Bethlehem, PA (January 19, 2016) — Sands Investment Group, (SIG), the fastest growing net lease firm in the nation, has announced the net lease sale of two Pennsylvania medical office buildings located in the cities of Whitehall and Bethlehem.
The transactions include: The $4,415,658 million sale of a 22,742-square-foot, three-tenant medical office property located at 2014 County Line Road in Bethlehem. The property, in an optimal medical area surrounded by a number of hospitals and clinics, is situated within a mile of the Lehigh Valley Hospital. Tenants include Fresenius, RMS, a DaVita subsidiary, and Valley Kidney Specialists. SIG sold the building, developed in 1972, at $194 per foot at a 6.8 cap rate.
The $3,125,000 million sale of a 10,170-square-foot single tenant medical office building anchored by Fresenius Medical Care. The property is located at 1320 Mickley Road in Whitehall. This is an extremely strong location near six major area hospitals. SIG achieved a cap rate of 6.7 on this transaction. Bryant Hoover of Sands Investment Group’s Santa Monica office represented the seller, a doctor/owner, in both transactions. The buyer for both properties was an East Coast institutional investment firm. According to Bryant Hoover of Sands Investment Group’s Santa Monica office, both properties had short -term leases that needed to be restructured prior to the disposition in order to achieve the desired return, Based on Hoover’s extensive experience in the net lease medical office sector along with his in-depth relationships with institutional investors and REITs, he was able to effectively position these buildings by educating the doctors on cap rates and structuring a sale/leaseback which helped the doctors create a sales price that exceeded their expectations. “This in turn gave the buyers a long-term investment asset with great returns, thus a win-win for both sides,” said Hoover. “REITs currently own less than 20 percent of the entire US medical office market,” added Hoover, “By structuring a sale/leaseback with the doctors and owners of the MOB, these assets become more desirable for future investors,” added Hoover.