Lehigh Valley Health Network MOB
Lehigh Valley Health Network (S&P “A”) | Multi-Specialty MOB | NNN Lease | Allentown–Bethlehem MSA
Marketing description
325 West Broad Street is a 17,130 RSF, single tenant Medical Outpatient Building that is 100% leased to Lehigh Valley Health Network (LVHN), which carries an investment grade credit rating of “S&P: A”, under NNN lease terms.
The MOB is located approximately 2.5 miles from Lehigh Valley Hospital at Muhlenberg, a 238-bed acute care hospital that is currently undergoing a $95 million expansion. The project will add 153 beds and approximately 93,500 square feet and is scheduled for completion in Fall 2026. The proximity to this major hospital campus reinforces the Property’s integration within LVHN’s broader care network and supports ongoing referral patterns and patient demand.
The Property was redeveloped in 2013, with the original structure demolished and replaced with a purpose-built medical facility. LVHN funded the interior buildout, reinforcing long-term tenancy and operational commitment to the location. The asset provides a stable, credit-backed income stream supported by an investment-grade health system.
The Property operates as a multi specialty outpatient facility within LVHN’s network. The 1st floor houses women’s health, primary care, and internal medicine. The 2nd floor is dedicated to pediatrics and is affiliated with Lehigh Valley Reilly Children’s Hospital. The 3rd floor is fully occupied by OB/GYN services and has a procedure room to perform minor surgical procedures. The building’s configuration supports a comprehensive care delivery model, driving consistent patient volumes and serving as a critical access point for outpatient services in the Bethlehem submarket.
The Property is situated within a well-established healthcare corridor in Bethlehem, surrounded by a dense concentration of medical providers, including St. Luke’s University Hospital – Bethlehem Campus. The surrounding area includes a mix of primary care practices, specialty clinics, and outpatient facilities, supported by strong residential density, access to regional transportation routes, and proximity to downtown Bethlehem.
Investment highlights
LVHN funded the interior buildout of the facility following the 2013 redevelopment, demonstrating a significant capital investment and long-term operational commitment to the location.
Multi-Specialty Outpatient Facility
The Property functions as a comprehensive, multi-specialty outpatient center, including women’s health, primary care, minor procedures, pediatrics, and OB/GYN services, supporting consistent patient demand and diversified service offerings.
Dominant Regional Health System
LVHN is among the largest and most financially stable health systems in Pennsylvania, with 14 hospitals, 300+ outpatient locations, and over 20,000 employees, ensuring institutional backing and long-term viability.
Investment-Grade Credit Tenancy
100% leased to Lehigh Valley Hospital, Inc., a subsidiary of Lehigh Valley Health Network, which maintains an investment-grade credit rating of “S&P: A”.
Proximity to Major Affiliated Hospital
Located approximately 2.5 miles from Lehigh Valley Hospital – Muhlenberg, a 238-bed acute care hospital, reinforcing strong referral patterns and integration within the health system’s care delivery network.
Hospital Expansion Driving Demand
Lehigh Valley Hospital – Muhlenberg is currently undergoing a $95 million expansion, adding 153 beds and approximately 93,500 square feet, with completion expected in Fall 2026, further increasing patient volume and outpatient demand.
Long-Term NNN Lease | Durable Cash Flow
Upon completion of construction in 2013, LVHN executed a 10-year NNN lease featuring 4.00% rent increases every two years, along with three (3) five-year extension options with the same escalation structure.
Merger with Jefferson Health
In August 2024, LVHN merged with Jefferson Health, creating one of the 15 largest nonprofit health systems in the United States. The combined system now includes 32 hospitals, 700+ care sites, and approximately 65,000 employees.
Mission-Critical Outpatient Asset
The multi-specialty medical outpatient building is integral to LVHN’s outpatient care strategy, supporting system growth and reducing reliance on inpatient settings.
Strategic Lehigh Valley Location
The Allentown–Bethlehem–Easton MSA is the third- largest metro in Pennsylvania, strategically located between Philadelphia and New York City, with expanding healthcare infrastructure and strong employment growth.
Additional Parking Lot
The offering includes an adjacent parking lot, which is utilized for staff parking and brings the parking ratio to 4.2 spaces / 1,000 SF.
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