NOVANT HEALTH - Capital Pacific...to promote a healthy outdoor lifestyle, connected via a network of...
Transcript of NOVANT HEALTH - Capital Pacific...to promote a healthy outdoor lifestyle, connected via a network of...
NOVANT HEALTHKERNERSVILLE, NC
SUBJECT PROPERTY
NOVANT HEALTH
5.75%CAP
1471 JAG BRANCH BOULEVARD, KERNERSVILLE, NC 27284
Brand new construction trophy asset
New 10-year NN lease
Situated in Smith Crossing, a brand new mixed-use development
with plans to feature 376 upscale apartments
Average household incomes exceed $83k in a 1-mile radius
Centrally located in the Piedmont Triad
Novant Health is the largest employer in Forsyth CountyThis information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.
LEASABLE SF11,668 SF
LEASE EXPIRATION9/26/2027
LEASE TYPENN
LAND AREA1.04 AC
PRICE PSF$415.13
YEAR BUILT2017
$4,843,743PRICE
*PRICE IS BASED ON RENT INCREASE IN YEAR TWO IN SEPTEMBER 2018
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Overview
THE OFFERING is a brand new construction, trophy Novant Health single-tenant building in Kernersville, North Carolina, in the heart of North Carolina’s exploding Triad Region. The subject property is on a new 10-year NN lease, featuring 2% annual rent increases with the landlord responsible for roof, structure, and repair of parking lot. Due to the high growth in the market, Novant Health instructed the developer to build them a facility at this location. The specializations in this facility include a Pediatric suite, a Family Practice suite, as well as a Neurology suite specializing in Chronic Headache. The company is the largest healthcare system in both North and South Carolina, with over 14 medical centers, 500 physician clinic locations, and more than 1,500 physicians. According to Winston-Salem Business Inc., Novant Health is the largest employer in Forsyth County.
The subject property, located just off I-40, is part of Smith Crossing: an under-construction, mixed-use development that will feature 376 upscale apartments, along with a Dairy Queen, AAA Climate Controlled Storage, and five additional parcels available for commercial development. The subject property is also in close proximity to a new state-of-the-art VA hospital, recently developed after moving from their previous Winston-Salem location.
JOE [email protected]: (415) 274-7394CA BRE# 01191110
Contact the team
NOVANT HEALTH HAS OVER 500 CLINIC LOCATIONS IN FOUR U.S. STATES
This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.
IN CONJUNCTION WITH NC LICENSED BROKER: Stuart MullenCommercial Real Estate Carolina, [email protected](704) 661-9800
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Investment Highlights
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BUSINESS SUMMARY
KEY 1-MILE 3-MILES 5-MILES
TOTAL 1-MILE 3-MILES 5-MILES
Businesses 56 812 2,045
Employees 442 9,712 24,555
Residential Population 4,008 28,985 64,089
THE SUBJECT PROPERTY is located in Kernersville, a town centrally located minutes from all three cities in the Piedmont Triad: Greensboro, Winston-Salem, and High Point. Well known in the south, the Triad has over 1.6 million residents and boasts nationally-recognized museums, restaurants, and theaters, and is also home to numerous universities, including Wake Forrest, University of North Carolina – Greensboro, University of North Carolina School of the Arts, and North Carolina Agricultural and Technical University.
Poised for tremendous growth, the town of Kernersville has strategically invested in sewer and transportation improvements in response to development demands. Caleb’s Creek is an under-construction multi-use development located just one mile from the subject property, with plans for approximately 2,333 units on a 937 acre development. Welden Village and Beeson Oaks are additional residential neighborhoods that will provide over 1,700 additional residential units to the area.
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Retail Market
KERNERSVILLE
ROAD
S MAIN
STREET
N MAIN
STREET
UNION C
ROSS ROAD
40
40
40
421
421421
66
66
66
KERNERSVILLE VA MEDICAL
CENTER NOVANT HEALTH
KERNERSVILLE MEDICAL CENTER
RB GLENN HIGH
SCHOOL
SOUTHEAST MIDDLE SCHOOL
CALEB’S CREEK
ELEMENTARY
BISHOP MCGUINESS CATHOLIC
HIGH SCHOOL
KERNERSVILLE ELEMENTARY
FOREST TRAIL
ACADEMY
JAG B
RANCH
BOULEVA
RD
GREENSBORO23 MINS
30,000 VPD
16,000VPD
56,000 VPD
22,000VPD
This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.
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SUBJECT PROPERTY
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Aerial
UNION CROSS ROAD
40
66
SMITH CROSSINGThe Reserve at Smith Crossing is an under construction residential community situated on an 84-acre mixed-use development. Located along Union Cross Road, the Reserve will feature376upscaleapartments,offeringa resort-style community including a pool, grilling area, outdoor lounge, private movie theater,fitnesscenter,andpetpark.Formoreinformation, click HERE.
