Cleveland Clinic Surgery Center | Medical Building
High Profile | Cleveland Clinic Surgery Center
Marketing description
The Cleveland Clinic & Pioneer Physicians Medical Center is a two-tenant medical office building located in Fairlawn, Ohio. This 14,596 square foot property is 100% occupied and anchored by Cleveland Clinic's urology and surgery center, which has been at this location for over 25 years. The building is strategically positioned in the heart of the Fairlawn retail corridor with excellent visibility on West Market Street, which sees 18,602 vehicles per day. The property features strong investment fundamentals including a weighted average lease term (WALT) of 5.59 years, an 8.12% current cap rate, and an 8.49% cap rate effective April 2027. Below market rents with both tenants having recently exercised their last remaining lease options early, demonstrating strong commitment to the site and huge upside potential to increase the ROI upon the lease expirations. Cleveland Clinic holds an Aa2 credit rating from Moody's, designating it as investment-grade credit. The location benefits from strong demographics with $100,000+ household income and over 100,000 population within a 5-mile radius. The property is positioned less than 2 miles from Route 77 and 1.2 miles from Summit Mall, providing excellent regional accessibility. The building features poured concrete and steel construction with low maintenance requirements and major CapEx investments completed in the last 10 years.
Investment highlights
- 100% Occupied Two-Tenant Medical Office Building
- Long-Term Occupancy | The Urology Office Has Occupied The Property Since 2001.
- The Cleveland Clinic Has An Aa2 Credit Rating From Moodys, Designating It As Investment-Grade Credit.
- Excellent Visibility With Frontage On West Market St. Seeing 18,602 VPD.
- Positioned In The Heart Of The Fairlawn Retail Corridor Surrounded By National Tenants Such As: Target, Marcs, Giant Eagle, Huntington Bank, Whole Foods, PNC, GolfTec, Ashley, Panera, Starbucks, Jersey Mikes, and more!
- Strategically Positioned 1.2 Miles From Summit Mall.
- Strong Regional Accessibility | Less Than 2 Miles From Rt. 77.
- Brand New 5 Year Lease Extensions Signed Early By Both Tenants Showing Commitment To The Site And Demand Within The Trade Area.
- No Lease Options Remain For Either Tenant Allowing Maximum Flexibility When The Terms Expire.
- Below Market Rents Providing Significant Up-Side At Lease Expiration.
- Strong Demographics With $100,000+ HH Income and Over 100,000 Population Within A 5-Mile Radius.
- In 2017 Cleveland Clinic Invested Over $200,000 Into The Space Showing Long-Term Commitment.
- High Likelihood of Cleveland Clinic Maintaining Presence At The Property | Cleveland Clinic Is Grandfather In Under The ACA Passed In 2015 Providing Them The Ability to Charge Facility Fees At This Location Allowing Them To Earn Significantly More Revenue (3-5x) At This Location | If They Relocated Anywhere Else They Will Loss The Ability To Charge These Fees.
- Low Maintenace Concrete Construction With Major CapEx Investment In The Last 10 Years.
- Urology Surgery Center Has Been At This Location for 25+ Years.
Listing Contacts
Valuation Calculator
Valuation Metrics
Broker Selected Comps View More Comps
Property History
Tax History
Similar Properties
Is there information that looks off?
