Franciscan Health Medical Building
STNL Medical Bldg. | NNN Lease | Investment-Grade Tenant
Marketing description
The Klink Group of Marcus & Millichap is pleased to exclusively offer for sale the single-tenant net-leased specialty medical office investment leased to Franciscan Alliance, Inc., one of the Midwest's premier investment-grade healthcare systems. The offering presents a compelling opportunity to acquire a well-located outpatient medical asset while generating a 13.38% CAP rate during the remaining lease term. Backed by an "AA" Fitch-rated healthcare system, the property combines institutional-quality tenancy with a rare double-digit going-in yield. The offering provides investors with strong current income while preserving multiple exit strategies, including lease extension with Franciscan Alliance or future repositioning to another medical or specialty user. Offered at approximately $168 per square foot, the acquisition basis is significantly below today's estimated replacement cost for a comparable outpatient medical facility, creating meaningful intrinsic value and helping mitigate downside risk.
The tenant currently operates the Franciscan Physician Network Schererville Health Center from this location, providing crucial community-based medical services including Family Medicine, Internal Medicine, and Obstetrics & Gynecology. Franciscan has successfully occupied this 13,380-square-foot facility since its construction in 2006, demonstrating the property's long-standing strategic importance within Franciscan's regional outpatient network.
Investors benefit from approximately 1.5 years of contractual cash flow under a favorable Triple-Net lease structure before having the opportunity to negotiate a lease extension with Franciscan Alliance or reposition the asset for another outpatient medical or specialty healthcare user. This creates a differentiated investment opportunity combining immediate cash flow with meaningful long-term value creation through multiple exit strategies.
Investment highlights
High-Yield Medical Office | Passive Investment: Offered at an attractive 13.38% CAP Rate, providing strong current cash flow rarely found with investment-grade credit tenants
Investment-Grade Corporate Guaranty: Backed by an "AA" Fitch-rated healthcare system operating 12 hospital campuses and over 300 care sites throughout Indiana, Illinois and Michigan.
20-Year Proven Tenant History: Franciscan has continuously occupied the building since its construction in 2006, demonstrating the property's long-standing importance within its regional outpatient network despite continued investment in newer facilities throughout Northwest Indiana.
Favorable Triple-Net (NNN) Structure: Minimal landlord oversight required; the tenant reimburses for real estate taxes, insurance, and CAM, allowing for an optimized passive investment structure.
Listing Contacts
Valuation Calculator
Valuation Metrics
Map
Zoning
Broker Selected Comps View More Comps
Property History
Similar Properties
Additional Information
Is there information that looks off?


