Overview
Matthews™ Healthcare Division is pleased to present the opportunity to acquire a ±15,072 square foot, ambulatory surgery center and medical office building located at 5016 Gilmer Rd, Longview, TX. The property is 100% leased to Precision Spine Care, an eight-unit pain management clinic with locations in Texas and Georgia. This property serves as a de novo location as part of the tenant’s expansion plans and has recently undergone significant improvements to ready the property for the tenant’s use.
Precision Spine Care leases the property under two separates leases: i) one lease for their clinical operations and ii) one lease for their surgical operations. Both leases are NNN with 3% annual escalators and over 10 years of remaining term. In total, tenant has investment $1.9M to improve the property, demonstrating their dedication to this location. The clinical portion of the building is a corporate lease with Precision Spine Care which reports robust financials that can be shared with an executed NDA.
The property is situated in Longview, TX which has a population of over 120,000 people within a 10-mile radius. Longview, TX features favorable demographics with nearly 17% of their population being of the age 65 years or older – creating a sizeable patient base for the property.
Investment Highlights
Established Regional Operator: The property is operated by Precision Spine Care, which has eight locations across Texas and Georgia and specializes in interventional pain management services, reflecting its operational scale and established market presence.
Long-Term Lease Security: Both tenant leases have more than 10 years of remaining term, providing durable and predictable cash flow visibility through the next decade.
NNN Lease Structure: The leases are structured as triple-net (NNN), minimizing landlord responsibilities and reducing exposure to operating expense volatility.
Contractual 3% Annual Rent Increases: Each lease features 3% annual rental escalations, delivering consistent year-over-year cash flow growth and serving as a strong hedge against inflation.
Growing Pain Management Sector: The U.S. pain management market is projected to expand from $27.9 billion in 2024 to $38.5 billion by 2033 (3.7% CAGR), supporting long-term demand for the tenant’s services and reinforcing the defensive nature of the healthcare asset class.
Significant Build-to-Suit Investment: Tenant invested approximately $1.9M, reflecting substantial capital commitment and long-term dedication to the site.
Tax-Advantaged State – Texas: Texas is one of nine states with no personal income tax, creating a favorable tax environment for residents and business operators. According to U.S. Census data, Texas led the nation in net domestic migration in 2024, underscoring strong demographic momentum and long-term economic growth.
Accelerated Depreciation Potential: Given the significant capital invested in the facility buildout, investors may benefit from enhanced depreciation through a cost segregation study, potentially improving after-tax returns. Investors should consult their CPA to confirm applicability.
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