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Office Medical

Sunrise Medical Group - Advanced Neuroscience Institute (In-House MRI & Physical Therapy Services)

3540 N Pine Island Rd, Sunrise, FL 33351

Listing Price: $8,745,000

Cap Rate
6.50%
Gross SF
16,797
Rentable SF
16,797
Price/Gross SF
$520.63
Occupancy
100.0%
Year Built
1995
Lot Size
2.65 acres

Investment Overview

Marcus & Millichap is pleased to present the fee simple ownership of 3540 North Pine Island Road in Sunrise, Florida. The subject property is 100 percent leased to Steward Medical Group – Advanced Neuroscience Institute. Steward Healthcare System is headquartered out of Dallas, Texas and is the largest physician-owned healthcare network which includes over 5,500 providers, 43,000 healthcare professionals, and cares for more than 12.3 million patients per year. It is a global network of hospitals, urgent care centers, skilled nursing facilities, behavioral health services, and multi-specialty physician practices. In August of 2021, it was announced that Steward Health Care, “successfully completed the acquisition of five hospitals in South Florida from Tenet Healthcare Corporation (NYSE: THC) including North Shore Medical Center, Coral Gables Hospital, Hialeah Hospital, and Palmetto General Hospital in Miami Dade County, and Florida Medical Center in Broward County. Under the terms of the agreement, Steward will purchase these five hospitals and their associated physician practices from Tenet for approximately $1.1 billion.” Steward Advanced Neuroscience Institute is a neurological and ancillary services organization, led by a team of neurologists, interventional neurologists, neurosurgeons, and therapists, offering advanced neurologic, diagnostic, and therapeutic care. The practices offer outpatient services in Broward County. The team of experienced physicians at SMG offer a range of neurological services and physical therapy. Treating conditions requiring specialized care, such as movement disorders, neuromuscular diseases, nervous system infections, behavioral neurology, and neuropsychology. The subject property is split up into two suites, one being suite 100 which is dedicated to clinic space (15,028 SF) and suite 101 which houses the MRI machine (1,773 SF). Steward Medical Group is operating under an “Absolute Net Lease” structure which extinguishes ALL landlord responsibilities. This desirable lease structure translates into the property being extremely passive for a prospective investor since it will shield the lessor from a future rise in annual operating expenses that would adversely impact their cash flow. Additionally, this lease features rare annual rent increases of the greater of 3 percent or the CPI increase which provides an excellent hedge against inflationary pressure. In light of current events, this clause remains ever so important as the United States set a 40-year record in June of 2021 to June 2022 when the inflation rate hit 9.1 percent. Ownership will be paying an estimated $200,000 for a GAF roofing system membrane overlay with a 15-year transferable warranty. This work will be completed in the next couple weeks. The property benefits from excellent visibility and accessibility located near the corner of North Pine Island Road (35,000 VPD) and Oakland Park Boulevard (40,000 VPD). Sunrise is situated in a South Florida submarket just ten miles west of Fort Lauderdale, and thirty miles north of downtown Miami. Within the last year, two new hospitals have been approved for construction in the city of Sunrise in order to serve the community’s patient base. Broward Health’s board approved in January of 2021 to move forward with the construction of a brand new $50MM hospital in Sunrise. This hospital is going to consist of 150 beds and Broward Health will be partnering up with Hollywood-based Memorial Health. Additionally, Baptist Health South Florida will be constructing a 100-bed hospital near the corner of W Oakland Park Blvd & the Sawgrass Expressway in Sunrise. The population within ten miles is over 1,140,000 million earning an average household income of $87,000. Thanks to year-round warm weather, favorable tax laws, and growing cities; South Florida has been experiencing significant growth and the state is projected to grow by 32 percent by 2040.

