community health systems of carlsbad, nm · 2020. 1. 28. · nathan huffman [email protected]....

NATHAN [email protected]

Direct: 972-865-7991Cell: 214-300-5524

401 NORTH CANAL STREET, CARLSBAD, NEW MEXICO 88220

COMMUNITY HEALTH SYSTEMS OF CARLSBAD, NM

Listed In Conjunction With Jacob Slavec of NAI 1st Valley - License #: 48002AB

PROPERTY OVERVIEW401 NORTH CANAL STREET, CARLSBAD, NEW MEXICO 88220

NATHAN HUFFMANManaging Partner

EMAIL: [email protected]

DIRECT: 972-865-7991

CELL: 214-300-5524

COMMUNITY HEALTH SYSTEMS OF CARLSBAD, NEW MEXICO

TABLE OF CONTENTS

4 INVESTMENT OVERVIEW

5 INVESTMENT HIGHLIGHTS

6 PRICING AND FINANCIALS

7 RENT SCHEDULE

8 NET LEASE STRUCTURE / MAP

9 TENANT OVERVIEW

10 LOCATION OVERVIEW

NATHAN [email protected]

Direct: 972-865-7991Cell: 214-300-5524

Nathan Huffman | Direct: (972) 865-7991 Carlsbad Medical Center |

INVESTMENT OVERVIEW

CARLSBAD MEDICAL CENTER

INVESTMENT OVERVIEW

Address 401 North Canal Street

Lease Entity Pecos Valley of New Mexico LLC

Year Built/Renovated 1962/2009

Lot Area 0.86 Acres

Rentable Area 14,843 SF

Lease Expiration Date 1/31/2030

Term Remaining 10.31 Years

Rent/SF $16.96

Escalations 2% Annually

Renewal Options (2) 5-Year

Option Period Escalations 3% Annually

Peranich Huffman Net Lease Group is pleased to offer for sale on an exclusive

basis, the single tenant net-leased Carlsbad Medical Center. The 14,843 square-

foot facility is home to Community Health Systems (CHS), a leading operator of

general acute care hospitals.

With an approximate 10.3 years of lease term remaining, the lease provides for

(2) 5-Year renewal options. During the inital term, the lease yields 2% annual

rent escalations, while the option periods include an increase to 3% annual rent

escalations. Offered at a 7.50% capitalization rate, the offering provides an investor

with the opportunity to acquire a property with a strong operation that is home to

a national medical tenant that exemplifies a reputation of consistency for both

patients and the real estate investment community.

INVESTMENT HIGHLIGHTS

Nathan Huffman | Direct: (972) 865-7991

10+ Years of Lease Term Remaining

Corporately Guaranteed by CHSPSC, LLC, the Holding Company for Community Health Systems

2% Annual Rent Escalations

(2) 5-Year Renewal Options

3% Annual Rent Escalations During Option Period

Annual Average Daily Traffic - 10,105 Vehicles/Day (2019)

1.1% Market Vacancy Rate

Carlsbad Medical Center |


PRICING & FINANCIALS

PURCHASE PRICE

% CAP RATE

NOI

PRICE PSF

$3,356,500

7.50%

$251,737

$226

$


$431/Sqft - Average On-Market Commerical Real Estate Price/Sqft. for Carlsbad, NM

