MSO medical service organization investing

[Mostafa Koperly]

There is an opportunity to acquire a medical building ( owner is MD who sold business to a Hugo MSO two years ago and still working part time ) at 8 cap NNN lease. Lease expire in 5 yrs but I don't see a renewal option offered to the MSO group.

They bought this place 2 yrs ago. They are very big on east coast but started to expand into the west coast.

Also after searching more about them they bought over 10 more locations ( business only no RE) however they aren’t changing the name.

Does MSO tend to stay same location like DSO groups? My only thing is why they didn’t enforce a renewal option on their contract.

It’s in SoCal and not in a rural area and close to many regional hospitals like memorial and Kaiser.

It's on off MLS listing.

[Mostafa Koperly]

Quote from @Michael K Gallagher:

@Mostafa Koperly what is the underlying property asset like?  is it in a high visibility area?  part of a current medical campus?  is med basically its only use case for filling with new tenants?  What kind of exclusives in the area does the current tenant have?  

In my experience strictly med buildings are generally developed in the same way as part of a campus or off the path a bit from the main retail corridor, so it really is only suited for that use.  We do Urgent cares all over the county and get pitched med office spaces all the time, and none fit our profile for visibility, for our use at least, only because we follow a more "retail" modeled approach to site selection, given the business type.  

My point being, whats the plan for after the current tenant leaves?  whats other use cases, if any?  Those are going to be my biggest questions when looking for something like this on or off the market.

Thank you for the input. 
previous business owner and building owner has been practicing for a while and built this office for medical office ( receptionist and exam rooms ) with nice decorations. Building was built 2016 and it was named by the major of the city as one of the best cosmetically appealing medical offices. 

Now what will be the plan after they move out ( if they decide to) is probably lease to a medical corps too since the close proximity to the big hospital. It’s not like next to it but about 0.5 mile from memorial hospital.