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31433561

2831 Lone Oak Rd, Paducah, KY 42003 For Sale

RL
NJ NJ 2189708, PA RS379091
Zeustra Healthcare Real Estate Advisors
Listed by Zeustra Healthcare Real Estate Advisors
$8,500,000
74 days on market
Updated 74 days ago

Ambulatory Surgery Center

Details
Property Type Office
Sub Type Medical Office
Square Footage 21,236
Net Rentable (SqFt) 21,236
Cap Rate 7.5%
NOI $637,080
Occupancy 100%
Tenancy Single
Lease Type NNN
Lease Term 15
Lease Expiration 06/01/2041
Remaining Term 15
Rent Bumps Yes
Lease Options Yes
Class A
Year Built 1992
Year Renovated 2016
Buildings 1
Investment Type Institutional
Lease Commencement 04/01/2026
Ground Lease No
Ownership Fee Simple
Sale Condition Sale for leaseback

Institutional-Quality ASC Investment | 21,236 SF Surgery Center | New 15-Year NNN Lease

Marketing description

Zeustra, LLC (“Zeustra”) is pleased to present the exclusive opportunity to acquire 2831 Lone Oak Road, Paducah, Kentucky—a purpose-built ±21,236 SF ambulatory surgery center (“ASC”). The offering is structured with a new 15-year NNN lease featuring 2.5% annual escalations.

The practice has demonstrated continued financial momentum, growing revenue, and operates at an approximate 29% margin. This level of profitability is well above the typical range for independent ASCs and is more consistent with the performance profile of larger corporate ASC platforms. The property’s ASC designation benefits from Kentucky’s Certificate of Need (CON) regulatory framework, which restricts new ASC development and creates meaningful barriers to entry. This regulatory advantage is further reinforced by the tenants long-standing operating history at the site, dating back to 1992.

The center includes six operating rooms and one treatment room and performs a range of highly specialized procedures including interventional pain treatments, intrathecal pump placements, and spinal cord stimulator procedures. These procedures represent one of the fastest growing segments within outpatient medicine. All procedures performed by Pain Management Centers of America (“PMCOA”) physicians in the Paducah market are conducted at this facility, while the ASC structure also allows additional surgeons to utilize the center.

The asset has also benefited from meaningful capital investment. In 2016, the tenant invested approximately $1,600,000 into a comprehensive facility renovation, which included a full building refurbishment, a new waiting room, the addition of three operating rooms, and 12 patient rooms.

Investment highlights

  • Purpose-built 21,236 SF ambulatory surgery center with six operating rooms designed for specialized outpatient procedures.
  • Practice operates at roughly a 29% margin, well above typical independent ASC benchmarks and more in line with larger corporate ASC platforms.
  • $637,080 annual NOI backed by a single-tenant healthcare operator.
  • Long-standing tenant operating history dating back to 1992.
  • New 15-year NNN lease with 2.5% annual rent escalations providing predictable income growth.
  • Integrated referral pipeline from the adjacent Pain Management Centers of America clinic campus.
  • Facility has demonstrated expansion capability over time, growing from one original operating room to six approved operating rooms through multiple successful CON approvals.
  • Regional healthcare hub drawing patients from Western Kentucky, Southern Illinois, Southeast Missouri, and Northwest Tennessee.
  • In 2016, the tenant invested approximately $1,600,000 in a comprehensive facility renovation, which included a full building refurbishment, a new waiting room, three additional operating rooms, and 12 patient rooms.

Listing Contacts

RL
NJ NJ 2189708, PA RS379091
Zeustra Healthcare Real Estate Advisors
Listed by Zeustra Healthcare Real Estate Advisors

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Loan Amount
$0.00
Annual Debt Service
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Annual Cash Flow
$637,080.00
$53,090.00/mo

Valuation Metrics

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DSCR
7.5%
Cap Rate
7.5%
ROI

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