Tammy Saia Contact Info:
Phone: (630) 570-2226
Email: tsaia@marcusmillichap.com
Tami Andrew Contact Info:
Phone: (630) 570-2179
Email: tandrew@marcusmillichap.com
MOTIVATED SELLER - REDUCED
9% Cap-Medical Off Bldg, 50% Leased to Credit Tenant-CSL Plasma Since 1996: 50% Leased to Crossings Healthcare-PLUS Billboard Income - Corp. Guar. & Publicly Traded | Durable Income Stream | Low Cost Per SF | 2% Ann. Increases Crossings Medical
CSL Plasma & Crossing Health Care Medical Center
Three-Tenant Medical Building | 100-Percent Leased | 94.3% of Occupancy is Medical
Corporate Guarantee & Publicly Traded CSL Plasma Tenant (ACX:CSL) | Tenant Since 1996
Crossings Healthcare Federally Qualified Health Center | Durable Income Stream
Across from a Brand New $6 Million Crossing Healthcare Facility
50 Percent of Building has Two-Percent Increases on NNN Leases
Low Cost per Square Foot | Billboard on Property to Generate Extra Income
1025-1029 North Water Street, Decatur, IL 62523
OFF MARKET
Market Summary
Price $1,654,000
Cap Rate 9.00%
Net Operating Income $148,833
Price/Square Foot $77.67
Rentable Square Feet 21,294
Year Built / Renovated 1980 / 2017
Lot Size 0.76 Acres
Description
The property located at 1025-1029 North Water Street offers an investor an exceptional opportunity to purchase a manageable, stable asset that provides a generous cash flow. With only three tenants to manage, the asset is perfect for an investor looking for a more passive investment. The largest tenant CLS Plasma, which occupies roughly 50 percent of the rentable area, has been a tenant since 1996 and has a high demand with heavy traffic offering for the surrounding demographic. The three tenants that occupy the property are CSL Plasma, Crossing Healthcare, and Debbie's Gaming. Of the three tenants 94.3 percent is leased to medical tenants: CSL Plasma and Crossing Healthcare. The remaining square footage of 5.71 percent is leased to Debbie’s Video, Poker and Slots. Crossings Healthcare has expressed interest in leasing Debbie’s space, should the space become available.
Crossing Healthcare is a federally qualified health center that provides primary outpatient medical care to Macon and surrounding counties. Formerly known as Community Health Improvement Center (CHIC), the organization operates as a non-profit organization, comprised of medical professionals who are driven to provide quality care and service to the community. Providers at Crossing Healthcare are passionate about bringing the best care to those with the highest need. Additionally, Crossing Healthcare has expanded twice within the property. Once to add a methadone treatment clinic and then to add behavioral component to help patients handle drug addiction.
The going in cap rate on the current rents and in-place expenses and taxes is 10.14 percent. Upon sale there will most likely be a reassessment of the taxes which would yield a one-year proforma cap rate of roughly 8.36 percent. Assuming a 70 percent LTV 20-year amortizing loan, with no interest only period, and an interest rate of five percent, an investor can still expect a year-one cash yield of 9.39 percent.
Built in 1980's the property is fully occupied and has undergone improvements last year. Crossing Healthcare, whom occupies roughly 45 percent of the rentable area, underwent a $400,000 - $500,000 remodeling. Additionally, CSL Plasma is undergoing a remodel to add new cooling equipment for plasma draws. In addition to the tenant remodels, the roof is in very good condition, with one portion being brand new.