Overview
JLL is pleased to offer the opportunity to acquire three Village Medical assets, single-tenant primary care centers located at 3334 Hwy-155, Locust Grove, GA, 210 College St, McDonough, GA, and 545 Venture Ct, Monticello, GA (the “Properties” or “Assets”). The Assets are leased to Village Medical (the “Tenant”) and are operating on 10-year net leases with 7.6 years of term remaining, limited landlord responsibilities and one, five-year renewal option.
Village Medical, a subsidiary of VillageMD, has become a leading provider of value-based primary care services with over 520 locations across the US. They are dedicated to transforming healthcare by focusing on preventative primary care rather than solely treating chronic conditions, resulting in lower costs and improved health outcomes. VillageMD's growth has been impressive, with a 46% year-over-year increase in FY2023 and a 20% quarter-over-quarter increase in Q2 FY2024, reflecting same clinic growth through additional patients served.
The three clinics are located in the Southeast suburbs of the Atlanta MSA. The city is vibrant and diverse, with a population of over 6.3 million in the MSA and was the 3rd fastest-growing city in the US from 2022 – 2023. Within the Atlanta MSA, the Locust Grove and McDonough clinics have experienced significant population growth of 41.1% and 31.6%, respectively, within a 5-mile radius since 2010. Atlanta is known for its rich history, cultural landmarks, world-class museums, and sports teams. The city serves as a major transportation hub, attracting over 50 million visitors annually, and is home to 16 Fortune 500 companies, making it an economic powerhouse and a technology and innovation hub with a nickname "the Silicon Peach." Additionally, Atlanta has a thriving healthcare industry, renowned educational institutions, and offers a leading business-friendly environment.
Investment Highlights
NATIONAL HEALTHCARE NETWORK WITH STRONG PERFORMANCE
- Village Medical, a subsidiary of VillageMD, is a leading provider of value-based primary care services across the United States with over 520 locations.
- VillageMD’s revenue grew 46% year-over-year in FY2023 and 20% in Q2 FY2024 on a pro forma basis, reflecting same clinic growth and additional full-risk lives under management.
- Given strong demographic performance and commitment to the platform from primary care physicians in the market, VillageMD has shown commitment to these sites.
HIGH GROWTH MARKET WITH STRONG HEALTHCARE PRESENCE
- Atlanta had the 3rd fastest-growing population of all U.S. cities from 2022 to 2023.
- Georgia has been ranked as the best state to do business over the last seven years, enticingcompanies with its advantageous tax incentives and business-friendly atmosphere.
- Atlanta is home to Emory Healthcare, Georgia’s largest clinically integrated network, with 11 hospitals and 3,450 physicians.➢ The Locust Grove and McDonough clinics have each observed impressive population growth rates of 41.1% and 31.6% respectively, within a 5-mile radius since 2010.
RAPIDLY GROWING HEALTHCARE SERVICES INDUSTRY
- The U.S. Healthcare industry is expected to grow at a CAGR of 8.79% from 2024 to 2029.
- Accelerating outpatient care fundamentals where 74% of new outpatient medicalconstruction is off-campus, the highest level on record.
NET LEASES WITH FUTURE RENT GROWTH AND POTENTIAL MARK-TO-MARKET
- The three leases feature 7.6 years of term remaining with highly replicable contract rent, annual rent escalations beginning in 2027, and a five-year extension options at fair market rent offers secured and growing long-term cash flow.
Contacts
