774 Christiana Rd, Newark, DE 19713 For Sale

ESTABLISHED NECESSITY BASED BUSINESS
Delaware Outpatient Center for Surgery “DOCS” is a multi-specialty, state-of-the-art facility that has been successfully operating for 30 years and features more than 50 board-certified physicians dedicated to providing patients with the absolute best that medicine has to offer and sets new standards of excellence in healthcare. DOCS is part of the Surgery Partners network of surgery facilities, which features over 4,600 affiliated physicians serving more than 600,000 patients annually at more than 200 facilities nationwide.

NEW 10 YEAR LEASE EXTENSION – ANNUAL 3% RENTAL INCREASES
DOCS is the second-largest tenant within the Neuroscience & Surgery Institute, an 80,000 SF, 100% occupied, 6.7-acre medical campus with 12 medical tenants and hundreds of dedicated parking spaces. DOCS recently agreed to extend its NNN lease for an additional ten years of firm term, while maintaining two 5-year extension options thereafter. The lease features annual CPI-based rental increases capped at 3%, offering predictable rent growth within a passive ownership structure.

PUBLICLY TRADED PARENT COMPANY
The subject property lease is corporately guaranteed by Minimally Invasive Surgical and Neuroscience Center, LLC, a majority-owned subsidiary of Surgery Partners, Inc. (NASDAQ: SGRY), a publicly traded operator of surgical facilities with more than 200 locations across 33 states.

COMPLETELY PASSIVE OWNERSHIP
DOCS operates under a NNN lease, which shifts all associated costs and responsibilities to the tenant. The condo association is responsible for repairs and maintenance of all common areas and elements and is managed by a third-party management company responsible for day-to-day operations. Not only does this create a passive ownership structure for the DOCS landlord, but it adds additional layers of management and oversight from the tenant to the condo association and the management company.

MAJOR CAPEX RENOVATIONS
As part of the recent 10-year lease extension, ownership has agreed to partially fund, up to $600,000, the tenant’s upcoming capex renovations that will ensure the longevity of the facility by incorporating state-of-the-art surgical equipment and the latest healthcare technology available. It’s rare to see a medical tenant relocate once they’ve made a hefty reinvestment into their space, greatly reducing the possibility of a vacancy in the future.

MISSION CRITICAL LOCATION
The subject property is located less than one mile from the 1,039-bed, 1.3-million-square-foot Christiana Hospital and is adjacent to significant complementary medical office space along Ogletown-Stanton Road. The site is also near several of Delaware’s largest employers, including ChristianaCare healthcare campuses (1 mi.), Bank of America Corporate Campus (1 mi.), University of Delaware (3 mi.), JPMorgan Chase Corporate Campus (3.6 mi.), and the Christiana Mall (4.4 mi.).

REGIONALLY ACCESSIBLE HUB LOCATION
The subject property is highly visible and easily accessible via Christiana Road, with traffic counts exceeding 48,940 vehicles per day. Newark, DE is centrally located with direct access to major regional thoroughfares including I-95, Hwy-273, Hwy-72, Hwy-7, Hwy-4, Hwy-2 and Route 1 to name a few. Combined, these corridors carry hundreds of thousands of vehicles per day throughout the Newark MSA.

EXCEPTIONAL DEMOGRAPHICS
The area is supported by strong demographics, with more than 199,000 residents within a 5-mile radius and 468,000 residents within a 10-mile radius, and an average household income exceeding $109,000.