100% Occupied Medical Office in
Boynton Beach, Florida
Invest in a Class A medical office building with strong demand drivers and experienced sponsorship.
Invest in Boynton BeachOffering Overview
Boynton Beach Medical Office
What to Know
This investment opportunity is a Class A, 100% occupied, four story medical office building located in Boynton Beach, Florida. The sponsor of this opportunity, OrbVest, is a 4 time repeat sponsor with EquityMultiple who have more than 30 years of specialized health care experience, raise equity globally, and facilitate investments in multi-tenanted real estate in the US healthcare industry with long term leases in place.
The business plan is to let approximately 25% of the traditional office roll to market, perform base building/tenant suite capital improvements, and then lease the vacancies to medical office users at higher rents.
Significant In-Place Cash Flow and Strong Returns
‣ The Property is being acquired at an attractive 6.0% going-in cap rate based on Year 1 NOI. NOI is forecasted to increase from $661K in Year 1 to $769k in Year 3.
Attractive Basis and Financing
‣ The purchase price represents a 31% discount to comparable sales within the submarket. The attractive all-in basis including closing, financing costs, capital expenditures and operating reserves is below replacement cost.
‣ The Sponsor has secured attractive financing with a three -year loan at a fixed interest rate of 4.25% and 18 months of interest only term. This equates to a debt service coverage ratio (DSCR) of 2.1x in Year 1 and 1.6x in Year 3.
Strong Tenancy with High Occupancy
‣ The Property is currently 100% occupied, a weighted average lease term of 4.9 years, and a healthy tenant mix including.
FAQs about Boynton Beach Medical Office
Can I see Asset Management updates from Q2 2023?
- As of Q2, the property was 100% occupied with no leases set to expire within 12 months. The Sponsor successfully extended Polo Dental and Maxim Healthcare's leases by 5 years and 3 years, respectively.
- QC Kinetics have successfully sub-let their space to a primary care doctor, and have made arrangements to bring their arrears current in installments over the next 6 months.
- The Sponsor distributed at a 6.4% gross annualized rate for Q2.
Where can I learn more about this asset class?
You can check out our blog, where we cover medical office buildings (MOB) in more depth.
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