MUSC Health
Office | 7.50% CAP | 31,000 SqFt
Marketing description
Matthews™ Healthcare Division is pleased to present a premier investment opportunity: ownership of MUSC Health Pathology located at One Science Court in Columbia, South Carolina. The offering consists of a ±31,000-square-foot medical outpatient facility leased to MUSC Community Physicians under a NNN lease structure, providing investors with a passive ownership profile and limited landlord responsibilities. The lease features attractive annual rental increases of approximately 3.00%, supporting consistent income growth and a hedge against inflation.
The asset is leased to MUSC Community Physicians, the physician network affiliated with the Medical University of South Carolina, which benefits from an AA+ credit rating from S&P Global Ratings through its affiliated health system. MUSC Health operates a large-scale, integrated platform with numerous hospitals and hundreds of care locations across South Carolina, supporting millions of patient encounters annually. This affiliation provides institutional backing, significant operational scale, and access to capital, reinforcing the tenant's long-term stability and overall credit profile.
With approximately four (4) years of term remaining and two, five-year renewal options, the investment offers stable in-place cash flow with long-term optionality. The property is strategically located in Columbia, the state capital and a key healthcare hub, benefiting from a diverse economic base anchored by government, education, and medical institutions. This offering represents an opportunity to acquire a well-located healthcare asset supported by a scaled, academically affiliated operator with durable demand drivers and predictable income.
Investment highlights
- Credit Tenant Affiliation: The Medical University Hospital Authority (MUHA), part of Medical University of South Carolina, holds an AA+ rating from S&P Global Ratings. The property is leased to MUSC Community Physicians, an affiliated entity, providing strong regional healthcare credit and operational stability.
- $8.3 Billion Dollar Budget: The Medical University of South Carolina (MUSC) Board of Trustees approved an $8.3 billion operating budget for the 2025–2026 fiscal year. This budget supports academic, research, and clinical operations, including a workforce of nearly 34,000 members.
- NNN Lease Structure: The asset is secured by a NNN lease, limiting landlord obligations and delivering a passive, management-light investment with predictable income, ideal for out-of-state and hands-off investors.
- 3% Annual Rent Increases: The lease includes 3.00% annual rent escalations, providing consistent income growth and an effective hedge against inflation.
- Core Diagnostic Infrastructure: The ±31,000 SF facility is utilized for pathology services, supporting essential diagnostic operations that underpin regional healthcare delivery.
- Attractive 7.50% Cap Rate: The offering is priced at a 7.50% cap rate, offering a compelling return relative to comparable healthcare investments, driven by the strength of the Columbia, SC location and the tenant's credit profile.
- Strategic Columbia Location: Columbia, SC is a major hub for government, education, and healthcare—the asset benefits from a stable and growing economic base with strong demand for medical services.
- Institutionally Backed Market: Columbia's role as the state capital, combined with proximity to major interstates and healthcare systems, supports long-term real estate stability and tenant demand.
- Potential Tax Advantages: Investors may benefit from accelerated depreciation through a cost segregation study due to the medical buildout.
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