Investment Overview

Marcus & Millichap is pleased to present the fee-simple ownership interest in 11 Medical Center Drive which is located in Brunswick, Maine. This 8,496-square-foot medical office facility was built in 2008 and is leased by two credit-rated tenants who each occupy about 50 percent of the rentable building area. US Healthworks has been in their respective suite since 2009, and has since been acquired by Concentra Urgent Care which is a subsidiary of Select Medical Holdings (NYSE: SEM). Concentra is one of the largest occupational healthcare providers in the US with 11,000 employees, 500 medical centers, and 130 onsite clinics. Concentra signed a 10-year renewal in 2018 which is indicative of their commitment and success at the location. MaineHealth d/b/a Maine Behavioral Health occupies the remaining 50 percent of rentable building area. Maine Behavioral Health is a subsidiary to MaineHealth (“A1 credit” according to Moody’s) which is the largest not-for-profit health system in Maine that includes 12 community hospitals in Maine and New Hampshire, has 22,000 employees, and 1,700 employed and independent physicians. Maine Health has agreed to extend their lease early for five additional years which takes their primary expiration date to December of 2028. Also, a future investor will benefit from a 10 percent increase in base rent come January 1, 2024 for Maine Health’s suite. In addition to having leases guaranteed by two credit-rated tenants, prospective investors can also benefit from the desirable “Triple-Net” lease structure that applies to both providers. This passive lease structure is preferred by investors because all operating expenses will be reimbursable by the tenants’ and the investor does not need to be concerned about a future rise in operating expenses that could reduce their annual cash flow. Although common area maintenance, insurance, and real estate taxes must be administered by the landlord, these are all pass-through expenses to the tenants. The property boasts strategic positioning along major thoroughfare Bath Road seeing over 11,000 vehicles per day and benefits from immediate access to US-Hwy 1 (33,772 vehicles per day). The subject property is shadow anchored by Mid Coast Hospital which is affiliated with MaineHealth. Mid Coast Hospital is a 93-bed full-service hospital and has a great deal of synergy with this location because many of the patients come from the full-service hospital itself. Additionally, less than one-mile down Bath Road national retailers include Walmart, Lowes, TJ Max, and Staples.