University Hospitals Urgent Care by WellStreet 10-Year Lease in Cleveland, Ohio
New 2024 Build-to-Suit Construction; Class “A” Quality with 4-Sided Masonry Exterior
Hyperdense, Middle-Income Trade Area – Huge 25,120 Population and 14,100 Households in a 1-Mile Radius; $68K/3-Mi AHHI
Irreplaceable Hard Corner Site; Located at Signalized Intersection of Two Arterials with a Combined 22,200 VPD
Just 1-Mile North of I-90 Exit Ramps (I-90 = 128,000 VPD)
Excellent Visibility via Zero Setback from Both Roadways and Prominent Storefront Façade & Signage
Landlord-Favorable Double-Net “Plus” Lease; Landlord Responsible for Replacement of Roof Only (2024-Installed w/ 20-Yr Transferrable Warranty)
Passive Investment: Tenant Pays Taxes Direct, Self-Maintains CAM, and is Responsible for All Maint/Repair/CapEx Except Roof Replacement and Structure
9% Rent Increase in 2029 and 12% Rent Increases in Options
Lessee is a JV Partnership between University Hospitals (UH) and WellStreet Urgent Care with 20+ Urgent Care Units in Operation
University Hospitals – Local Big “3” Health System in Cleveland MSA; 2nd Largest Health System in Cleveland & Ohio; Non-Profit with $4.5B+ Annual Revenue, Moody’s “A2” Investment-Grade Credit
WellStreet Urgent Care – Atlanta-Based, Privately-Held Urgent Care Management & Operations Company; In Business Since 2011; PE Backing from FFL Partners ($6B AUM)
UH & WellStreet JV Partnership Proven Successful by Impressive Rollout of 20+ Freestanding New-Build, Freestanding Retrofit, and Inline/Shopping Center Urgent Care Clinics throughout the Cleveland MSA in the Past 2 Years
WellStreet’s Strategy (JV Operating Partnership Model) with Major Health Systems Proven Successful via 140+ Units in Operation in 4 States, with Other JV Healthcare Systems Including Piedmont (Atlanta), Prisma Health (South Carolina), and Beaumont (Detroit)
University Hospitals by WellStreet has become the Leading Urgent Care Operator in the Cleveland MSA (2.2 Million Population); Broad Insurance Coverage & Patient Base Throughout the Region
W 117th Street Corridor – Major Daily Needs Retail/Services Corridor with Major Traffic Drivers Including Target, Home Depot, Giant Eagle, Aldi, GFS, and Numerous QSR & Auto Parts/Service Businesses
Strong Intrinsic Value in the Underlying Real Estate – 0.48-Acre Hard Corner Site, Infill Demos, New Class “A” 4,000 SF Building
Substantial Middle-Income Density in All Directions – 126,000/3-Mi and 255,00/5-Mi Population Counts; $70K/5-Mi AHHI
Cleveland MSA is Home to a Population of Over 2.2 Million; Part of the Larger Cleveland-Akron-Canton MSA with a Population of 3.6 Million