Investment Overview

Marcus & Millichap is pleased to present the fee-simple ownership interest in 1800 South Douglas Boulevard, Oklahoma City, Oklahoma. This exquisite medical office property was delivered in 2004 and offers 20,756 square feet of premium medical office space. Current ownership has invested greatly into the site within the past year with over $445,000 of capital improvements. Renovations to the site included a complete roof replacement, exterior repairs to the fascia, complete exterior and interior paint, removal and replacement of all floor coverings, interior light fixture upgrades, HVAC repairs and upgrades, exterior landscaping, and a pylon sign with a programmable message board. The property is 100 percent stabilized and occupied by AllianceHealth Medical Group Family Medicine on Douglas.

AllianceHealth Medical Group operates the site under a corporate-guaranteed triple-net lease structure with six-years of lease term remaining. The landlord is only responsible for fire and casualty insurance, with all other expenses passed through to the tenant. The net lease structure minimizes a landlords exposure to expenses, and the property recently saw significant capital improvements making this asset extremely desirable for passive ownership. AllianceHealth Medical Group has been owned by Community Health Systems, Inc. (CHS) since 2014. In December of 2020, SSM Health Oklahoma (SSM Health) reached an agreement for SSM Health to assume operations of AllianceHealth Midwest. SSM Health is a Catholic, not-for-profit health system based in St. Louis, MO that provides health care services in Illinois, Missouri, Oklahoma, and Wisconsin. SSM Health has a Moodys Credit Rating of A1. The transition is slated for the first half of 2021 where SSM Health will become the guarantor on the lease.