Multi-Tenant Medical Office Building Anchored by Children's Hospital of Philadelphia

Norristown, PA

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The Opportunity

Summary

  • Price $3,871,000
  • Cap Rate 7.00%
  • NOI $270,984
  • Building Size 17,973 SF
  • Parcel Size 1.50 Acres*
  • Year Built / Renovated 1991 / 2019
  • Avg. Remaining Lease Term: 3.8 Years

* Denotes an estimate

Forged Real Estate is pleased to exclusively offer the opportunity to acquire the fee simple interest in a multi-tenant medical office in a multi-tenant medical office property anchored by the Children's Hospital of Philadelphia and Jefferson Health., (the “Property” “Medical Office Building”) in Norristown, PA, a suburb of Philadelphia. The Children’s Hospital of Philadelphia (CHOP) is an investment-grade rated (Moody’s: A3 / S&P: A-) tenant, the #4 ranked and largest pediatric care network in the country, and #1 ranked in Pennsylvania. The seller expanded and renovated the building in 2019 after CHOP signed a 10-year NNN lease. After being across the street for 20+ years, the relocation allowed CHOP to expand the number of appointments as well as extend the services offered. Norristown Family Physicians (”NFP”), owned by Jefferson Health (Moody's: A3 / S&P: A-) after their recent merger with Einstein Healthcare Network. Jefferson Healthcare is a multi-state non-profit health system with over 34,500 employees and 2,851 licensed beds. Additionally it's ranked #3 by U.S. News for Best Hospitals in Pennsylvania. They have demonstrated commitment to this location by exercising multiple renewal options.

Investment Highlights

• The building was expanded and renovated in 2019 to accommodate CHOP. After being in the building across the street for 20+ years, the relocation allowed CHOP to expand the number of appointments as well as extend the services being offered, including behavioral health and social work.

• The Children’s Hospital of Philadelphia (CHOP) is an investment-grade rated (Moody’s: A3 / S&P: A -) tenant, the #4 ranked and largest pediatric care network in the country, and #1 ranked in Pennsylvania. The 19-center, 567-bed, pediatric health system serves more than 1.28 million outpatients annually in the tri-state area.

• Norristown Family Physicians ("NFP"), was acquired by Einstein Healthcare Network in 2019. Jefferson Health (Moody's: A3 / S&P: A -) successfully merged with Einstein Healthcare Network in October, 2021. Jefferson Healthcare is a multi-state non-profit health system which includes 14 hospitals, 2,851 licensed beds, 3,700 physicians and practitioners and 7,200 nurses. Additionally it's ranked #3 by U.S. News for Best Hospitals in Pennsylvania.
• Located along Dekalb Street (Route 202), a main thoroughfare in Montgomery County (9,608 VPD), the Property is less than three miles from the Norristown State Hospital (375-beds), Mercy Suburban Hospital (126-beds) and the Jefferson/Einstein Medical Center (96-beds).

• In addition to the strong local demographics, over twenty-six (26%) of the population within one mile is under the age of 18. Additionally, the population is 96% insured, higher than the nation average of 91.9%.

• Just twenty-five (25) minutes north of Philadelphia, the medical office building is located within the densely populated and affluent Montgomery County, which is the 2nd wealthiest county in the State of Pennsylvania. There are over 192,000 residents within five miles of the property with an average household income of $137,000.

Location

Site Plan

map

Team

Brokerage Team

Marc Mandel

Managing Principal
Forged Real Estate
(610) 608-2621, ext. 1

Marco DiPrinzio

Senior Director
Forged Real Estate
(610) 608-2621, ext. 5

James Yi

Director
Forged Real Estate
(215) 460-2603

Greg Zimmerman

Partner
Forged Real Estate
(610) 608-2621 ext. 3

Steve Schrenk

Principal
Forged Real Estate
(610) 608-2621, ext. 2
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