NET LEASE STRUCTURE / MAP


Expense Category Tenant's Responsibility

Landlord's Responsibility

Exterior Structure √

Roof √

HVAC Replacement √

HVAC Repair √

Janitorial √

Parking Lot √

Landscaping √

Taxes √

Insurance √

Utilities & CAM √


Carlsbad Medical Center Year Begin Date End Date Annual Lease

PaymentMonthly Lease

Payment % Increase

Initial Term

1 1-Feb-20 31-Jan-21 $251,738.64 $20,978.22 2%

2 1-Feb-21 31-Jan-22 $256,773.41 $21,397.78 2%

3 1-Feb-22 31-Jan-23 $261,908.88 $21,825.74 2%

4 1-Feb-23 31-Jan-24 $267,147.06 $22,262.25 2%

5 1-Feb-24 31-Jan-25 $272,490.00 $22,707.50 2%

6 1-Feb-25 31-Jan-26 $277,939.80 $23,161.65 2%

7 1-Feb-26 31-Jan-27 $283,498.60 $23,624.88 2%

8 1-Feb-27 31-Jan-28 $289,168.57 $24,097.38 2%

9 1-Feb-28 31-Jan-29 $294,951.94 $24,579.33 2%

10 1-Feb-29 31-Jan-30 $300,850.98 $25,070.91 2%

Option Term 1

11 1-Feb-30 31-Jan-31 $309,876.51 $25,823.04 3%

12 1-Feb-31 31-Jan-32 $319,172.80 $26,597.73 3%

13 1-Feb-32 31-Jan-33 $328,747.99 $27,395.67 3%

14 1-Feb-33 31-Jan-34 $338,610.43 $28,217.54 3%

15 1-Feb-34 31-Jan-35 $348,768.74 $29,064.06 3%

Option Term 2

16 1-Feb-35 31-Jan-36 $359,231.80 $29,935.98 3%

17 1-Feb-36 31-Jan-37 $370,008.76 $30,834.06 3%

18 1-Feb-37 31-Jan-38 $381,109.02 $31,759.08 3%

19 1-Feb-38 31-Jan-39 $392,542.29 $32,711.86 3%

20 1-Feb-39 31-Jan-40 $404,318.56 $33,693.21 3%


RENT SCHEDULE


Community Health Systems, Inc. (NYSE:CYH), a Fortune 500 company, is one of the

nation’s leading operators of general acute care hospitals. Community Health Systems,

Inc., together with its subsidiaries, owns, leases, and operates general acute care

hospitals in the United States. The company offers general acute care, emergency

room, general and specialty surgery, critical care, internal medicine, obstetrics, diagnostic, psychiatric, and rehabilitation services, as well as skilled

nursing and home care services. It also provides outpatient services at urgent care centers, occupational medicine clinics, imaging centers, cancer

centers, and ambulatory surgery centers. The organization’s affiliates own, operate or lease 110 hospitals in 19 states with approximately 18,000

licensed beds. Community Health Systems, Inc. was founded in 1985 and is headquartered in Franklin, Tennessee. With +$14 billion in revenue (2018),

of which $5.42 billion reported as gross profit, and a market cap exceeding $480 million, Moody’s assigned Community Health Systems, Inc. a Corporate

Family Rating of Caa3. The holding company of Community Health Systems Inc., CHSPSC, LLC’s primary investors include Stonebridge Advisors LLC,

Capital Investment Trust Corporation and Moloney Securities Asset Management, LLC.

TENANT OVERVIEW - COMMUNITY HEALTH SYSTEMS

Nathan Huffman | Direct: (972) 865-7991 Carlsbad Medical Center |


Carlsbad is located in the Chihuahuan Desert on the beautiful Pecos River at an elevation of 3,295 feet. The city, with its tree-lined streets, numerous public parks and

recreation areas, including the municipal beach and greenway along Lake Carlsbad; originated as an oasis - “The Pearl on the Pecos.” As of the 2010 census, the city

population was 26,138. Carlsbad is the principal city of the Carlsbad-Artesia Micropolitan Statistical Area, which has a total population of 55,435.

Carlsbad Real Estate Overview

The average price per square foot for commercial retail properties currently on the market in Carlsbad, NM is $431.

Carlsbad is strategically positioned at the intersection of Highway 285 and Highway 62, the main arteries connecting New Mexico and Texas, and is one of the only

major retail hubs between Albuquerque and San Antonio. The subject property sits on North Canal Street (Highway 285), the major North/South arterial in Carlsbad.

Median housing values in Carlsbad, NM more than doubled from $61,500 in 2000 to $184,000 in 2018, according to a report by the city of Carlsbad. In terms of rentals,

Eddy County had a vacancy rate of 1.1%, the lowest of all counties in NM, and down from 6.7% in 2017. The median home value in Carlsbad, NM is $198,355.

Carlsbad Healthcare Overview

88.7% of the population of Carlsbad, NM has health coverage, with 43.6% on employee plans, 23.7% on Medicaid, 10.7% on Medicare, 9.8% on non-group plans, and

0.991% on military or VA plans. Per capita personal health care spending in the place of Carlsbad, NM was $7,214 in 2014.

