$17.3MM Senior Care Loans
US - Murfreesboro, TN
HK$135,606,000 | 100,959 sf
Jones Lang LaSalle Americas, Inc. (“JLL”) is pleased to present to qualified investors an opportunity to acquire Riverside Park Plaza (“RPP” or “Property”), a medical office building located in the heart of Minneapolis, MN, within an opportunity zone, on campus and physically connected via underground tunnel to the 622 bed M Health Fairview and Masonic Children’s Hospital. RPP is 100% leased and anchored by University of Minnesota Fairview (“U of MN Fairview”) (Moody’s: Baa1), one of the highest profile health systems and private employers in the state of Minnesota. M Health Fairview or affiliates lease almost 80% of RPP and provide an array of services including rheumatology, ophthalmology, audiology, pediatrics, dentistry, among others. The remaining space in the Property is leased to Augsburg University, utilized as a physician assistant training center and other healthcare related functions.
The Property is located on the western side of the Mississippi River and immediately adjacent to the east of downtown Minneapolis. In addition to being on the campus of M Health Fairview and Masonic Children’s, the Property is also on the campus of the University of Minnesota Twin Cities home to more than 80,000 active students and faculty, boasting world class education including in research and health sciences. The Property is also adjacent to Augsburg University. The immediate area is densely populated and projected to grow in excess of 75% faster than the national average over the next 5 years. The Minneapolis MSA is not only experiencing significant population growth, but also employment – the MSA led the way in job creation over the past 12 months among major midwestern MSAs, tripling that of Chicago’s total.
Current ownership has invested almost $3 million into capital improvements to modernize the Property, including a full exterior reskin, since its acquisition in 2017. RPP produces approximately $1.4 million of net operating income with an average weighted lease term of 5.3 years. The Property offers investors the potential to acquire mission-critical real estate housing a world-class health system at an extremely attractive basis in relation to replacement cost.