Illinois. The total rentable building area is 8,540 square feet. The property was constructed in 2020. The tenant, O’Fallon Surgery Center, is prepared to execute a 12-year lease at close of escrow. The Absolute Net lease features two percent annual rental increases through the base term and four five-year option periods. O’Fallon Surgical Center (OSC) is a multi-specialty ambulatory surgery center (ASC) and is one of the busiest ASC facilities in Illinois. OSC specializes in neuro, orthopedic, plastic, general, bariatric, ophthalmic, gynecologic, podiatric, and gastrointestinal surgeries, as well as pain management. With state-of-the-art equipment and the presence of certified nurses and anesthesiologists, the facility meets the highest standards of care. There is a Certificate of Need (CON) Attached to the property. This asset is strategically located across from HSHS St. Elizabeth’s Hospital (144 Beds) The hospital recently opened in 2017 and is the most technologically advanced medical center in the region. The property is also situated two miles from Memorial Hospital East (97 Beds). O’Fallon Surgery Center is located just off of heavily traveled US-Hwy 50 and in close proximity to Interstate-64. The property is situated in a core retail market. Nearby national retail includes Walmart Supercenter, Sam’s Club, Menards, Target, ALDI, At Home, along with numerous fast-casual and quick service restaurants. O’Fallon Surgery Center is situated 17 miles from downtown St. Louis and features excellent demographics; there are over 90,000 residents with an average household income exceeding $103,000 within five miles. This medical office offers an incoming investor a stable investment opportunity. The O’Fallon Surgery Center is executing a long-term lease showing their commitment to this location. An investor will also have an increasing NOI as a result of the two percent annual rental increases in place for the duration of the firm lease term.