Investment Highlights

  • 10 Years of Lease Term Remaining – Absolute Net Lease Structure (Zero Landlord Responsibilities to Manage & Maintain the Subject Property)
  • Steward Health Care System is the largest physician-owned healthcare network in the US (5,500 providers, 43,000 healthcare professionals, sees over 12.3 million patients per year) – Doubled its footpr
  • In-house MRI machine – heavy medical equipment typically means the tenant is stickier since the cost of relocation is expensive

Exclusively Listed By

Broker of Record

  • Ryan Nee

    Senior Vice President/ Division Manager

    (954) 245-3400

    License(s) FL: BK3154667

    Florida

Financing By

Office Medical

Sunrise Medical Group - Advanced Neuroscience Institute (In-House MRI & Physical Therapy Services)

Listing Price: $8,745,000

Cap Rate
6.50%
Gross SF
16,797
Rentable SF
16,797
Price/Gross SF
$520.63
Occupancy
100.0%
Year Built
1995
Lot Size
2.65 acres

Investment Highlights

  • 10 Years of Lease Term Remaining – Absolute Net Lease Structure (Zero Landlord Responsibilities to Manage & Maintain the Subject Property)
  • Steward Health Care System is the largest physician-owned healthcare network in the US (5,500 providers, 43,000 healthcare professionals, sees over 12.3 million patients per year) – Doubled its footpr
  • In-house MRI machine – heavy medical equipment typically means the tenant is stickier since the cost of relocation is expensive

Investment Overview

Marcus & Millichap is pleased to present the fee simple ownership of 3540 North Pine Island Road in Sunrise, Florida. The subject property is 100 percent leased to Steward Medical Group – Advanced Neuroscience Institute. Steward Healthcare System is headquartered out of Dallas, Texas and is the largest physician-owned healthcare network which includes over 5,500 providers, 43,000 healthcare professionals, and cares for more than 12.3 million patients per year. It is a global network of hospitals, urgent care centers, skilled nursing facilities, behavioral health services, and multi-specialty physician practices. In August of 2021, it was announced that Steward Health Care, “successfully completed the acquisition of five hospitals in South Florida from Tenet Healthcare Corporation (NYSE: THC) including North Shore Medical Center, Coral Gables Hospital, Hialeah Hospital, and Palmetto General Hospital in Miami Dade County, and Florida Medical Center in Broward County. Under the terms of the agreement, Steward will purchase these five hospitals and their associated physician practices from Tenet for approximately $1.1 billion.” Steward Advanced Neuroscience Institute is a neurological and ancillary services organization, led by a team of neurologists, interventional neurologists, neurosurgeons, and therapists, offering advanced neurologic, diagnostic, and therapeutic care. The practices offer outpatient services in Broward County. The team of experienced physicians at SMG offer a range of neurological services and physical therapy. Treating conditions requiring specialized care, such as movement disorders, neuromuscular diseases, nervous system infections, behavioral neurology, and neuropsychology. The subject property is split up into two suites, one being suite 100 which is dedicated to clinic space (15,028 SF) and suite 101 which houses the MRI machine (1,773 SF). Steward Medical Group is operating under an “Absolute Net Lease” structure which extinguishes ALL landlord responsibilities. This desirable lease structure translates into the property being extremely passive for a prospective investor since it will shield the lessor from a future rise in annual operating expenses that would adversely impact their cash flow. Additionally, this lease features rare annual rent increases of the greater of 3 percent or the CPI increase which provides an excellent hedge against inflationary pressure. In light of current events, this clause remains ever so important as the United States set a 40-year record in June of 2021 to June 2022 when the inflation rate hit 9.1 percent. Ownership will be paying an estimated $200,000 for a GAF roofing system membrane overlay with a 15-year transferable warranty. This work will be completed in the next couple weeks. The property benefits from excellent visibility and accessibility located near the corner of North Pine Island Road (35,000 VPD) and Oakland Park Boulevard (40,000 VPD). Sunrise is situated in a South Florida submarket just ten miles west of Fort Lauderdale, and thirty miles north of downtown Miami. Within the last year, two new hospitals have been approved for construction in the city of Sunrise in order to serve the community’s patient base. Broward Health’s board approved in January of 2021 to move forward with the construction of a brand new $50MM hospital in Sunrise. This hospital is going to consist of 150 beds and Broward Health will be partnering up with Hollywood-based Memorial Health. Additionally, Baptist Health South Florida will be constructing a 100-bed hospital near the corner of W Oakland Park Blvd & the Sawgrass Expressway in Sunrise. The population within ten miles is over 1,140,000 million earning an average household income of $87,000. Thanks to year-round warm weather, favorable tax laws, and growing cities; South Florida has been experiencing significant growth and the state is projected to grow by 32 percent by 2040.

Exclusively Listed By

Broker of Record

  • Ryan Nee

    Senior Vice President/ Division Manager

    (954) 245-3400

    License(s): FL: BK3154667

    Florida

Financing By

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