deal image
10 E Spruce St, Frackville, PA 6649 Chrisphalt Dr, Bath, PA 502 S 2nd St, St Clair, PA 205 E Laurel Blvd, Pottsville, PA 4 S Greenview Rd, Schuylkill Haven, PA
Lehigh Valley Health Network
Asset ClassHealthcare Facility
# Buildings8
% Leased: 100%Net Operating Income: $1.39 MillionAccess Data Room
Lehigh Valley Health Network Portfolio Sale-Leaseback Monetization
overview of deal

Overview

Cushman & Wakefield’s Healthcare Capital Markets Team is pleased to present this rare health system portfolio monetization opportunity consisting of nine Lehigh Valley Healthcare Network (“LVHN”) facilities located throughout the Leigh Valley region of Pennsylvania. This opportunity includes options to acquire the entire portfolio or select properties individually, offering flexibility for various investment strategies. These assets represent a strategic monetization by LVHN.

 

LVHN, with its A2 Moody’s rating, reflects substantial financial stability. The 13-hospital system supported by a strategically implemented ambulatory strategy underscores a robust and reputable tenant base. The properties’ affiliation with a financially solid health system provides investors with a secure income stream.

 

The portfolio encompasses eight medical office buildings, covering a total area of approximately 79,267 square feet. It features a diverse range of clinical service lines across its properties, including internal medicine, imaging, addiction treatment, and primary care facilities. This investment is appealing to a wide range of investors, promising long-term contractual income stability through a Weighted Average Lease Term (WALT) of 14.29 years and income growth via annual rent escalations of 2.50%. Triple net (NNN) leases ensure clarity of net income for the owner in a competitive market.

 

Lehigh Valley Health Network has evolved into one of the nation’s most respected health networks, offering comprehensive care across 95 clinical specialties covering 10 counties in Eastern Pennsylvania. The network includes 13 hospital campuses, such as Lehigh Valley Hospital–Cedar Crest, which serves as a hub for many specialty services, including a highly regarded cancer center and the Lehigh Valley Reilly Children’s Hospital. Serving predominantly in eastern Pennsylvania, including Lehigh, Northampton, and surrounding counties, LVHN is committed to offering a broad spectrum of care, from primary to specialized services, ensuring comprehensive healthcare solutions for residents of these areas.

 

This opportunity offers a stable and secure income source, backed by a high-caliber tenant base and strategic features conducive to growth in the healthcare real estate sector.

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Investment Highlights

  • Lehigh Valley Health Network ("LVHN") Holds Moody's A2, Stable Credit Rating
  • 79,267 SF Portfolio
  • 14.29 Years of Portfolio WALT
  • New Triple Net (NNN) Leases | 2.50% Annual Increases

Portfolio Details

Details
8
79,267 SF Portfolio Size
100%
Occupancy
$1,394,864
Net Operating Income
2.50%
Annual Escalations
14.29
WALT (Years)
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10 E Spruce StFrackville, PA 17931

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