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1325 Wolf Park DrGermantown, TN 38138
The Conrad Pearson Clinic Urology MOB
Asset ClassHealthcare Facility, Office
Weighted Average Lease Term12 Years
Cap Rate: 6.23%Net Operating Income: $1.74 MillionWeighted Average Lease Term: 12 YearsAccess Data Room
overview of deal

Overview

The building was purpose built for The Conrad Pearson Clinic. There are two leases – one for the clinical space and the other for the ASC. In total the property is 33,777 square feet situated on 4.59 Acres in the heart of Germantown, Tennessee. The Conrad Pearson Clinic is the largest Urology Practice in the Midsouth and the location being offered is their flagship facility. The entity rolls up to Cardinal Health through Urology Alliance/Specialty Alliance – details and additional information about the Conrad Pearson Clinic and their affiliations can be found in the attached. The ASC lease is a joint venture between The Conrad Pearson Clinic and Ambulatory Operations Inc. which is a wholly owned subsidiary of Methodist Healthcare.

 

In 2025, The Conrad Pearson Clinic had 70,000 patient visits across their three locations with approximately 85% of the visits occurring at the subject property. Designed by the leading physicians of The Conrad Pearson Clinic, the property has an idealistic layout for its use, housing all equipment necessary to run at optimal efficiency. This equipment includes a CT scanner, multiple ultrasound machines, plain radiography, urodynamic equipment, and a full lab with blood and urine testing, and infusion services. Last year there were 6,025 procedures at the surgery center which is comprised of 4 operating rooms, all of which have fluoroscopy. In addition to that, they also have a lithotripter (ESWL), two ultrasound machines, two lasers, and an operating microscope at the facility. This provides the ability to perform both endoscopic and open surgeries as well as brachytherapy for prostate cancer while working in conjunction with a radiologist. There are two additional procedure rooms in the surgery center where they perform endoscopic procedures and minor surgeries under local anesthesia.

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Investment Highlights

  • Long Term Leases with Annual Growth - Both Leases Feature Annual Rental Increases Throughout Term.
  • Triple Net Lease Structure - Tenant Fully Responsible for All Expenses Relating to the Property with Ability to Collect Reimbursement for Management and Operating Personnel.
  • Purpose Designed Construction - Designed and Constructed by The Conrad Pearson Clinic to Accommodate their Specific Needs while Providing a Streamlined Connection of their Clinical and Surgical Practices
  • Significant Growth within Urology Specialty - Increasing Incidence of Prostate Cancer and Other Urological Issues with Aging Population to Double in Next 25 years. Projected 10.33% Compounded Annual Growth Rate Through 2030.
  • Major Medical Industry in Memphis, Tennessee - Major Institutions Include: St. Jude Children's Research Hospital, Methodist Le Bonheur Healthcare, Baptist Memorial Health Care. These Systems Create a Large Healthcare Workforce, Large Patient Volumes, Clinical Research Opportunities and Demand for Healthcare Services and Suppliers. Healthcare and Life Science in Greater Memphis Compose One of the Largest Industry Clusters in the Region with 88,725 Employees, Accounting for 13% of the Regions Workforce.
  • High Patient Demand + Low Operating Costs - Provide Perfect Environment for Success. The Mid-South Region is Known as the Center of the Chronic Disease Belt which Contributes to Significant Healthcare Demand. Large Regional Population Base and Limited Access to Care in Rural Areas Drives High Patient Volumes. No State Income Tax and a Competitive Corporate Tax Rate Combined with a Cost of Living that is 12% Below the U.S. Average provides a Low-Cost Environment for Healthcare Businesses and Employees.
1325 Wolf Park DrGermantown, TN 38138

Exclusively Listed By:

Chris BiusoSenior Director Investments(813) 210-7741christopher.biuso@marcusmillichap.com
Spencer KochDirector Investments(330) 321-5081spencer.koch@marcusmillichap.com
Peter CardenAssociate Investments(609) 915-6291peter.carden@marcusmillichap.com
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