Everest Medical Core Properties Buys Fort Wright Medical Center

Fort Wright Medical Center

FORT WRIGHT, KY—Everest Medical Core Properties also known as WestEv Fort Wright LLC , has purchased Fort Wright Center , a single-story class B off-campus outpatient health center medical office building in Fort Wright, KY, which is part of the Cincinnati metropolitan area. Fort Wright Center contains approximately 117,000, of which 60% is leased to The Christ Hospital, an investment grade rates tenant, which has expanded twice and invested significant capital into their leased space, according to a release. The building, located off of I-71/75, was constructed in 1995 and underwent extensive renovation in 2012. According to a prepared statement, Fort Wright was purchased for its in-place cash flow and occupancy, “allowing for the upside of leasing the 35% currently vacant space.” WestEv Fort Wright LLC bought the current NOI at a 6.7% going-in cap rate and projects a 12% stabilized yield, the release states. David Lynn, PhD, CEO of Everest Medical Core Properties, says that “We are pleased to have developed a deep pipeline of off-market and limited market high-quality medical office buildings. Fort Wright Center is a great addition to our growing portfolio of institutional-quality medical commercial properties.” Other deal highlights include: •           WestEv Fort Wright, LLC is acquiring this property for $112 per square foot, which compares favorably to a recent comparable sales average close to $200 per square foot. •           Below-market rents: At an average just above $13 per square foot net, Fort Wright Center’s in-place rents are well below its competitive set. •           Leasing opportunity: The property was conservatively underwritten, with five years to complete lease-up and stabilization. o          Ideal tenant uses include urgent care, dialysis, general medicine, occupational therapy, rehabilitation, oral/plastic/orthopedic surgery, dermatology and wellness. o          Extensive renovation of the property was completed in 2012 and the property has ample parking to accommodate lease-up. Everest Medical Core Properties is an institutional real estate manager focusing on medical core real estate properties across the US. Earlier this year, the company formed a JV with an affiliate of Westport Capital Partners LLC to acquire high quality, class A and B medical office buildings, primarily in established strategic markets across the US. The Company plans to assemble an institutional quality portfolio through a series of one-off, single-asset, and portfolio purchases from medical office owners and hospital systems across the country.