All Forum Posts by: A.R Shakir

I need some help, there is a medical office guaranteed by large hospital (nearly a 700 million in revenue) for 20 years. Its a NNN ground lease for sale for 3.3 million with a 6% cap rate. The problem I have is it is in a small town of about 5 thousand people. My concern is that if this hospital leaves after 20 years there is no way this will be worth any thing.

I will put 50% down and will about about 5 % cash on cash

Any thoughts would be helpful!

I need some help, there is a medical office guaranteed by large hospital (nearly a 700 million in revenue) for 20 years. Its a NNN ground lease for sale for 3.3 million with a 6% cap rate. The problem I have is it is in a small town of about 5 thousand people. My concern is that if this hospital leaves after 20 years there is no way this will be worth any thing.

I will put 50% down and will about about 5 % cash on cash

Any thoughts would be helpful!

@ Jeff Kehl Thanks for the input!

 I am going to reach out to the realtor and see if they are open to negotiating the lease longer.

Hey guys thanks for the input.

The plan was cash, I am just scared because of the 5 years. The realtor stated that Banner Health that owns the locations probably will not re-negotiate the lease.

See link below

https://www.coldwellbankerhomes.com/az/gilbert/349...

I need some advice, there is a medical office building for sale, NNN, 1.4 million with 5.8% Cap and 3 year increase in rent per year with 5 years remaining. Its a pediatric office and has been there since 2006, the group was purchased by Banner Health(MD Anderson) and they have taken over the lease, and now the physicians are selling the building that was previously there own.

I find the location stellar but I am concerned about only a 5 year lease....Any thoughts on this?

I have never bought any NNN property before, and I was wondering what people feel about 17.5 year ground lease for McDonalds that is available at 5% cap rate?

Are these secure investments?