Investment Offering
Cleveland, TX - Cleveland Emergency Hospital
1017 S Travis Avenue | Cleveland, TX 77327
$20,443,000
Price7.75%
Cap Rate$1,584,333
NOI32,211
± SF Offering GLADescription
SRS National Net Lease Group is pleased to present the opportunity to acquire the fee simple interest (land & building ownership) in an absolute NNN leased, Cleveland Emergency Hospital, investment property located in Cleveland, TX (Houston MSA). Cleveland Emergency Hospital will execute a brand new 20-year lease at the close of escrow (sale leaseback) with 4 (5-year) option periods to extend. The guarantor, Emergency Hospitals Systems, LLC (EHS) have four locations and had gross patient revenues of $615 milllion for the year 2019. The lease will feature 10% rental increases every 5 years throughout the primary term and the option periods. The lease will be absolute NNN with zero landlord responsibilities, making it an ideal, management-free investment opportunity for an out of state investor.
Location
Cleveland Emergency Hospital is one of two hospitals serving the city of Cleveland, TX; both of which are operated by EHS. These two hospitals benefit from limited competition, as they are the only hospitals serving local communities; the next nearest hospital is 20+ miles away. Under the previous operator, the Cleveland Emergency Hospital was bankrupt in 2015. Subsequently, the principals of EHC acquired the license, upgraded the facilities, and reopened the hospital, which now provides convenient medical facilities and first-rate physicians for the local community. Capital improvements include refinished floors, an updated post-anesthesia care unit, and three additional exam rooms were added (for a total of 6). Since the successful reopening of the Cleveland Emergency Hospital, EHS purchased additional facilities and have expansion plans for their other locations.
Cleveland Emergency Hospital is located along S. Washing Ave, just off Interstate 69 with 29,300 cars passing by daily. More than 45,000 residents with an average household income of $63,300 support the 10-mile trade area.
Documents & Links
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 Offering Memorandum |  |  |
Contact
Matthew Mousavi
Sr Managing Principal & Co-Head of National Net Lease
949.698.1116949.698.1116[email protected]CA #: 01732226
Patrick Luther, CCIM
Sr Managing Principal & Co-Head of National Net Lease
949.698.1115949.698.1115[email protected]CA #: 01912215