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29880947
29880948

106 S Claude A Lord Blvd, Pottsville, PA 17901

MM
CA CA 01982943
Matthews
RC
CA 01986299
Matthews
TS
CA 02238285
Matthews
Listed by Matthews
$3,812,447
23 days on market
Updated 23 days ago

LeHigh Valley Health Network | 14+ Yr Term | Abs NNN Lease

Details
Property Type Office
Sub Type Medical Office
Square Footage 12,900
Cap Rate 5.75%
NOI $219,216
Lease Type NNN
Lease Term 15
Lease Expiration 05/31/2040
Remaining Term 14
Rent Bumps Yes
Price per SqFt $296
Acreage 0.880
Investment Type Net Lease
Lease Commencement 05/21/2025

Absolute NNN Medical Office Leased to Investment Grade Health System with 14+ Years Remaining

Investment highlights

  • Premier Health System Operator: On August 1st, 2024, Lehigh Valley Health Network completed its merger with Jefferson Health, forming a major regional academic health system serving Pennsylvania and New Jersey, creating a system with 32 hospitals, over 700 care sites, and approximately 62,000 employees.

  • Investment Grade Credit Backed Lease: The lease is backed by a full corporate guarantee from Lehigh Valley Health Network, Inc., a Pennsylvania non-profit corporation. Lehigh Valley Health Network is part of Jefferson Health (S&P: A).

  • Absolute Net Lease Structure: The agreement is an absolute net lease where the Tenant is responsible for all operating expenses and is responsible for reimbursing capital expenditures on an amortized basis.

  • Long-Term Lease: The property features a fifteen (15) year initial term with over 14 years remaining, providing long-term stability and cash flow.

  • Attractive Rent Growth: The lease includes 2.5% annual rental escalations throughout the lease term, offering investors consistent rent growth and a great hedge against inflation.

  • Direct Expense Management: The Tenant manages and pays for all operating expenses directly, including real estate taxes, insurance, and utilities.

  • Capital Expenditure Reimbursement: While Landlord funds or reimburses Capital Replacements, the Tenant is required to pay back the amortized cost at SOFR plus 250 basis points as Additional Rent.

  • Favorable Depreciation: This opportunity offers investors the ability to capture more favorable depreciation and tax savings advantages through a cost segregation study. *Investors to confirm with their own CPA.

Listing Contacts

MM
CA CA 01982943
Matthews
RC
CA 01986299
Matthews
TS
CA 02238285
Matthews
Listed by Matthews

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Loan Amount
$0.00
Annual Debt Service
$--
$--
Annual Cash Flow
$219,216.00
$18,268.00/mo

Valuation Metrics

0
DSCR
5.75%
Cap Rate
5.75%
ROI

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Additional Information

Name
Kyle Matthews
License
RB068831, RM423998 (PA)
Brokerage
Matthews Real Estate Investment Services, Inc
Brokerage Phone
(866) 889-0550
Title
Broker of Record
Brokerage Address
1600 West End Ave, Ste. 1500 Nashville, TN 37203
*All information is deemed reliable but not guaranteed. Buyer to verify all information.
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