FRANCISCAN HEALTH CENTER

INVESTMENT HIGHLIGHTS

• VERY PASSIVE LEASE STRUCTURE
  There are minimal landlord responsibilities throughout the lease term, offering a passive investment for both local and national investors.
• $649 MILLION TRAIN LINE BETWEEN MICHIGAN CITY AND CHICAGO
  A newly constructed Double Track train line, costing $649 million, now links Michigan City to the South Shore Line passenger train service, enabling commuters to conveniently travel between Michigan City and Chicago. The project, undertaken by the commuter line, facilitates the addition of 14 weekday trains, decreases travel durations, and introduces new express service with limited stops. This revised schedule will commence on May 14th, 2024.
• STRATEGIC LOCATION
  The property is strategically located less than three miles from the Franciscan Health Michigan City hospital. This newly constructed facility opened in 2019 and features 123 beds, numerous outpatient services, advanced diagnostic imaging capabilities, and technologically advanced life-saving innovations.
• STABLE LONG-TERM INVESTMENT
  There are just under 5 years remaining on the lease with 2% annual increases and one, 5-year option to extend. This will provide the owner with guaranteed stability and revenue growth with a built in option to extend the lease even further into the future.
• INVESTMENT GRADE TENANCY
  Franciscan Health has a “AA” Fitch rating with over 20,000 employees and a number of nationally recognized Centers of Health Care Excellence. Established in Indiana in 1875, Franciscan remains a trusted leader in providing the highest quality of care.
• EXTENSIVE HEALTHCARE SYSTEM
  Franciscan Alliance is among the largest and most respected physician networks in the Midwest, with 12 hospital campuses, 850 primary and specialty care providers, and over 260 locations across Indiana and Illinois. Less than an hour’s drive away, Franciscan Health Crown Point Hospital opened to patients this year. This $200 million hospital is a testament to their standard of care, replacing the former 50-year-old location with state-of-the-art facilities.
• $100 MILLION PROJECT
  More than $100-million was invested into Michigan City in March 2024. The Franklin Project includes apartments, shopping, dining, and more, while further connecting Chicago and Michigan City. An estimated economic impact exceeding $150-million is anticipated over the first five years. The project will increase job opportunities in Michigan City and surrounding areas, easing the overall need to commute.
• UNIQUE DEVELOPMENT UNDERWAY
  Michigan City broke ground late 2023 on the SoLa Development — a 628,000 square-foot mixed use development project featuring two boutique hotels, residences, beachside restaurants, a zoo, and a new park. Expected to open Spring 2026, this advancement is set to generate $680 million in its first fifteen years. Annually, it is projected to produce $8.2 million in tax revenues, $10 million in tourism expenditures, as well as 800 new jobs (292 permanent) and $18.4 million gross wages earned.
• RETAIL CORRIDOR WITH ACCESS TO MAJOR HIGHWAYS
  Franklin Street boasts over 35,600 vehicles per day and is located off US-20 with close proximity to the I-94 interchange. This area has a strong retail presence and is surrounded by notable tenants such as Walmart and Meijer, as well as two neighborhood centers and Lighthouse Place Premium Outlets — an attractive outdoor mall, drawing shoppers from across the Midwest. The clinic is directly across the street from Ivy Tech Community College’s satellite location.
• MEDICAL OFFICE INVESTMENT
  Healthcare real estate is increasingly desirable due to its distinct capacity to prosper in tough economic climates. With robust demand, a steady tenant foundation, and resilience against economic slumps, it presents a coveted asset for investors targeting greater investment stability.