Acquisition Criteria
Core Assets
Deal Size: $10M to $50M
Building Sizes: 13,000 to 100,000 SF
Lease Type: NNN lease only
Location Requirement: Last-mile to residential homes; the buildings are surrounded by residential homes
Tenant: Mostly single tenant
Occupancy: 90% to 100%
Lease Expiry: 1 to 20 years (prefer short-term leases)
Property Attributes:
√ Primarily with one to three tenants in-place
√ Strong preference for tenants that are U.S. health systems having investment-grade credit ratings
√ New constructions (less than 10 years old)
√ Off-campus only
√ 5.0 parking spaces per every 1,000 SF
√ Built-to-suit assets (we buy from developers)
Value-Add
Deal Size: $5M to $12M
Building Sizes: 8,000 to 25,000 SF
Location Requirement: Retail centric locations such as town centers, strip centers, community health centers and ambulatory sites within the last-mile to residential homes
Tenant: Single or multi-tenants
Occupancy: 50% to 85%
Lease Expiry: 0.5 to 5.0 years (prefer short-term leases)
Property Attributes:
√ Below-market rent
√ Short-term leases
√ Exceptionally convenient and accessible locations
√ 5.0 parking spaces per every 1,000 SF
√ Buildings are 15-25 years old with the need for interior or exterior upgrades
√ Mixed tenancy including medical, retail and office tenants
√ Off-campus only
Renovate-to-Suit (Drugstores)
Deal Size: $1M to $3M
Building Sizes: 10,000 to 20,000 SF
Location Requirement: Former CVS, Walgreens, or Rite Aid
Special Situations:
1. 100% vacant,
2. The in-place tenant intends to vacate with a lease buyout for the remaining lease term,
3. Fully occupied drugstores trading at a 9.0% cap rate (flexible on remaining lease terms)
Property Attributes:
√ At major signalized intersections with exceptional visibility and accessibility
√ 5.0 parking spaces per every 1,000 SF
√ Acquisition price per SF below $150/SF
√ Within a 5-minute drive time, there are over 20,000 residents, and the median household income exceeds $85,000
√ Low crime rate
√ Near schools and retirement amenities