Posted on: January 15, 2016
The MSR team is pleased to offer a new commercial real estate investment opportunity exclusively to our valued investors – VCA Animal Hospital.
The projected return on investment on this property is 22% per annum. Over a five year investment timeline, we expect the value of the property to increase by $2 Million. Click here to learn about investing in commercial real estate with us.
About the Investment Property
This Animal Hospital is located in St. Petersburg, Florida, and is operated by VCA, one of the largest providers of veterinary services in the US. The building was constructed in 1997 and completely remodeled in 2006-7. It offers 11 exam rooms and 56 parking spaces for hospital clients.
The property has exceptional visibility with 200-foot road frontage on 62nd Ave North, which is a 4-lane road with 20,000+ traffic count and a 45 MPH speed limit. The signalized intersection facilitates easy ingress and egress for the 250,000 people living within a 5 mile radius of the property.
See the building in this video:
- Building Size: 15,979 SF
- Property Size: 40,000 SF
- Property Type: Medical
- Property Subtype: Animal Hospital
- Property Use Type: Investment
- Cap Rate: 9%
- Triple-net-lease (NNN)
- NASDAQ listed tenant
- Long term lease until 2029
- Opportunity for significant value increase
- Located near busy road with exceptional visibility
The tenant, VCA/Antech , is one of the largest providers of veterinary services in the U.S. with more than 600 animal hospitals in 42 states across the US and 4 Canadian provinces in the VCA network. These hospitals are staffed by more than 3,500 fully qualified veterinarians, including over 400 board certified specialists. VCA animal hospitals provide a full range of medical and surgical services as well as specialized treatments.
VCA is listed on NASDAQ and reported total revenue of $1.92 Billion in 2014.
VCA Animal Hospital is currently valued below replacement cost, and the lease is projected to generate a Total Net Operating Income (NOI) of $306,615 in 2016 with annual rent escalations thereafter. Further opportunity exists to unlock value by leasing the 2,400 SF vacant space on the second floor.
The triple-net-lease (NNN) with VCA / Antech as tenant of this property provides for 100% of all maintenance, tenant improvements, and insurance.
Due to annual rent escalations, additional space available for rent, and capital appreciation in a recovering US economy, this property is an exceptional commercial real estate investment opportunity.
MSR Holdings specializes in profitable commercial real estate investment opportunities in the US. To receive more detailed information or to participate in this unique real estate investment opportunity, please contact us. Call us at 1-866-995-2929 ext.4 or via email at firstname.lastname@example.org.
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