Overview
Transwestern is pleased to offer a unique opportunity to acquire the single-tenant 3,480 rentable square foot medical outpatient building (the “Property” or “Akua San Diego”). The Class-B Property was substantially renovated for its current usage in 2023 and is located in San Diego, CA. The tenant, Akua Behavioral Health (“Akua”), has 11 locations across the state of California offering a range of behavioral health and addiction/detox services. This location provides multiple levels of care for adults 18 and over who are struggling with a mental health disorder, a substance use disorder, or a co-occurring disorder. This lease is corporate guaranteed by the parent entity, providing investors with a strong credit tenant.
The investment offers a net operating income of $288,777, with 18.25 years remaining on the initial 20-year lease. The NNN lease includes 3% annual increases to help investors hedge against inflation. This is a unique opportunity to acquire a medical outpatient building leased to a leading behavioral health operator in the demographically desirable market of San Diego. The building features fee simple ownership and is available free and clear of debt.
Akua continues to expand its footprint statewide, benefiting investors as more practices are integrated into the parent entity, providing a larger entity behind the corporate guaranty. This location is one of three in San Diego. The location offers excellent access to a dense population base located right off the I-5 Interstate and within 3 miles of the San Diego International Airport.
Investment Highlights
Desirable, stabilized off-campus medical outpatient building:
- Long-term leased investment with approximately 18.25 years remaining
- NNN lease providing investors a hands-off investment with no landlord responsibilities
- Guaranteed by the corporate entity, which includes 11 locations in California
- Akua is structured as an ESOP (Employee Stock Owned Company). This structure promotes company loyalty while ensuring the most vested and skilled employees get the most benefit in the growth of Akua.
- $288,777 of net income with annual 3% rental rate increases to help hedge inflation
- Fee simple ownership, free and clear of debt
- Ownership has invested over 850K into the building since the acquisition in 2022, showing their commitment to this facility for years to come.
- Highway visibility along the San Diego Fwy, which sees 175K vehicles per day (VPD)
Attractive location in San Diego, California
- Within a 3-mile radius of the Property, there exist 178,000 residents, with an average household income of $112,130 per year.
- San Diego has a population of approximately 1.4 million residents, making it the second-largest city in the state of California and the 8th largest city in the country.
- The Property is located just off the San Diego Freeway, which is the major north-south highway running from San Diego to Los Angeles along the coast. It is just 3 miles from the San Diego International Airport.
- The property is also located 6 miles from the Naval Base of San Diego, the largest US Navy base on the West Coast. Within a 20-minute drive, you can also reach Naval Air Station North, Naval Base Point, Coast Guard Sector, and Marine Corps Recruitment Depot, which are key US facilities that support military functions.
- San Diego is ranked among the top cities in the US to live, offering residents an incredible quality of life.
