University Hospitals Urgent Care by WellStreet

Cleveland | Ohio

University Hospitals Urgent Care by WellStreet

1407 West 117th Street Cleveland, Ohio 44107

Offering Summary

  • Status: just listed
  • Price: $3,478,000
  • Cap Rate: 5.75%
  • GLA: 4,000 SF
  • Net Operating Income: $200,000
  • Year(s) Built: 2024
  • Lot Size (Acres): 0.48
  • Lease Type: Double Net
  • Major Tenants: University Hospitals Urgent Care by WellStreet, LLC, a Delaware limited liability company
  • 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
EXCLUSIVELY LISTED BY:

Craig Fuller

Senior Managing Director