Overview
Matthews™ is pleased to present an exceptional investment opportunity: a recently redeveloped medical office building (MOB) located in Hudson, North Carolina. The property is leased to Hopscotch Primary Care, a rapidly growing primary care operator that currently manages 11 clinics across Western North Carolina, serving over 15,000 patients. This property is secured by a long-term NNN lease with approximately 14 years remaining, ensuring stable and predictable cash flow for investors. The lease includes annual rental escalations, with an 8% increase in Year 4, followed by 2.5% increases annually thereafter, offering steady income growth and a great hedge against inflation.
Hopscotch Primary Care, which specializes in Medicare and Medicaid services, is dedicated to providing accessible, value-based care to rural communities. The company has seen significant growth, securing a $50 million Series C funding round and positioning itself for continued expansion. This growth aligns with the overall favorable conditions in the primary care market, which is valued at approximately $290.91 billion in 2025 and is projected to reach $357.86 billion by 2030, growing at a compound annual growth rate (CAGR) of 4.23%.
The property was recently redeveloped in 2024, with approximately $1.58 million in improvements, including new HVAC systems, parking lot resealing and striping, and landscaping and plumbing upgrades, ensuring the building is in excellent condition for long-term tenant use.
With a strong long-term lease in place, built-in rent escalations, a growing operator, and a recession-resistant asset class, this investment offers a compelling opportunity for steady income and long-term capital appreciation.
Investment Highlights
- Long-Term Lease: The property is secured by a long-term lease with approximately 14 years remaining, providing stable and predictable cash flow for investors. This extended term offers a reliable tenant commitment, enhancing investment security and minimizing vacancy risk for the long haul.
- Triple Net Lease: The property is secured by a NNN lease, providing investors with a hands-off, low-risk investment where the tenant is responsible for taxes, insurance, and maintenance. This structure ensures predictable, passive income with minimal landlord responsibilities.
- Annual Escalators: The lease structure features strong built-in rental escalations, with an 8% increase in Year 4, followed by 2.5% annual increases thereafter, ensuring steady income growth and long-term value appreciation for investors.
- Growing Operator: Founded in 2021, Hopscotch Primary Care is rapidly expanding its footprint, now operating 11 clinics serving over 15,000 patients in Western North Carolina. With a recent $50 million Series C funding round and the appointment of CEO Tim Gronniger in November 2024, the company is poised for continued growth in delivering advanced primary care to rural communities.
- Recession-Resistant Asset Class: Medical real estate is a recession-resistant asset class, driven by the essential nature of healthcare services and consistent patient demand regardless of economic cycles.
- Growing Industry: As of 2025, the U.S. primary care market is valued at approximately $290.91 billion and is projected to reach around $357.86 billion by 2030, growing at a compound annual growth rate (CAGR) of 4.23%.
- Recent Redevelopment: The property recently underwent renovation in 2024 with ownership investing approximately $1.58MM to improve the property. The improvements include new HVAC systems, parking lot reseal and striping, new landscaping, new plumbing fixtures and water heaters, and more.
- Favorable Medicaid Market: North Carolina’s Medicaid expansion, effective December 2023, is increasing patient access and driving demand for healthcare services, particularly in outpatient and specialty care settings. With a well-established managed care system and rising reimbursement rates, the state’s evolving Medicaid landscape enhances the stability and growth potential of medical office investments.
Photo Gallery
