6200 Central Ave, Portage, IN 46368

LONG-TERM TENANT COMMITMENT

The building was completely re-developed to Northwest Medical Group’s precise specifications in 2020. The tenant’s 10-year lease commitment through October of 2030 and three, five-year options cement its dedication to the location for the foreseeable future. Ownership benefits from secure going-in cashflow and rental escalations of 2% per annum.

DOMINANT REGIONAL MEDICAL GROUP

Alongside Northwest Health, Northwest Medical Group is the dominant regional healthcare network comprised of three hospitals and more than 30 physician office locations spread across Northwest Indiana. Northwest Health serves a population of over 700,000 people within the region, making the Property a vital part of the region’s healthcare infrastructure. The Northwest Health network includes five emergency departments, six urgent cares, three outpatient surgery centers, occupational medicine centers, and an inpatient rehabilitation unit. Northwest Health possesses more than 4,000 employees and 700 physicians.

SOLID MEDICAL DRIVERS + EASILY ACCESSIBLE

Portage serves as a major medical hub for the region, anchored by Porter County’s Regency and Northwest Health Hospitals – 2.5 miles and 7 miles away from the Property respectively. The Property is 0.7 miles south of Interstate 80/90 and 2.2 miles north of U.S. Route 6. The South Shore Line commuter rail is just 4 miles north of the Property. Positioned on Central Avenue, just east of the highly trafficked Willowcreek Road, the location offers a variety of restaurant options, as well as neighboring Walgreens, Family Dollar, and grocer Strack & Van Til.

STRONG MEDICAL OFFICE FUNDAMENTALS

Demand for medical office continues to outpace supply. Annual nationwide medical office absorption averaged 16.3 million square feet over the last three years, leading to additional upward pressure on rental rates. Furthermore, with the aging of the baby boomer generation, there is an increasing demand for healthcare services, which translates into a growing demand for medical office buildings in the coming years. By 2030, 21% of Americans will be 65 years or older, which will mark the first time that older people are projected to outnumber children.

INDIANA = BUSINESS FRIENDLY STATE

The Property is located just 23 miles east of the Indiana/Illinois border, and benefits from Indiana real estate taxes that are significantly lower than those of nearby Cook County and Illinois as a whole. Corporate state income tax, worker’s compensation, and unemployment costs all average 30% lower than those of Illinois. Additionally, Indiana offers an overall cost of living of 8% below the U.S. average, led by average housing costs 22% lower than the national average.

SOLID DEMOS + POPULATION GROWTH

The Property features a solid set of demographics, with an average household income of nearly $80,000 and a median home value of $181,000+ within three miles. The population within three miles has experienced 16% growth since 2000.