ID#0038154   Approximate Beds/Units:  62/74     Location:  Phoenix

Another firm is pleased to introduce a 31,181 SF Health Care Building in Phoenix. This NNN investment opportunity is being marketed at a 7.0% cap rate and below replacement cost at $200/SF. This housing facility’s present use is senior living/assisted living. There are 62 rooms ranging from 164 SF to 292 SF. Many rooms have two to three beds. The current tenant of 12 years is the fourth largest Hispanic nonprofit in the country with an operating budget of over $74 million. The tenant moved into the property in May of 2012 and has had 2% annual rent increases. In May of 2022 and 2023, the landlord executed a one-year extension with the tenant to give a future owner flexibility in negotiating their lease terms, changing the use of the property, or even for an owner/operator to buy the facility. They have signed a one-year lease extension until May 31st, 2024. This 74-bed facility is the model template facility for all future facilities. This site has over $500,000 of tenant improvements (paid for by the tenant over the last decade) and all mechanical systems have been replaced or repaired. The landlord is responsible for the roof and structure. The tenant is responsible for all other costs associated with the property. This property sits on 1.5 acres, improved with a 31,181 SF group home constructed in 1964 & 1984. The tenant has been in existence since 1987, is continuing to add additional locations throughout the United States, and is in a growth mode due to high demand. They maintain a high level of occupancy at or near 100%, with an average stay time of 30 to 60 days. A new roof was installed in 2021.