offering memorandum · by the flagship group, the reit, the advisors, or by any of their directors,...

OFFERING MEMORANDUMPiedmont Healthcare Medical Office Condominium

548 Williamson Road, Unit 6 | Mooresville, NC 28117

www.FlagshipHP.com

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CONTENTS

CONFIDENTIALITY AGREEMENT

LEASE SUMMARY

BUSINESS AERIAL

REGIONAL AERIAL

LEASE ANALYSIS

BUILDING SPECIFICATIONS

TENANT OVERVIEW

MARKET OVERVIEW

INVESTMENT SUMMARY

CONTACTS

Reed GriffithPartner & Exec. Vice President,Leasing & BrokerageD. [email protected]

Greg McIntoshAssociate, Leasing & BrokerageD. [email protected]


CONFIDENTIALITY AGREEMENTTHIS INFORMATION HAS BEEN PREPARED BY FLAGSHIP HEALTHCARE PROPERTIES (“FHP”) AND RELATED PARTIES (THE “FLAGSHIP GROUP” OR THE “SPONSOR”). THE INFORMATION IS CONFIDENTIAL AND PROPRIETARY AND IT IS BEING SUBMITTED TO YOU SOLELY FOR DISCUSSION PURPOSES, WITH THE EXPRESS UNDERSTANDING AND AGREEMENT THAT, WITHOUT PRIOR WRITTEN PERMISSION OF FLAGSHIP, YOU WILL NOT RELEASE IT TO OR DISCUSS THE INFORMATION CONTAINED HEREIN WITH, ANY PERSON OTHER THAN PERSONS AUTHORIZED BY THE SPONSORS, NOR WILL YOU USE IT FOR ANY PURPOSE OTHER THAN EVALUATING A POTENTIAL INVESTMENT IN THE PROPERTY.

IN MAKING A DECISION REGARDING AN INVESTMENT OR LOAN, YOU MUST RELY ON YOUR OWN EXAMINATION OF THE PROPERTY AND THE SPONSORS, INCLUDING THE MERITS AND RISKS INVOLVED. THIS INFORMATION HAS BEEN PREPARED FOR INFORMATIONAL PURPOSES.

THIS INFORMATION CONTAINS CERTAIN FORWARD-LOOKING STATEMENTS, ESTIMATES AND PROJECTIONS CONCERNING AN INVESTMENT IN THE PROPERTY AND OTHER MATTERS. SUCH FORWARD-LOOKING STATEMENTS, ESTIMATES AND PROJECTIONS REFLECT THE SPONSOR’S CURRENT ASSUMPTIONS AND JUDGEMENTS CONCERNING FUTURE EVENTS OR TRENDS, AND THE ACTUAL RESULTS OF THE PROPERTY MAY DIFFER MATERIALLY FROM THOSE EXPRESSED OR IMPLIED IN SUCH FORWARD-LOOKING INFORMATION FOR A VARIETY OF REASONS. ALTHOUGH THE SPONSOR AND THE PROPERTY BELIEVE THAT THE ASSUMPTIONS AND JUDGEMENTS UNDERLYING THE FORWARD-LOOKING STATEMENTS, ESTIMATES AND PROJECTIONS CONTAINED IN THE INFORMATION ARE REASONABLE, ANY OF SUCH ASSUMPTIONS OR JUDGEMENTS COULD PROVE TO BE INACCURATE OR INCORRECT, AND THE INCLUSION OF SUCH FORWARD-LOOKING STATEMENTS SHOULD NOT BE REGARDED AS, AND SHALL NOT CONSTITUTE, A REPRESENTATION OR ASSURANCE THAT ANY PROJECTED RESUTLS WILL BE ACHIEVED.

No representation, warranty, or undertaking, expressed or implied, is or will be made or given and no responsibility or liability is or will be accepted by the Flagship Group, the REIT, the Advisors, or by any of their directors, officers, employees, agents or advisors in relation to the accuracy or completeness of this or any other written or oral information made available in connection with the evaluation of such investment. In addition, neither the Sponsor, the Advisors, or by any of their directors, officers, employees, agents or advisors has any obligation to update or correct any information contained herein.

The information contained herein does not constitute an offer to sell securities in the United States or any other jurisdiction.

The Property is not a complete investment program. Rather, it is intended as a strategy for investment of a relatively small portion of an investor’s assets. The Property may be deemed to be a speculative investment. Interest in the Property are available only to sophisticated persons who have experience in financial and business matters, have sufficient available assets, and understand and can bear the investment risks of the Property, including, but not limited to, the risk that an investor could lose some or all of its investment.

The information herein is not intended to provide, and should not be relied upon for, accounting, legal or tax advice or investment recommendations. You should make an independent investigation of the investment described herein, including consulting your tax, legal, accounting or other advisors about the matters discussed herein. There can be no assurance that the investment objectives of the Property will be achieved. No guarantee or representation is made that the Sponsor’s investment programs, including without limitation, their investment objectives, diversification strategies, or risk monitoring goals, will be successful, and investment results may vary substantially over time. Nothing herein is intended to imply that the Sponsor’s investment methodologies may be considered “conservative”, “safe”, “risk free” or “risk averse”. Economic, market, and other considerations could also cause the Sponsor to alter its investment objectives, guidelines, and restrictions. In addition, there will be leverage in the Property which can make performance volatile.


INVESTMENT SUMMARY

THE INVESTMENT

Piedmont Healthcare’s Lake Norman Internal Medicine leases a 4,087 SF office condo located at 548 Willamson Road, Suite 6 in Mooresville, North Carolina. The Building was built in 1999.

