Investment Overview
This offering includes two medical office properties located at 2015 and 2041 Valleygate Drive in Fayetteville, NC, both leased to Cumberland County Hospital System, Inc. d/b/a Cape Fear Valley Health System. The properties are utilized for medical office operations and provide investors with long-term healthcare tenancy backed by an established regional health system. The leases feature seven-year initial terms, 2% annual rent increases beginning in year 3, and three three-year renewal options, providing contractual income growth and the potential for extended occupancy. Structured on an NNN lease, the tenant reimburses real estate taxes and applicable insurance and common area expenses, reducing landlord operating responsibilities.
The portfolio is offered at $6,985,000 and is projected to generate approximately $487,146 in Year 1 NOI, equating to a 6.97% cap rate. Both properties are leased for established medical use and benefit from their close proximity along the Valleygate Drive corridor. The combination of healthcare tenancy, annual rent growth, renewal options, and an expense-reimbursement structure creates a compelling opportunity for investors seeking durable cash flow from medical office real estate.
Investment Highlights
- 6.97% Cap Rate – $487,146 Year 1 NOI
- Cape Fear Valley Health System – Regional healthcare tenant
- Long-Term Leases – Seven-year initial terms
- Annual Rent Increases – 2% contractual escalations starting Year 3
- Renewal Options – Three three-year options
- NNN Leases – Reduced landlord responsibilities