Overview
CBRE’s U.S. Healthcare Capital Markets Group is pleased to exclusively offer the opportunity to acquire the Meritus Health Pulmonary Consultants MOB (the “Property”) located in Hagerstown, MD. The fee simple, single-tenant medical office building is 100% leased and occupied by Meritus Health (Fitch ‘A’), Western Maryland’s largest health care provider with nearly 3,000 employees, 500 medical staff members, 240 colunteers, serving a patient base of 200,000.
The Meritus Health Pulmonary Consultants offer the full suite of pulmonary care through their five physicians and three certified registered nurse practitioners using the Sleep Lab on the first floor and the Pulmonary Rehabilitation on the lower level. The Property includes the most up-to-date technology available in pulmonology and sleep medicine to treat a variety of pulmonary diseases and sleep issues including the diagnosis and treatment of asthma, COPD, bronchitis, pneumonia, emphysema, lung cancer, lung fibrosis, snoring, sleep apnea, narcolepsy, and various other breathing-sleep disorders. The sleep lab at the Property offers a leading-edge monitoring system, allowing technicians to monitor a wide range of physiological changes over the course of a patient's sleep study, including changes in brain waves, oxygen levels, respitory effort, limb movement and carbon dioxide output. The sleep lab is fully accredited by American Academy of Sleep Medicine (AASM).
In 2021, Pulmonary Consultants & The Sleep-Breathing Disorders Center united with Meritus Health, forming Meritus Health Pulmonary Consultants. The merger created a seamless integration of pulmonology, sleep medicine, and other healthcare services within the Meritus Health system. The strategic alliance was designed to meet the increasing healthcare needs of the region and provide comprehensive care to Maryland’s fastest-growing population.
Meritus Health delivers specialized medical care across Western Maryland, Southern Pennsylvania, and the Eastern Panhandle of West Virginia. The health system provides strong support to the Property and tenant by offering access to a large patient population and facilitating specialty referrals within its comprehensive healthcare network.
Additional Offerings In This Portfolio |
Investment Highlights
- NNN Lease Structure - The NNN lease provides investors with limited exposure to operating expenses, and predictable and growing cash flows.
- Scheduled Rent Escalations - The lease offers 2.0% annual rent escalations providing strong NOI growth throughout the term of the lease.
- Corporate Guaranty - The lease is guaranteed by Meritus Medical Center, Inc which is the sole member of the obligated group of Meritus Health (Fitch ‘A’), the largest healthcare provider in the tri-state region. Fitch’s rating reflect “Meritus’ robust market share in a state with predictable revenue streams under Maryland’s Global Budget Revenue (GBR) reimbursement methodology.”
- Maryland’s Fastest Growing Metropolitan Area - Since 2008, the Hagerstown metropolitan statistical area has been the fastest growing MSA in Maryland, according to data from the U.S. Census Bureau. The MSA is expected to grow by 3.6% over the next five years, which is 3.3x the state average and 1.9x the national average, and the MSA’s 65+ population is expected to grow by 15.4% over the next 4 years, compared to the state average of 14.6% and the national average of 13.5%.
- Strong Referral Network - The physicians and patients alike benefit from being a part of the Meritus Health network, consisting of more than 3,000 employees, 500 medical staff members, 240 volunteers, serving Western Maryland, Southern Pennsylvania and the Eastern Panhandle of West Virginia.
- High Performing Specialty Clinic - Best-in-class pulmonary and sleep medicine care, treating asthma, COPD, bronchitis, pneumonia, emphysema, lung cancer, lung fibrosis, snoring, sleep apnea, narcolepsy, and various other breathing-sleep disorders.
- Mission Critical Facility - A western Maryland-based health network founded in 1905, Meritus Health comprises more than 20 medical practices and has grown to be the largest employer in Washington County. Meritus Health Pulmonary Consultants is the leading pulmonary care and sleep medicine provider in the area and includes a sleep lab fully accredited by American Academy of Sleep Medicine (AASM).
Photo Gallery
Investment Contacts
