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: intensive outpatient behavioral healthcare, primary care, women’s services, pediatrics, lab and X-ray among others.
The Property is recently 100% leased to seven tenants, all on a NNN basis with limited Landlord responsibilities. The Weighted Average Lease Term (WALT) remaining is approximately 7.5 years, helped by a recent, early extension of Oschner Health’s spaces (~18% of the Property) and a newly executed, 10-year lease with Caresouth (~17% of the Property). Additionally, all of the leases feature annual rental escalations of 1.5%-3.0%.
Currently, Year 1 NOI is projected to be $749,871.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”).
Investment Highlights
HIGH-CALIBER TENANCY & STABLE CASHFLOW
- Tenant roster comprised of dominant national and regional healthcare providers
- WALT of just under 8 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 purchase price per square foot compared to replacement cost
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