VINELAND, NJ—Stan Johnson Company has completed the sale of a 37,660 SF Vineland, NJ, medical property to Lexington Realty Trust for $19.1 million. Located at 1237 W. Sherman Ave. in Vineland, NJ, the property is two miles from New Jersey Route 55, along a heavy medical corridor 40 miles south of Philadelphia. The facility is leased to HealthSouth Rehabilitation Hospital of South Jersey and is guaranteed by HealthSouth Corporation, the largest owner and operator of inpatient rehabilitation hospitals in the United States.
Camille Renshaw, CCIM, and David Bailey of Stan Johnson Company's New York office represented the seller, a New Jersey medical developer, in this transaction. The property is under a 40 year lease with approximately 29 years remaining.
The sale boasted a +/-5.8% cap rate, based on 2014 NOI, Johnson Company says in a press release. The most compressed cap rate previously reported by CoStar for a rehabilitation hospital leased by a Healthsouth entity nationwide was +/-6.43%. That sale was for a hospital located in Everett, WA, and closed in 2003.
"The current demand for stabilized, quality real estate is much greater than the supply,” says Camille Renshaw. "Through an intense and competitive marketing effort to both 1031 exchange buyers and institutional purchasers, we were able to tap into that demand and deliver great pricing for our Seller."
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Steve Lubetkin
Steve Lubetkin is the New Jersey and Philadelphia editor for GlobeSt.com. He is currently filling in covering Chicago and Midwest markets until a new permanent editor is named. He previously filled in covering Atlanta. Steve’s journalism background includes print and broadcast reporting for NJ news organizations. His audio and video work for GlobeSt.com has been honored by the Garden State Journalists Association, and he has also been recognized for video by the New Jersey Chapter of the Society of Professional Journalists. He has produced audio podcasts on CRE topics for the NAR Commercial Division and the CCIM Institute. Steve has also served (from August 2017 to March 2018) as national broadcast news correspondent for CEOReport.com, a news website focused on practical advice for senior executives in small- and medium-sized companies. Steve also reports on-camera and covers conferences for NJSpotlight.com, a public policy news coverage website focused on New Jersey government and industry; and for clients of StateBroadcastNews.com, a division of The Lubetkin Media Companies LLC. Steve has been the computer columnist for the Jewish Community Voice of Southern New Jersey, since 1996. Steve is co-author, with Toronto-based podcasting pioneer Donna Papacosta, of the book, The Business of Podcasting: How to Take Your Podcasting Passion from the Personal to the Professional. You can email Steve at [email protected].
