Overview
JLL is pleased to offer the opportunity to acquire The Surgery Center at Cranberry, a mission-critical single-tenant medical center located at 105 Brandt Drive in Cranberry Township, PA. The facility is led by its founder and highly trained, board-certified ophthalmologist, William Christie, MD, and houses a multi-specialty ophthalmology clinic with a dedicated surgery center that performs over 2,015 procedures annually.
The Asset is 100% leased to EyeSouth Partners (“EyeSouth” or the “Tenant”), one of the nation’s largest eyecare services providers and is operating on a 12-year absolute triple net lease with 8.8 years of term remaining, zero landlord responsibilities and two, five-year renewal options.
The Tenant’s medical practice benefits considerably from being steps to UPMC Passavant Medical Center’s campus and only four miles north from AHN Wexford Hospital. Located just 20 miles north of downtown Pittsburgh in the highly affluent township of Cranberry whose average household income is over $170,000, the Property is positioned in a dense healthcare and commercial corridor that accesses over 74,000 residents in a five-mile radius.
This unique opportunity offers investors the ability to acquire a mission-critical healthcare asset located in a fundamentally strong and growing trade area. The asset offers secure, long-term cash flow backed by a leading healthcare network and a local clinical practice with 20+ years of occupancy that is accredited through the American Association for Accreditation of Ambulatory Surgery Facilities (AAAASF).
Investment Highlights
NATIONAL HEALTHCARE NETWORK WITH PREMIER PRIVATE EQUITY SPONSOR
- EyeSouth’s affiliate network consists of 300+ physicians providing eye care services at over 170 locations throughout 12 states.
- Premier PE sponsorship that scaled the business by 285+ physicians and over 150 locations since its inception, fueling revenue growth of 49% since 2018 (10.3% CAGR).
MISSION-CRITICAL MEDICAL & SURGICAL CENTER
- 20+ years of successful occupancy and offers multi-specialty ophthalmology services with a dedicated surgery center that performs over 2,015 procedures annually.
- 1 of only 3 EyeSouth Surgery Centers in Pennsylvania, two of which are operated by the Property’s head ophthalmologist, Scott C. Christie, MD.
- Substantial clinical and surgical equipment and is accredited through the American Association for Accreditation of Ambulatory Surgery Facilities (AAAASF).
HIGH GROWTH MARKET WITH STRONG HEALTHCARE CONCENTRATION
- Local healthcare fundamentals are strong with 5.0% vacancy, and medical spending swelled to $325M in 2022.
- 22% population growth since 2010 with an aging population where residents 65 years or over account for 21% of the population in a 1-mile radius.
RAPIDLY GROWING HEALTHCARE SERVICES INDUSTRY
- U.S. Healthcare industry is expected to grow at a CAGR of 5.5% from 2022 to 2028.
- Accelerating outpatient care fundamentals where 74% of new outpatient medical construction is off-campus, the highest level on record.
OPTIMAL LONG-TERM NET LEASE WITH ZERO LANDLORD RESPONSIBILITIES
- 8.8 years of term remaining with highly replicable contract rent, 2.0% rent escalations annually, and two, five-year extension options offers secured and growing long-term cash flow with high likelihood of renewal.
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