Overview
Jones Lang LaSalle Americas, Inc. (“JLL”) is pleased to present qualified investors with the opportunityto acquire the fee simple interest in 104 and 108 Delancey Street (the Properties or “Portfolio”), two interconnected medical outpatient buildings totaling 30,900 rentable square feet in one of New York City’s most severely undersupplied medical markets - the Lower East Side. The Properties are 100% occupied by Beth Israel Medical Center, a subsidiary of the Mount Sinai Health System (Fitch: BBB), through two leases guarantied by The Mount Sinai Hospital that average 11.6 years of remaining term and 5.01% average contractual annual rent increases.
As part of the offering, investors receive exposure to secure in-place financials from an elite investmentgrade credit health system. The Properties are offered with the option to assume $16.5M of existing debtat an attractive 3.34% interest-only rate.
Investment Highlights
Investment-Grade Credit With Long-Term Cash Flow Certainty: The Properties are 100% leased with 11.55 years of average remaining term, guaranteed by The Mount Sinai Hospital (Fitch: BBB), a globally acclaimed institution that provides investors with institutional-quality counterparty risk.
Durable, Predictable Cash Flow With Imbedded Upside: The Properties’ leases average 5.01% annual base rent escalations, providing built-in income growth uncommon among comparable assets leased to investment-grade tenants.
Attractive Assumable Financing: Purchasers can access $16.5M of assumable debt at a 3.34% fixed interest rate through early February, 2031, offering meaningful positive leverage and day-one cash flow enhancement.
Purpose-Built Medical Facility Serving Embedded Community Demand: Tenant has invested over $3.5M in the Properties’ hospital-grade buildouts to ensure a best-in-class patient experience for the Properties’ multi-specialty programming. The asset’s Class A finishes and location within an rapidly growing supply-constrained corridor will permit the Properties to capture the Lower East Side’s rapidly-increasing outpatient demand, expected to grow 10% over the next five years per Advisory Board.
Prime Position In One Of Manhattan’s Fastest-Growing Neighborhoods: Located in the heart of Essex Crossing, a 1.9-million-SF mixed-use development in Manhattan’s Lower East Side that permits the Properties to benefit from immediate proximity to over 1,100 new residential units and high-traffic retail anchors.
Future Vertical Expansion Opportunity: The Properties’ contiguous parcels offer approximately 15,000 square feet of air rights to incoming ownership that Purchasers can choose to develop or transfer to third parties.
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