WELDEN VILLAGEWelden Village is located on 385 acres and will be made up of three neighborhoods: Welden Center, Westridge, and Parkway District. Each neighborhood is designed to promote a healthy outdoor lifestyle, connected via a network of walkable streets, sidewalks, and pathways. It is planned to include approximately 1,700 residential units. For more information, click HERE.
BEESON OAKS DEVELOPMENTBeeson Oaks is a new development site featuring 49 approved one-level brick twin townhomes that start at $227,900. Each townhome features 3 bedrooms, 2 baths, 2 car garages, and a sun room. Each townhome is made with high quality construction and appliances. For more information, click HERE.
Submarket Overview
CALEB’S CREEKCaleb’s Creek is a newly approved 937-acre mixed-use development, that will include both residential and commercial properties. The development is planned for approximately 2,333 units, that will include a mixture of single-family homes, multi-family homes, maintenance-free homes, and a retirement community. For more information, click HERE.
This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.
SUBJECT PROPERTY
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SLATED FOR BIG BOX RETAILBIG BOXRETAIL(PUB-LIX)
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65 SINGLE FAMILY
HOMES PLANNED
NEWDAIRY QUEEN GRILL AND CHILL
AVAILABLEUPSCALE
APARTMENTS
ROAD UNDER CONSTRUCTION
OWNED BY QUALITY OIL
NOT BUILT
LOT 933,347 SF
LOT 167,044 SF
LOT 265,304 SF
LOT 376,204 SF
LOT 453,324 SF
LOT 551,912 SF
40
40
UNION C
ROSS R
OAD
JAG B
RANCH
BOULEVA
RD
54,000 VPD
JAG BRANCH BOULEVARD
SOLO
MA
N D
RIV
E
SMITH
CR
OSSIN
G D
RIV
E
Surrounding Aspects
7This site plan is a rendering that has been created based on sources we believe to be reliable. We make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.
LAND OWNED BY CRACKER BARREL
NOT BUILT
EXISTINGAPARTMENTS
SLATED FOR BIG BOX RETAIL
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Subject Property
PRICE $4,843,743 Price Per Square Foot: $415.13
Capitalization Rate: 5.75%
Total Rentable Area (SF): 11,668
STABILIZED INCOME PER SQUARE FOOTScheduled Rent $23.97 $279,682
Effective Gross Income $23.97 $279,682
LESS PER SQUARE FOOTTaxes NNN $0.00
Insurance NNN $0.00
Structural Reserve ($0.10) ($1,166.80)
Total Operating Expenses ($0.10) ($1,166.80)
EQUALS NET OPERATING INCOME $278,515
*Price is based on rent increase in Year Two in September 2018
This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. 9
Income & Expense
This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.
TENANT INFO LEASE TERMS RENT SUMMARY
TENANT NAME SQ. FT. CURRENT RENT
MONTHLY RENT
YEARLYRENT
MONTHLY RENT/FT
YEARLYRENT/FT
Novant Medical Group, Inc(DBA Novant Health Medical Group)
11,668 09/27/17 09/26/18 $274,198 $22,850 $274,198 $1.96 $23.50
09/27/18 09/26/19 $23,307 $279,682 $2.00 $23.97
09/27/19 09/26/20 $23,773 $285,276 $2.04 $24.45
09/27/20 09/26/21 $24,248 $290,981 $2.08 $24.94
09/27/21 09/26/22 $24,733 $296,801 $2.12 $25.44
09/27/22 09/26/23 $25,228 $302,737 $2.16 $25.95
09/27/23 09/26/24 $25,733 $308,792 $2.21 $26.46
09/27/24 09/26/25 $26,247 $314,967 $2.25 $26.99
09/27/25 09/26/26 $26,772 $321,267 $2.29 $27.53
09/27/26 09/26/27 $27,308 $327,692 $2.34 $28.08
TOTALS: 11,668 $274,198 $22,850 $274,198 $1.96 $23.50
* Price is based on rent increase in Year Two in September 2018
**At the end of the term, rent increases to 125% of last rent in effect unless a new lease is signed.
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Rent Roll
This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.
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Site PlanJA
G B
RA
NC
H B
OU
LEVAR
DSOLOMAN DRIVE
SMITH CROSSING DRIVE
55SPACES
11,686RENTABLE SF
1.04ACRES
AAA CLIMATECONTROLLED STORAGE
Triad’s First Amazon Fulfillment Center?
This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.
FIVE REASONS THIS COULD BE THE TRIAD’S FIRST AMAZON FULFILLMENT CENTER Triad Business Journal | May 29, 2018 Written by John Brasier
On Tuesday afternoon, Triad Business Journal broke the story that Seefried Construction and Development of Atlanta had submitted plans to the city of Kernersville to build a 1,016,041 square foot ware-house at Triad Business Park with business park owner Samet Corp. serving as the general contractor.
