CENTRAL CAROLINA GYNECOLOGY

INVESTMENT HIGHLIGHTS

Medical Office Building

• Healthcare real estate has been a highly sought-after investment as it tends to be more resistant to economic downturns than other asset classes. In an uncertain economic environment, investors are turning to medical office buildings like this to ensure their investment dollars receive stable returns.

High Year 1 Return

• Priced at an attractive cap rate of 8.42%, this investment allows for a potential new owner to have a high return on initial investment. This could be especially attractive to investors who are looking for a short-term investment with a high return.

Priced Below Replacement Cost

• At just $127.74 per square foot this property is priced far below replacement cost for a fully built out medical office. Medical offices require a higher cost of build out than normal offices due to increased electrical, plumbing, and structural specifications.

Central Carolina Gynecology and Aesthetics

• The tenant is backed by Central Carolina Hospital, 137-bed acute care facility backed by Duke LifePoint Hospital. Central Carolina offers a range of medical, diagnostic, and surgical services. The emergency department alone sees over 38,000 patients a year. A highly valuable referral source is created from this proximity & causes an increased demand for this location.

Attractive 2% Annual Increases

• The anchor tenant has 2% rental increases each year, a great hedge against inflation for a future investor.

Raleigh-Durham Proximity

• The property is located less than an hour from the Research Triangle, Duke University, University of North Carolina and NC State University. The proximity to these organizations gives Sanford Dermatology access to information and technology regarding medical advancements. It also increases the likelihood of recruiting new physicians as the practice grows.

Recent Practice Partnership

• Central Carolina Hospital partnered with the former Advanced Care for Women. The practice is well established in Sanford and has been serving the community for over 25 years.

Women’s Health Economic Impact

• The market for Obstetricians and Gynecologists is estimated at nearly 20 Billion in the US. Women’s health providers are in increasingly short supply as fewer residents and medical students are moving into this space than historically average.

Sanford, NC – Industry

• Bharat Forge, a global industrial manufacturers, identified Sanford as the newest North American facility location and has agreed to stay in NC for the next 12 years at minimum. This could lead to a $787.1 million economic impact. Kyowa Kirin, a Japanese pharmaceutical company also announced a new factory in Sanford.