Pentagon Medical Building
PENTAGON MEDICAL BUILDING | 99 North Brice Road, Columbus OH
Acquisition Overview
ACQUISITION SUMMARY
Pentagon Medical Building is a three-story multi-tenant medical office building in Columbus, Ohio,
situated on 7.891 acres near the Mount Carmel East Hospital campus. The building contains
approximately 62,968 SF and is currently 98% leased to established medical practices through
NNN leases with a weighted average lease expiration in excess of 4.7 years. The building was
constructed in 2006.
PURCHASE PRICE: $11.1 M
The area is a high growth area and Mount Carmel East Hospital is addressing this growth with a major
renovation and expansion of their campus. The demographics, payor mix, and supply/demand of doctors are all favorable and indicators of a healthy medical office location. The proximity to the hospital
and rooftops should contribute to continued future demand of health-care users desiring to be near
the hospital and their patients.
AVERAGE REMAINING LEASE TERM: 4.7 years
This acquisition fits with Everest’s investment strategy focused on institutional-quality medical core
commercial properties, net-leased to creditworthy businesses.
ACQUISITION DATE: 06/22/16
PRICE PSF: $175
OCCUPANCY: 98.0%
NNN RENT: $15.08/SF
REGIONAL DEMOGRAPHICS
The property is located in Columbus, Ohio, approximately 13 miles east of the Columbus CBD.
The property has good regional access, located
within 1.5 miles of I-270 and 5 miles of I-70.
10-mile average household income was
$65,490, with an average age of 35.8 yeras.
Key Deal Highlights
•Close proximity to hospital anchor in growing established medical cluster and retail corridor.
• 98% Occupancy to specilist practices (Surgery Center, Sleep Center, Primary Care, Lab, Clinical
Research, Quest Lab, OBGYN, Allergy) with long average tenure and lease guarantees.
•Attractive Basis: Everest Medical Core Properties is acquiring Pentagon Medical Building for
$175/SF, which compares favorably to recent comparable sales of $272/SF.
•Below-market rents: At an average of $23/SF gross, Pentagon Medical’s current in-place rents
are 9.1% below its competitive set of $26.55/SF gross.
The population within the Pentagon Medical trade
area (687,670) with 1.1% annual growth, which is
superior to the local MSA and state averages.
Approximately 58% of the trade area’s population
has private insurance.
15.1% is without health insurance which compares favorably to the national average of 16.3%.
•Tight Submarket: The current submarket vacancy rates are as follows:
– Medical office buildings over 5,000 RSF within one mile of Mount Carmel East Hospital: 3.4%
– Columbus suburban medical office buildings over 5,000 RSF within one mile of a
hospital: 4.8%
99 North
Brice Road
– All metro Columbus medical office buildings: 7.2%
Highly Experienced Team
Everest offers over 100 years of combined Principal commercial real estate and finance experience
with major companies including AIG, ING Clarion, Avalon Bay, Accenture, Cole Capital, United Health
Group and Simon Property Group.
GOOGLE MAPS
Visit www.everestmcp.com or call 877-620-6411 ext. 207 for more information.
© 2016 EVEREST MEDICAL CORE PROPERTIES. CONFIDENTIAL. ALL RIGHTS RESERVED.