Eskenazi Health (S&P: AA+) - Indianapolis, IN
Retail | 6.75% CAP | 15,000 SqFt
Marketing description
Eskenazi Health is one of the nation's largest and oldest essential health systems, providing high-quality, cost-effective, patient-focused care to Marion County and Central Indiana for more than 165 years. The system includes a 333-bed flagship hospital and a network of community health centers located throughout Indianapolis. Eskenazi Health delivers more than 1 million outpatient visits each year. The organization partners with the Indiana University School of Medicine to provide comprehensive specialty and academic medical services. It has been recognized nationally as a leading place to work in healthcare.
The Subject Property was taken down to the pad in 2023 and rebuilt to suit for the Tenant, including a new roof, HVAC, and parking lot. The Tenant also built out the interior improvements to the building at a cost of over $3.3M, demonstrating a significant long-term commitment to the location.
The lease is guaranteed by The Health and Hospital Corporation of Marion County (HHC), which has an AA+ credit rating from S&P and an Aa1 rating from Moody's. Eskenazi Health is operated by HHC and functions as the public hospital division providing clinical care, trauma services, mental health services, emergency services, and community-based programs.
Investment highlights
- Tenant Investment of $3.3M - The Subject Property was taken down to the pad in 2023 and rebuilt to suit for the Tenant, including a new roof, HVAC, and parking lot. The Tenant also built out the interior improvements to the building at a cost of over $3.3M, demonstrating a significant long-term commitment to the location.
- Investment Grade Credit Tenant - The lease is guaranteed by The Health and Hospital Corporation of Marion County (HHC), which has an AA+ credit rating from S&P and an Aa1 rating from Moody's. Eskenazi Health is operated by HHC. Since 1859, Eskenazi Health has served Marion County residents as one of America's largest essential healthcare systems.
- NNN Lease - The lease is a NNN structure, with the vast majority of responsibilities handled by the tenant, including maintenance, repairs, and operating expenses, providing for a passive investment with minimal landlord obligations.
- Large Upcoming Rental Increase in March 2027 - The lease provides for two significant rent increases, occurring every three years, equal to the greater of 2.25% annually or CPI annually. Based on recent CPI performance, the scheduled adjustment on March 1, 2027 is projected to result in an estimated increase of approximately 16%.
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