3-MILES 5-MILES 10-MILES

Population (2019 Est.) 28,056 32,751 36,160

Households (2019 Est.) 11,255 13,011 14,243

Average Household Income (2019 Est.) $76,848 $76,841 $77,450Avg Per Capita Income Growth (2019-2024 Est.) 5.9% 6.6% 6.8%

CARLSBAD, NEW MEXICOLOCATION OVERVIEW


Offers should be submitted electronically to:

Nathan Huffmanat [email protected] and include the

following information:

Purchase Price

Sources of Debt & Equity

Closing Period

Earnest Money

Other Terms

Peranich Huffman Net Lease Group is a privately held real estate brokerage firm specializing in single tenant net leased medical office investment sales throughout the nation.

Our firm facilitates the purchase & sale of commercial real estate tenanted by Dialysis Operators, Freestanding Emergency Departments, and Surgery Centers.

ABOUT US

Listed In Conjunction With Jacob Slavec of NAI 1st Valley License #: 48002AB

CONFIDENTIAL MEMORANDUM & DISCLAIMER

Peranich Huffman Net Lease Group (“Agent”) have been engaged as the exclusive agent for the sale of the Carlsbad Medical Center of Carlsbad, New Mexico (the “Property”), by the owner of the Property (“Seller”). The Property is being offered for sale in an “as-is, where-is” condition and Seller and Agent make no representations or warranties as to the accuracy of the information contained in this Property Overview document.

The enclosed materials include highly confidential information and are being furnished solely for the purpose of review by prospective purchasers of the interest described herein. Neither the enclosed materials nor any information contained herein is to be used for any other purpose or made available to any other person without the express written consent of the Seller. Each recipient, as a prerequisite to receiving the enclosed, should be registered with Peranich Huffman Net Lease Group as a “Registered Potential Investor” or as “Buyer’s Agent” for an identified “Registered Potential Investor.” The use of this Offering Memorandum and the information provided herein is subject to the terms, provisions and limitations of the confidentiality agreement furnished by Agent prior to delivery of this Offering Memorandum. The enclosed materials are being provided solely to facilitate the prospective investor’s own due diligence for which it shall be fully and solely responsible. The material contained herein is based on information and sources deemed to be reliable, but no representation or warranty, express or implied, is being made by Agent or Seller or any of their respective representatives, affiliates, officers, employees, shareholders, partners and directors, as to the accuracy or completeness of the information contained herein. Summaries contained herein of any legal or other documents are not intended to be comprehensive statements of the terms of such documents, but rather only outlines of some of the principal provisions contained therein. Neither the Agent or the Seller shall have any liability whatsoever for the accuracy or completeness of the information contained herein or any other written or oral communication or information transmitted or made available or any action taken or decision made by the recipient with respect to the Property. Interested parties are to make their own investigations, projections and conclusions without reliance upon the material contained herein.

Seller reserves the right, at its sole and absolute discretion, to withdraw the Property from being marketed for sale at any time and for any reason. Seller and Agent each expressly reserves the right, at their sole and absolute discretion, to reject any and all expressions of interest or offers regarding the Property and/or to terminate discussions with any entity at any time, with or without notice. This Offering Memorandum is made subject to omissions, correction of errors, change of price or other terms, prior sale or withdrawal from the market without notice. Agent is not authorized to make any representations or agreements on behalf of Seller.

Seller shall have no legal commitment or obligation to any interested party reviewing the enclosed materials, performing additional investigation and/or making an offer to purchase the Property unless and until a binding written agreement for the purchase of the Property has been fully executed, delivered, and approved by Seller and any conditions to Seller’s obligations thereunder have been satisfied or waived.

By taking possession of and reviewing the information contained herein, the recipient agrees that (a) the enclosed materials and their contents are of a highly confidential nature and will be held and treated in the strictest confidence and shall be returned to Agent or Seller promptly upon request; and (b) the recipient shall not contact employees or tenants of the Property directly or indirectly regarding any aspect of the enclosed materials or the Property without the prior written approval of the Seller or Agent; and (c) no portion of the enclosed materials may be copied or otherwise reproduced without the prior written authorization of Seller or Agent or as otherwise provided in the Confidentiality and/or Registration Agreement executed and delivered by the recipient(s) to Peranich Huffman Net Lease Group.

401 NORTH CANAL STREET, CARLSBAD, NEW MEXICO 88220

community health systems of carlsbad, nm · 2020. 1. 28. · nathan huffman [email protected]....

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