Investment Overview

Marcus & Millichap has been retained as exclusive advisor to market for sale the Oak Street Health building located in Dayton, Ohio. The subject property is a net-leased medical building situated on 1.36 acres along Wayne Avenue, a major thoroughfare that leads directly into downtown Dayton from interstate 675. The property’s location is considered part of the central business district of Dayton and is in close proximity to two large hospitals; the Miami Valley Hospital and Dayton Children’s Hospital. Humana Health renovated the property in 2019 and signed a brand-new, 10-year lease in February of 2020. The structure of the lease is a net-leased basis with annual 2.0% rental escalators throughout the firm term of lease and during each of their two, five-year renewal options. Humana Health (NYSE: HUM) is a publicly traded company and as of 2019, had over 20 million members in the United States and reported revenue in excess of $64 billion and had over 45,000 employees. In 2019, Human Health bought a $100 million stake in Heal, a fast-growing start up company that offers primary care house calls on-demand to seniors on its Medicare Advantage Plans. Humana Health currently has an investment-grade credit rating as BBB+ (S&P) and Baa3 (Moody’s). The subject property offers a great opportunity for any investor looking for a long-term net-leased investment with an investment-grade tenant and offers minimal landlord responsibilities.