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Single-Tenant Office Medical

Heart Masters

519 N Gun Barrel Ln, Gun Barrel City, TX 75156

Listing Price: $783,520

Cap Rate
7.50%
Tenant Name
Heart Masters
Gross SF
4,897
Guarantor
Private Guarantee
Rentable SF
4,897
Price/Gross SF
$160.00
Lease Type
Triple Net (NNN)
Rent Per Square Feet
$12.00

Investment Overview

Marcus & Millichap is pleased to offer this sale/leaseback opportunity in Gun Barrel City, Texas. The building has 4,897 square feet of rentable space and sits on approximately 0.33 acres of land. It was originally constructed in 1984, but has had all major systems replaced within the past year in preparation for the sale. The tenant is Heart Masters Cardiology - a practice that has served the community since 2000. They have multiple locations throughout the DFW metroplex and have affiliations with multiple hospitals - including the Baylor Scott & White Medical Center in Sunnyvale, TX which they co-own. They will sign a five-year, triple-net lease at closing with two, five-year options and two percent annual rent increases. The lease is being structured to protect both the seller becoming a tenant from paying above-market rent while also allowing the buyer to enjoy excellent returns with limited downside. There is a pain management practice that also utilizes a portion of the space. Their current lease will be converted into a sublease to allow for a single-tenant offering. This will give the incoming investor a greater degree of simplicity while also enjoying the benefits of tenant diversification. Gun Barrel City is part of the Dallas-Fort Worth MSA and enjoys some peripheral benefits from the proximity. It is far enough removed, however, to be quite inconvenient for patients to travel to the population centers to see medical providers. There is also a large enough demand for medical care to attract UT Health, which is expanding their footprint in the market. In short, this offering provides an investor with simple and secure cash flow from a resilient and essential medical tenant. The ownership will be quite passive with the triple-net lease structure, but will also benefit from tenant diversification due to the sublease. The property is being offered at below replacement cost and is located in a market seeing an increase in medical demand while not producing much in terms of competition.

Investment Highlights

  • Medical Tenant - Long-established cardiology practice.
  • Limited Landlord Responsibility - NNN lease to be signed at closing.
  • Extensive Tenant Investment - Roof, HVAC, parking lot, and interior flooring have all been replaced within the last year.
  • Low Cost Per Foot - Asking price is only $160 per foot - well below replacement cost for medical office.

Exclusively Listed By

Single-Tenant Office Medical

Heart Masters

Listing Price: $783,520

Cap Rate
7.50%
Tenant Name
Heart Masters
Gross SF
4,897
Guarantor
Private Guarantee
Rentable SF
4,897
Price/Gross SF
$160.00
Lease Type
Triple Net (NNN)
Rent Per Square Feet
$12.00

Investment Highlights

  • Medical Tenant - Long-established cardiology practice.
  • Limited Landlord Responsibility - NNN lease to be signed at closing.
  • Extensive Tenant Investment - Roof, HVAC, parking lot, and interior flooring have all been replaced within the last year.
  • Low Cost Per Foot - Asking price is only $160 per foot - well below replacement cost for medical office.

Investment Overview

Marcus & Millichap is pleased to offer this sale/leaseback opportunity in Gun Barrel City, Texas. The building has 4,897 square feet of rentable space and sits on approximately 0.33 acres of land. It was originally constructed in 1984, but has had all major systems replaced within the past year in preparation for the sale. The tenant is Heart Masters Cardiology - a practice that has served the community since 2000. They have multiple locations throughout the DFW metroplex and have affiliations with multiple hospitals - including the Baylor Scott & White Medical Center in Sunnyvale, TX which they co-own. They will sign a five-year, triple-net lease at closing with two, five-year options and two percent annual rent increases. The lease is being structured to protect both the seller becoming a tenant from paying above-market rent while also allowing the buyer to enjoy excellent returns with limited downside. There is a pain management practice that also utilizes a portion of the space. Their current lease will be converted into a sublease to allow for a single-tenant offering. This will give the incoming investor a greater degree of simplicity while also enjoying the benefits of tenant diversification. Gun Barrel City is part of the Dallas-Fort Worth MSA and enjoys some peripheral benefits from the proximity. It is far enough removed, however, to be quite inconvenient for patients to travel to the population centers to see medical providers. There is also a large enough demand for medical care to attract UT Health, which is expanding their footprint in the market. In short, this offering provides an investor with simple and secure cash flow from a resilient and essential medical tenant. The ownership will be quite passive with the triple-net lease structure, but will also benefit from tenant diversification due to the sublease. The property is being offered at below replacement cost and is located in a market seeing an increase in medical demand while not producing much in terms of competition.

Exclusively Listed By

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