Overview
Matthews™ is pleased to present a single-tenant, net-leased medical office building located in Vineland, New Jersey. The property is occupied by Penn Medicine, a major academic health system comprising six acute-care hospitals across Pennsylvania and New Jersey, along with hundreds of outpatient clinics and facilities spanning 27+ counties throughout the region. Penn Medicine utilizes this location to operate its cardiology practice, offering specialized services including heart and vascular care, cardiac arrhythmia care, heart valve disease treatment, heart failure care, interventional cardiology, and more.
The tenant is under a NNN lease structure with 2.75% annual rental escalations and over 6 years of remaining term. Strategically positioned just off NJ Route 55 along Chestnut Avenue, the property is less than five miles from Inspira Medical Center Vineland. Additionally, the surrounding area boasts strong demographics, with average household income exceeding $100k within a five-mile radius.
Investment Highlights
- Institutional Health System Tenancy: The property is leased to Penn Medicine, a premier academic health system comprising six acute-care hospitals and an extensive outpatient network spanning 27+ counties across Pennsylvania and New Jersey. The tenant’s institutional backing and regional scale provide a strong credit profile and operational reliability.
- Triple Net (NNN) Lease: The lease is structured on a NNN basis, placing taxes, insurance, and maintenance responsibilities on the tenant. This offers investors a stable, passive income stream with minimal landlord involvement, ideal for those seeking long-term, low-touch investments.
- Contractual Rent Growth: The lease includes fixed 2.75% annual rental escalations, delivering predictable income growth and serving as a natural hedge against inflation in both the near and long term.
- Affluent Surrounding Demographics: The property is situated in a high-income area, with average household incomes exceeding $100k within a five-mile radius. This favorable demographic profile supports continued demand for high-quality outpatient healthcare services.
- Strategic Location with Proximity to Major Healthcare Hub: Located along Chestnut Avenue just off NJ Route 55, the site benefits from exceptional regional accessibility. It is situated less than five miles from Inspira Medical Center Vineland, a major regional hospital, enhancing patient referral potential and clinical synergies.
- High-Quality, Professionally Maintained Facility: The building presents in strong physical condition, with well-maintained systems and a clean, modern appearance. These real estate fundamentals support tenant retention.
- Essential, High-Demand Medical Use: The tenant operates a cardiology practice at this location—an essential and resilient medical specialty projected to grow at a compound annual growth rate (CAGR) of 7.9% from 2024 through 2033. This use supports long-term occupancy and relevance within the healthcare ecosystem.
- Recently Executed Long-Term Lease: In 2024, the tenant executed a new eight-year lease, signaling their long-term commitment to the location and providing secure, predictable cash flow through the initial lease term.
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