Overview
Matthews™ is pleased to present the exclusive opportunity to acquire a mission-critical, Class A medical office asset 100% leased to Novant Health, one of the Southeast’s leading integrated healthcare systems. Headquartered in Winston-Salem, Novant Health operates a robust network of 19 hospitals and more than 900 care locations, supported by a workforce of approximately 40,000 employees. The 9,712-square-foot facility functions as an essential community healthcare hub, delivering high-demand family medicine and primary care services. Novant recently completed $300k of enhancements to the building’s interior (new flooring and paint) further demonstrating their commitment to this location.
The investment features a NNN lease structure with minimal landlord responsibilities and attractive 2.5% annual rent escalations. Originally constructed in 2007, the property benefits from a strong operating history and current lease term extending through March 2030, with two additional five-year renewal options. Tenant commitment is further reinforced by the property’s strategic downtown location, positioned three miles from Novant Health Medical Park Hospital and five miles from the flagship 921-bed Novant Health Forsyth Medical Center. The site offers immediate access to major transportation corridors, including I-40 and U.S. Routes 421 and 52, and is part of a mixed-use environment with shared parking.
Winston-Salem is undergoing a significant economic transformation, driven in part by the Innovation Quarter, which generates an estimated $2 billion in annual economic impact. Located within a high-growth medical corridor, the asset is well positioned to benefit from increasing outpatient demand, supported by a population in which nearly 15% of residents are aged 65 or older. This offering provides investors the opportunity to acquire a stabilized, healthcare-focused asset in a premier North Carolina market, backed by a nationally recognized tenant and a lease structure designed to deliver durable, long-term income growth.
Investment Highlights
- High-Caliber Health System Operator Novant Health is a leading integrated healthcare system headquartered in Winston-Salem, operating more than 900 locations including 19 hospitals and hundreds of outpatient facilities, physician clinics, urgent care centers, imaging, and pharmacy services across North Carolina and South Carolina, supported by over 40,000 team members serving millions of patients annually.
- Passive NNN Lease Structure The property is leased under a triple-net (NNN) lease, with the tenant responsible for operating expenses, providing investors with passive ownership and minimal landlord responsibilities.
- Class A Outpatient Facility Constructed in 2007, the 9,712 square foot, single-tenant medical building is a modern outpatient asset designed to support long-term clinical operations.
- Attractive Price Per Square Foot Investors have the opportunity to acquire this Class A facility at $331 per square foot, significantly below the cost it would take to replace this type of facility.
- Tenant Investment Novant recently completed $300k of enhancements to the building’s interior (new flooring and paint) demonstrating their commitment to this location.
- Attractive Rent Growth The lease features 2.5% annual rental escalations, providing consistent income growth and a hedge against inflation.
- Strategic Urban In-Fill Location The property is centrally located in downtown Winston-Salem, approximately three (3) miles east of the Novant Health Medical Park Hospital, with convenient access to major transportation corridors including I-40, U.S. Routes 421 and 52.
- Strong Demographic Fundamentals Winston-Salem has a population of approximately 256,000, with nearly 15% of residents aged 65 or older, supporting sustained demand for outpatient medical services.
- Favorable Depreciation This opportunity offers investors the ability to capture more favorable depreciation and tax savings advantages through a cost segregation study. *Investors to confirm with their own CPA.
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