Ascend Plastic Surgery of Tuscaloosa Net Lease Sale_Property for Sale
Ascend Plastic Surgery of Tuscaloosa Net Lease Sale_Property for Sale
1847 Commons North Drive, Tuscaloosa, AL, 35406, US

Ascend Plastic Surgery of Tuscaloosa Net Lease Sale

Asset Description

JLL is pleased to offer the opportunity to acquire Plastic Surgery of Tuscaloosa, a single-tenant medical center located at 1847 Commons North Drive, Tuscaloosa, AL (“Property” or “Asset”). The Asset is leased to Ascend Plastic Surgery Partners MSO (“Ascend” or “Tenant”) on a net lease with 9.4 years of term remaining, 2.50% annual bumps and two, five-year renewal options.

The Asset serves as a plastic surgery center and medical spa, providing cosmetic surgery and skin care treatment to the surrounding area. The expert physicians at Plastic Surgery of Tuscaloosa are highly experienced and board-certified plastic surgeon with over 33 years of expertise. The center is a part of Ascend Plastic Surgery Partners, a partnership of established plastic surgeons founded by Sheridan Capital Partners in October 2023. Ascend has rapidly expanded, adding 7 new locations since April 2024. Ascend, who guarantees the lease, generates annual EBITDA of $12M and palatable leverage of 0.8x. The site is a strong performer and includes EBITDAR to rent coverage of nearly 3x.


The Property is based in Tuscaloosa, Alabama, a fast-growing metro and college town that grew by 2.7% from 2021 to 2022. Alabama is a high growth state due to its business-friendly environment--it boasts the lowest property tax rate in the country. The surrounding area has an average household income of $159K within a 3-mile radius, indicating a high level of affluence and providing a strong customer base for the tenant's operations. Additionally, the population within a 1-mile radius of the property has experienced significant growth, increasing by 38% since 2010, indicating a thriving and expanding market. The Asset is strategically located in a retail corridor, surrounded by national tenants such as Publix, McDonalds, and CVS, among others.

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Attributes

Asking price
£5,397,000
Cap rate
7.18%
Remaining lease term
9.2 years
Building area net
15,400 sf
Occupancy
100%
Year built
2008
Land area gross
1.4 acres

Media

Investment Highlights

FAST-GROWING PLASTIC SURGERY NETWORK WITH ESTABLISHED SURGEONS

  • Founded in October 2023 by Sheridan Capital Partners, Ascend Plastic Surgery is a collection of established surgeons across 5 fast-growing states
  • Ascend is dedicated to expanding its footprint through aggressive acquisition strategies and partnerships with reputable plastic surgery practices, adding 7 new locations since April 2024
  • Dr. Bunch, the head of Plastic Surgery of Tuscaloosa, is a highly experienced and board-certified plastic surgeon with over 33 years of experience


HIGH GROWTH, AFFLUENT COMMUNITY WITHIN A STRONG HEALTHCARE MARKET

  • The average household income in a 3-mile radius is $159K, demonstrating the affluence of the surrounding area, core to the Tenant’s operations
  • The population in the surrounding the 1-mile radius of the Property has grown by 38% since 2010
  • Tuscaloosa is home to DCH Regional Medical Center, Tuscaloosa Veterans Affairs Medical Center, and Northport Medical Center totaling 1,168 staffed beds


RAPIDLY GROWING HEALTHCARE SERVICES INDUSTRY

  • U.S. Healthcare industry is expected to grow at a CAGR of 5.5% from 2022 to 2028.
  • Accelerating outpatient care fundamentals where 74% of new outpatient medical construction is off-campus, the highest level on record.


LONG-TERM NET LEASE WITH ATTRACTIVE ANNUAL ESCALATORS

  • The lease has 9.4 years of term remaining with highly replicable contract rent, 2.50% annual rent escalations, and two, five-year extension options offers secured and growing long-term cash flow.


Ascend Plastic Surgery of Tuscaloosa Net Lease Sale 4_Property for Sale
Ascend Plastic Surgery of Tuscaloosa Net Lease Sale 4_Property for Sale

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Ascend Plastic Surgery of Tuscaloosa Net Lease Sale (0 Properties)

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Last updated
23 Jul 2024