Overview
As exclusive advisor to Ownership, Newmark is pleased to present for sale, the Howell Medical Plaza (the “Subject Property”, the “Medical Building”, the “Project” or the “Offering”). This Offering represents fee simple interest in a 100% leased, multi-tenant medical office building that is attached to the separately owned, Oceans Behavioral Healthcare Baton Rouge inpatient psychiatric hospital (the “Hospital”). The Property features a wide range of complimentary services including outpatient behavioral health, primary care, women’s services, pediatrics, lab and imaging among others.
The Property was acquired by Ownership in 2020 along with the adjacent Hospital building. At that time, the Medical Building was only 3% occupied and the hospital building was completely vacant. Following acquisition, Ownership completely renovated the hospital building for Oceans Healthcare (100% occupied) and subsequently shifted focus to backfilling the Subject Property. In that time, they have successfully increased occupancy in the Subject Property by 97% and made substantial improvements to the building and tenant spaces. The site’s current occupancy demonstrates tremendous leasing velocity and extremely strong demand for healthcare services at this location.
Investment Highlights
HIGH-CALIBER TENANCY & STABLE CASHFLOW
- Tenant roster comprised of dominant national and regional healthcare providers
- WALT of just under 7 years provides good long-term, contractual cashflow
- Built in rental escalations of 1.5%-3.0% annually provide reliable income growth
- NNN reimbursement structure for all tenants creates very passive investment
STRATEGIC AND DESIRABLE LOCATION FOR HEALTHCARE SERVICES
- Hospital and medical building taken from almost entirely vacant in 2020 to 100% occupied in 2025
- Tremendous leasing volume and velocity demonstrates high demand for location
- Proximity to inpatient hospital creates mission critical nature for several of the major outpatient behavioral uses
HIGH VISIBILITY AND ACCESSIBILITY
- Located directly East of Interstate 101 & North of US-190
- Directly South of the Baton Rouge Metropolitan Airport
- Surrounded by diverse mixture of retail, hospitality, educational medical and civic uses
- Southern University and A&M College located 5 minutes to the West
ATTRACTIVE YIELDS AND RENT ROLL
- Staggered lease expirations limit exposure to major rollover
- Low rents help ensure high tenant retention and little risk of replacing income
- Ability to acquire stabilized asset at attractive yields with room for upside
- Low price per square foot compared to replacement cost
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Sales Team
