Let's talk urgent care centers!

[John McKee]

Tell me what you know about these single buildings that are triple net in nature.  They seem to be on busy road and are popping up everywhere.  Who has experience and sales data for these type of investments?

[Joel Owens]

The lenders want to see investment grade credit. Some tend to be large hospital off shoots or get bought out by Walgreens. Those can be a win when you get a high cap rate and later get Walgreens credit backing the lease for some cap rate compression on the exit.

Some lenders will consider large private groups that have strong financials. If it's a single doc office or a local brand with maybe 8 to 10 locations most national NNN lenders pass. Those tend to sell all cash or a local lender to do the deal but at not so great terms.

Hardest thing with medical buildings is to get the HELP. Not enough doctors to go around as many are retiring. The new docs out of school want to party some and work minimal hours and enjoy life after many years of schooling. They do not want really long hours with serious long term commitments out of the gate ( at least most do not ). So finding workers is the key to a locations success often. I have lots of doctors that are clients and buy NNN to own directly with me and we talk shop about the medical industry often.