Listed by Matthews
$7,100,000
Aspirus St. Luke's Clinic - Duluth
Details
Property Type Office
Sub Type Medical Office
Square Footage 20,512
Cap Rate 6.65%
NOI $471,776
Occupancy 100%
Tenancy Single
Lease Type Absolute NNN
Lease Expiration 12/31/2033
Rent Bumps Yes
Lease Options One, 5-Year Option
Price per SqFt $346
Class A
Year Built 1997
Buildings 1
Acreage 2.140
Parking Spaces spaces
Investment Type Net Lease
Tenant Credit Credit Rated
Lease Commencement 04/01/2026
Ownership Fee Simple
Office | 6.65% CAP | 20,512 SqFt
Investment highlights
- Investment Grade Credit: This is a corporate lease with Aspirus Health (S&P:AA-) parent company, offering a full backstop of the lease obligations by Aspirus' investment grade credit rated entity.
- Dominant Regional Health System: Headquartered in Wausau, WI, Aspirus Health (S&P: AA-) is a dominant healthcare network operating 18 hospitals and over 130 outpatient clinics across Wisconsin, Minnesota, and the Upper Peninsula of Michigan.
- Absolute NNN Lease Structure: The tenant is responsible for all property expenses, including roof and structure, offering a truly passive "hands-off" investment for the owner.
- Aggressive Rent Growth: The lease features 3.00% annual rental increases, providing superior income growth.
- Stable Long-Term Yield: With approximately 7.6 years of term remaining, the asset offers durable and predictable cash flow from a "sticky" medical tenant.
- Favorable Demographics: According to the U.S. Census Bureau, Duluth has a favorable population with approximately 17% of the population being 65 years of age or older, ensuring that demand for healthcare will remain strong.
- Favorable Depreciation: - Given the build out at this facility, this opportunity offers investors the ability to capture more favorable depreciation advantages through a cost segregation study. *Investors to confirm with their own CPA.
- Medical Services: This property offers attractive medical service lines such as family medicine, nephrology, and physical therapy.
Listing Contacts
Listed by Matthews
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Loan Amount
$0.00
Annual Debt Service
$--
$--
Annual Cash Flow
$471,776.00
$39,314.67/mo
Valuation Metrics
0
DSCR
6.64%
Cap Rate
6.64%
ROI
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