Spend 3 million to buy a 23 million dollar Surgical Center.
No broker fee
Listing ID
16337341
Asking Price
$22,000,000
Operatories
15 Ops
Lot Size
50,000 sqft
Stories
4 Floors
Details
Invest $3 Million Now to Acquire a $20 Million Surgical Center
438 W 51st Street
The owner rebuilt this building and spent millions converting it into a medical office building and surgery center. A recent price reduction is designed to facilitate a quick closing.
A $20,000,000 purchase price yields a 6.04% cap rate on the in-place NOI, with substantial upside from the available vacant space.
Financing: Valley is the lender. The current loan totals $17,600,000 at 5.50% interest, maturing in May 2043 with a 5-year adjustment cycle. The next adjustment is reportedly 2028. The loan appears to be assumable by a qualified purchaser, subject to lender approval.
The surgery center and a dental tenant have tenancy restrictions within the building.
Leasing terms: Asking rent is $55 per SF plus electric, with a pro forma based on $50.00 per SF. This is a new medical building; additional details follow:
- Lower level: Built-out dental suite of 1,761 RSF.
- Ground floor: 5,182 RSF. (Currently a physical therapy group is evaluating the space.)
- 2nd floor: 5,898 RSF total; back portion 4,010 RSF; front portion 1,888 RSF. Plan attached.
- 3rd floor: Back portion remaining 1,747 RSF; the other portion has recently been leased to a dentist.
Total combined Ground and 2nd Floor: 11,080 RSF.
- New construction – handicap accessible, with new elevators and Article 28 approved building.
- Surgery center on-site unaffiliated with any hospitals, focused on ortho, spine & pain-related surgeries.
- Seeking $55 per SF plus electric (separately metered).
- Landlord will deliver a white box.
- Tenant will build out its space to its specifications.
- In lieu of OPEX, there will be 3.0% annual rent escalations and a $5 per SF rent increase in year 6.
- Nine (9) months of free rent is being offered in lieu of TI.
- Term: 10 years or more.
- Listing Type: Office
- Listing Price: $22,000,000
- Building Lot Size: 50,000 SF
- Number of Operatories: 15
- Listing Location: New York, NY
Loan Payment Calculator
Disclaimer: These numbers are estimates. US Dental is not a financial institution and we will be connecting customers to institutions which are qualified to discuss finances.
Est. Monthly Payment
Debt Service Coverage Ratio (DSCR) measures the practice's ability to pay debt with cash flow. Lenders typically require >1.25x.