Jeff Hatling, community development director for Kernersville, said he did not know the identity of any prospective tenant. But there are rea-sons to believe that the building could be a future Amazon distribution center. First, the size of the building is almost identical to the several Amazon buildings developed by Seefried.
Second, the Triad notably lacks a sizable Amazon distribution hub de-spite its reputation as a logistics center. Third, the Triad is big enough to have a fulfillment facility. The Greensboro-Winston-Salem-High Point combined statistical area ranked No. 33 in the U.S. in 2017 census es-timates. The Greensboro-High Point MSA was ranked No. 2 for new and expanded corporate facilities in 2017 by Site Selection magazine among markets between 200,000 and 1 million in population.
Fourth, the plans submitted to the Kernersville included the designa-tion “GSO1.” According to one local source in the logistics industry and familiar with Amazon’s distribution network, Amazon typically labels fulfillment centers according to market and/or airport and the number of buildings it has in the particular market. Fifth, the tract of land for the planned fulfillment center is a stone’s throw from a FedEx Ground hub.
VIEW FULL ARTICLE
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PHYSICIAN CLINIC LOCATIONS IN GEORGIA, NORTH CAROLINA,SOUTH CAROLINA, AND VIRGINIA 500+
Novant Health is a not-for-profit integrated system of over 14 medical centers, 500 physician clinic locations, and more than 1,500 physicians. There are numerous outpatient surgery centers, medical plazas, rehabilitation programs, diagnostic imaging centers, and community health outreach programs. The medical facilities employ more than 26,000 team members and are found in four U.S. states: Georgia, North Carolina, South Carolina, and Virginia. Each clinic offers a variety of services including pediatrics, emergency, orthopedics, surgery, women’s health, cancer, heart and vascular, and more. In 2016, Novant Health reported a net income of $412.8 million on operating revenue of $4.34 billion. The not-for-profit health system also reported a community benefit of $725.5 million, including $122 million in financial assistance.
ABOUT NOVANT HEALTH
In 2016, Novant Health had the following:
•4,739,636PHYSICIANENCOUNTERS•538,911EMERGENCYDEPARTMENTVISITS•133,952SURGERIES•20,002BIRTHS•122,662INPATIENTDISCHARGES
COMPANY INFORMATION
This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. 13
Tenant Overview
POPULATION
1-MILE 3-MILES 5-MILES
2010 3,681 26,611 59,413
2017 4,008 28,985 64,089
2022 4,265 30,606 67,408
2017 HH INCOME
1-MILE 3-MILES 5-MILES
Average $83,857 $74,501 $69,633
Median $93,431 $83,498 $78,502
TOP EMPLOYERS IN FORSYTH COUNTY
EMPLOYER # OF EMPLOYEES
Novant Health 13,673
Wake Forest University BaptistMedical Center 12,563
Winston-Salem/Forsyth County Schools 7,000
BB&T 4,050
Wells Fargo Bank 3,700
KERNERSVILLE
WINSTON- SALEM (10MILES)
THE AVERAGE HOUSEHOLD INCOMEWITHINA1-MILERADIUS
IS OVER $83K
This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.
GREENSBORO(18MILES)
HIGH POINT(14MILES)
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Demographics
KERNERSVILLE, NORTH CAROLINA
KERNERSVILLE is a town in Forsyth County, North Carolina. The town is located in the northern part of North Carolina and can be accessed by US Route 421. Kernersville is located at the center of the Piedmont Triad metropolitan area and offers a small town atmosphere without compromising the amenities and opportunities of being near a metro area.
Through efforts to improve the town in the past few years, some of the rural farmland surrounding the town has been sold and turned into large middle-to-upper-class housing developments, and numerous large shopping centers have been built.
WINSTON-SALEM
The Piedmont Triad of North Carolina consists of Greensboro, Winston-Salem, and High Point and has a population of over 1.6 million residents. The opening of the
Piedmont Triad International Airport created a building boom along the Interstate 40 corridor, which led to two major research parks, an increase in jobs, and respected higher education. The region has an excellent transportation infrastructure and booming textile, furniture and tobacco industries. These thriving industries have
spawned the growth of new industries including distribution, biotechnology, health care, logistics, and transportation-related manufacturing.
This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.
PIEDMONTTRIAD
1,600,000+
PIEDMONT TRIAD POPULATION (ESTIMATED)
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Location Overview
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This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.
JOE CACCAMOJOHN ANDREINI
ZANDY SMITH
DAVE LUCAS
RICK SANNER JACK NAVARRA
CHRIS KOSTANECKIZEB RIPPLE CHRIS PETERS
JOE [email protected]: 415.274.7394CA BRE# 01191110
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