$17.3MM Senior Care Loans
US - Murfreesboro, TN
SEK 187,149,000 | 9,379 m²
Jones Lang LaSalle Americas, Inc. (“JLL”) is pleased to present to qualified investors an opportunity to acquire Ironwood Medical Pavilion II (“Ironwood” or “Property”), a trophy, medical office building located in the Phoenix, Arizona metro and on the campus of Banner Ironwood Medical Center. Delivered in September 2019, Ironwood is 99% leased and anchored by Banner Health (“Banner”) (Fitch:
AA-), the highest profile health system and largest private employer in the state of Arizona. Banner or affiliates of Banner
lease a total of 58% of Ironwood and provide an array of services including an ASC, nephrology, rheumatology, neurology, and spine care. The remainder of the Property is leased to high-quality clinical physician groups with specialties such as cardiology , podiatry, dermatology, autism therapy, ENT, rheumatology, and OB/GYN. The average remaining lease term for all Ironwood tenants is 6.9 years.
Ironwood is situated in the Town of Queen Creek, Arizona. Queen Creek is a rapidly growing suburb of Phoenix that has seen a substantial influx of new residents, resulting in a population growth forecast of 1.94% annually over the next 5 years. For comparison, the population for the state of Arizona is forecasted to grow 0.65% annually over the same timeframe. In addition to rapid population growth, Queen Creek residents boast an average household income of $148,000, which exceeds the state of Arizona average by almost 60%. The momentum Queen Creek has seen translates exceptionally well for
healthcare, as Advisory Board has projected outpatient service demand to grow
65% over the next ten years.
Ironwood produces approximately $1.5 million in net operating income with upside
to generate additional cash flow through mark to market opportunities. The Property
provides investors with the ability to enter a high growth market and develop a
relationship with a world-class health system.