Two Building Medical Office - CMBS Loan Assumption

Investment Highlights

• NOI: $736,578
• Stabilized two-building medical office portfolio with Orchards Medical Trail at 90.66% occupancy and the VPA Building at 100% occupancy
• CMBS loan assumption at fixed 4.3% and 2029 Maturity 
• Several credit tenants with long-term tenure to the site(s) and leases that include multiple renewal options
• Excellent submarket conditions with limited construction and inventory being primary drivers behind rent growth (Orchards Medical Trail - Farmington)
• Potential significant cost savings and ample space offerings thereby serving as a potential alternative submarket for tenants from neighboring submarkets to relocate (VPA Building - Southfield)

 

Orchards Medical Trail 
23133 Orchard Lake Road, Farmington, MI 48336

Orchard Trails Medical resides in the Farmington/Farmington Hills Medical Office Submarket (the “Submarket”). The Submarket spans east to west from Haggerty Road to Inkster Road and spans north to south from 14 Mile Road to 8 Mile Road. There are a total of 113 Medical Office Buildings representing roughly 1.6 million square feet of space. Within the Submarket, the Orchard Lake Road corridor has the densest collection of Medical Office Buildings, and the asset is ideally located just 2.4 miles from Beaumont Hospital (formerly Botsford Hospital). Orchard Lake Road is centrally located in the Submarket, forming the dominant north/south corridor with access to I-696. Additionally, the Submarket also benefits from I-275, M-10, and M-5; all of which provide easy access for clients or employees traveling from the larger surrounding Metro Detroit market. The lack of new construction and new inventory in the Submarket have helped drive rental rate growth as tenants demand more space. The current 9.1% vacancy rate will continue to drive rental rates as tenants have fewer availabilities to choose from.

VPA Building
21540 West 11 Mile Road, Southfield, MI 48076

The VPA Building resides within the Southfield Medical Office Submarket (the “Submarket”). Consisting of 125 existing buildings totaling 2.7 million square feet of medical-office space. Many of the properties within the Submarket are an older vintage that ranges in construction dates from the late 1960s to the 1980s. The largest medical-office buildings in Southfield are the Comerica Southfield Tower (152,000 SF), the Providence Medical Building (150,000 SF), Northland Towers Plaza Building (128,000 SF), Adeline Fisher Center (127,500 SF), and Pinewood Plaza (113,750 SF). The Oakland Towne Square complex is situated within walking distance of the Property. With a notable reputation within the Southfield market, the two-building office park garners significant interest from all tenants locating to the area. A short distance west on Northwestern Highway is the 640,000 square foot Beaumont Service Center.