Physicians Capital has announced the completion of the Company’s first acquisition – an emergency room and urgent care center operated by Riverview Health of Hamilton County, Indiana.
Riverview Health Property Acquisition
The Company has closed the acquisition of an 11,845 square-foot emergency room and urgent care center built in 2020 in Carmel, Indiana and operated by Riverview Health, a county owned hospital system. The purchase price of $12.25 million represents a 6.48% Cap Rate on Year 1 Net Operating Income.
The property is 100% occupied by a joint venture between Riverview Health and Intuitive Health, a national operator of emergency rooms. The lease is backed by Riverview Health and Hamilton County (AAA rating from S&P Global). The approx. 15 years of remaining lease term provides investors with a reliable stream of rental income from a hospital system employing more than 350 physicians and owned by Hamilton County, Indiana. Through an Absolute NNN lease, the tenant is directly responsible for all operating expenses and regularly occurring capital expenditures. The lease structure allows Physicians Capital to benefit from a consistent and reliable source of rental income without the risk of rising expenses or the need for high corporate overhead.
Carmel, Indiana is one of the most affluent cities in the state with average household incomes of $217,298 within a one-mile radius of the property.
“We are very pleased to announce the first acquisition for Physicians Capital” said Conrad Ivie, CEO of Physicians Capital. “We would like to express our appreciation to all our investors as well as Academy Bank who provided debt financing. This is an important first step in what we believe will be a disruptive physician-led approach to medical real estate ownership.”
