Cleveland Clinic Health & Surgery Center with 7 Years Remaining on Original 30-Year Absolute NNN Ground Lease in Strongsville, OH (Cleveland MSA)
Premier Healthcare Credit Tenant: Cleveland Clinic Foundation – High Investment-Grade Credit Rating of S&P “AA” and Moody’s “Aa2”
Built-to-Suit in 1998 – 23 Year Operating History at Site
Cleveland Clinic is Consistently Ranked the #2 Hospital System in the World – Internationally Known Healthcare Brand and One of the Top Names in Healthcare, Period
15% Rent Increase in Two Years Takes CAP Rate to 5.75% at List Price
Offered Well Below Replacement Cost – Value of the Leasehold Improvements Far Exceeds Offering Price Which Equates to $94/SF on Building GLA
Huge 15% Rent Increases Every 5 Years Throughout Base Term and In Options Provide Meaningful NOI Growth and Inflation Hedge
Strong Operational Commitment to Location – Outpatient Surgery, Advanced Imaging (CT/MRI), Oncology Pharmacy & Infusion, Pharmacy, Urgent Care & Numerous Medical Specialties Offered On-Site Making Facility Mission-Critical to Tenant’s Business
Tenant’s Massive Investment in Leasehold Improvements, Fixtures & Equipment as well as Control of 9.53 Acres of Prime Highway-Adjacent Real Estate Afforded via the Purchase Option Gives Tenant Strong Incentives to Continue to Renew Ground Lease for Decades to Come
Ongoing Tenant Investment into Upgrading Facility to Keep it Modern/Class “A”: Major Renovations Over the Past 8 Years in Adding New Units (Allergy, Urgent Care, Oncology Infusion), Relocating or Expanding Existing Units, General Renovations, and Replacing Capital Items
Ideal Convenience-Oriented Location – Highway Exit Real Estate (I-71, 80,000 VPD) with Direct Frontage & Visibility to Route 82 (50,000 VPD) and Multiple Access Points
Infill Location with Significant Barriers to Entry to Any New Large-Scale Development or Redevelopment Mitigating Any Relocation Risk
Located within Primary Commercial Corridor Serving the Cleveland West-Side Suburbs of Strongsville, North Royalton, Broadview Heights, Brecksville, Berea, Columbia Station, and More
Key Geographic Location for Cleveland Clinic – Nearest Facilities of Comparable Size/Scope of Services are in Brunswick (6.8-Mile Drive South) and Independence (18.2-Mile Drive Northeast)
Absolute NNN Lease with Minimal Landlord Operational Responsibilities – All Operating Expenses Reimbursed, Landlord Only Responsible for Coordination of CAM but Compensated with 15% Admin Fee
Shadowed by 1.65 Million SF SouthPark Mall with 7.8 Million Annual Customer Visits (#2 Busiest Retail Destination in Cleveland) – Mall Anchors the Larger Route 82 Commercial Corridor
Cleveland MSA – Home to a Population of Over 2 Million, Part of the Larger Cleveland-Akron-Canton CSA with a Population of 3.5 Million