Jones Lang LaSalle Americas, Inc. ("JLL") is pleased to offer for sale the fee simple interest in the 23,934-square-foot Utah Surgical Center Medical Office Building ("Utah Surgical" or "the Property") in an infill Salt Lake City-Murray Metropolitan Statistical Area (“Salt Lake City MSA”) location in West Valley City, Utah. The medical office building is 100 percent occupied by two tenants and features a four-OR ambulatory surgery center (“ASC”) operated by Wasatch Front Surgery Center, LLC (“Utah Surgical Center” or “USC”), a joint venture between HCA-owned Hospital Corporation of Utah and physicians that are in large part affiliated with MountainStar Healthcare, a division of HCA, or Granger Medical Clinic. HCA, rated BB+ by Fitch Ratings, is the largest health system in the United States with 182 hospitals and $48B of net patient revenue in 2022. Granger Medical Clinic (“Granger”) is one of the largest independent, physician-owned medical clinic groups in Utah with over 170 physicians across 28 locations including their newly constructed flagship location just around the corner in West Valley City.
Strategically located 10 miles southwest of the Salt Lake City CBD, the Property was originally a build-to-suit for USC completed in 2002 and features two tenants with 3.4 years of average remaining lease term. Since inception, the Property has been anchored by USC who currently occupies 81 percent (19,327 square feet) of the building’s rentable square feet with the building’s remaining 19 percent occupied by Summit Foot and Ankle (“Summit”), a podiatry physician group with 14 locations across Utah.
The investment offers desirable in-place yield with attractive 3.0 percent annual rent escalations from both tenants. The offering is an exceptional opportunity to acquire a medical office building with an ASC operated by the largest health system in the United States and with many physician partners that are affiliated with one of Salt Lake City’s largest physician groups. The building features fee simple ownership and is available free and clear of debt.
- 23,934-square-foot medical office building with a profitable high volume ASC operated by HCA, the largest health system in the United States
- Desirable in-place cash yield from two tenants with 3.0 percent annual rent escalations
- 2002 construction with original tenant anchoring 81 percent the Property
- Robust referral base from the physician partners in the ASC joint venture, many of whom are affiliated with the one of the largest independent, physician-owned medical clinic groups in Utah
- The Property is the only ASC in West Valley City with the closest ASC located 6.2 miles northeast in Salt Lake City
- Salt Lake City MSA is the 46th largest MSA with 1.3 million residents and is an economic, cultural, and financial hub of the Rocky Mountains
- Fee simple interest, free and clear of debt