Piedmont Healthcare (“PHC”) will sign a new seven year lease at closing with a gross annual rent of $54,000. The single tenant, Piedmont Healthcare’s Lake Norman Internal Medicine, is a strong, independent provider.

Piedmont Healthcare has served the Mooresville area and surrounding communities since its inception in 1996. They have been able to expand their available services to meet a wide range of needs including, but not limited to, ancillary, audiology, bariatric surgery, cardiology, dermatology, endocrinology, and family medicine.

INVESTMENT HIGHLIGHTS

100%LEASED

4,087SQUARE FEET

MODIFIED

LEASEGROSS

$4,500MONTHLYRENT


BUILDING SPECIFICATIONSLocation:548 Williamson Road, Suite 6 | Mooresville, NC

Occupancy:100%

Building Size:± 22,821 SF

Lot Size: 0.97 Acres

Subject Size:± 4,087 SF

Tax Parcel ID:4646483178.116

County:Iredell

Year Built:1999

Sales Price$549,000


LEASE ANALYSIS

CONDO ASSOCIATION RESPONSIBILITIES:• Roof• Parking Lot• Structure

LANDLORD RESPONSIBILITIES:• Association Dues: $3,320/Year• RE Taxes: $5,562• Insurance: $500/Year

TENANT RESPONSIBILITIES:• Utilities• Janitorial• HVAC Maintenance & Replacement

Gross Rent = $54,000

- Assoc. Dues ($3,320)

- 2019 RE Taxes (5,562.19)

- Insurance ($500)

NOI = $44,617.81

2020 PROJECTED NOI:

www.FlagshipHP.com 7www.FlagshipHP.com

REGIONAL AERIAL

Raleigh STATESVILLESTATESVILLE

Charlotte

NC

SC

GA AL

FL

TN

WV VA

KY

OH IN

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STATESVILLE NORTH CAROLINA

EASTERN U.S.


BUSINESS AERIAL1/27/2020 548 Williamson Rd - Google Maps

https://www.google.com/maps/place/548+Williamson+Rd,+Mooresville,+NC+28117/@35.5561445,-80.9183505,5828a,35y,72.72h,41.26t/data=!3m1!1e3!4m5!3m4!1s0x885154cc552fdc07:0xce1539222… 1/2

Imagery ©2020 Google, Imagery ©2020 Landsat / Copernicus, Maxar Technologies, Orbis Inc, U.S. Geological Survey, USDA Farm Service Agency, Map data ©2020 2000 ft

548 Williamson Rd

PROPERTYPROPERTY14

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1 Mooresville Crossing Shopping Center2 Wal-Mart Supercenter3 Winslow Bay Commons Shopping Center4 Sam’s Club5 Port Village Shopping Center6 Mooresville Festival Shopping Center7 Novant Health Family Physicians

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8 Harris Teeter9 Brawley Middle School

10 Publix Super Market11 Lake Norman Regional Medical Center12 Lowe’s Home Improvement Corporate Center13 Langtree Charter Academy14 The Cove Church

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14WILLIAMSON ROADWILLIAMSON ROAD


LEASE SUMMARY

Tenant Lake Norman Internal Medicine

Lease Commencement At Closing

Lease Expiration Seven (7) Years From Closing

Size (SF) 4,087 SF

Occupancy 100%

Base Rent (Annual) $54,000

Base Rent (PSF) $13.21

Escalation 2% Annually

Lease Type Modified Gross

$54,000Annual Base Rent

(PSF)

4,087 SFBuilding Rentable Square Footage

7 YearsLease Term

2%Annual Escalations

TENANT OVERVIEW


COMPANY WEBSITE:https://piedmonthealthcare.com/location/phc-lake-norman-internal-medicine/

ABOUTPiedmont HealthCare is one of the largest physician-owned multi-specialty groups in North Carolina and the Southeast. They are committed to providing excellent care for the whole family. They have more than 60 convenient locations and nearly 200 physicians and providers across multiple specialties to provide the most innovative medical care for our community.With nearly $150 million is annual revenue, Piedmont Healthcare’s tenancy allows for outstanding rent coverage and long-term stability to a rent roll.

Piedmont HealthCare’s physicians are committed to providing excellent and innovative medical care and services. Patients have access to the latest in medical tests and procedures including x-ray, 2D and 3D Mammography, CT, MRI, ultrasound and in-house laboratories.

60 LOCATIONS

200 PROVIDERS

A MARKET LEADERPiedmont Healthcare has an outstanding market share of approximately 70% in Stateville, NC. in 2018 alone, they hosted over 500,000 individual patients as well as opening three additional locations. Piedmont Healthcare benefits from strong relationships with the main hospitals in the region; Iredell Memorial Hospital and David Regional Medical Center.


MARKET OVERVIEW

Population Growth

Major Industries

ASSISTANCEHEALTHCARE AND SOCIAL RETAILTRADE

2.6 Average Household Size

178,435Total Population

$59,341Median Household Income

2019 Iredell County Demographics Top 20 Employers (Iredell County)1 Lowe’s Companies Inc. 4,000

2 Iredell - Statesville Schools 2,900

3 Iredell Memorial Hospital 1,448

4 Iredell County 1,330

5 Lake Norman Regional Medical Center 775

6 Mooresville Graded School District 765

7 NGK Ceramics USA 700

8 Davis Regional Medical Center 500

9 Kewaunee Scientific Corporation 500

10 Doosan Infracore Portable Power 500

11 Town of Mooresville 489

12 Engineered Sintered Components 460

13 City of Statesville 425

14 Team Penske 400

15 ASMO North Carolina, Inc. 400

16 Piedmont HealthCare 389

17 Pactiv LLC 360

18 Manheim Statesville 350

19 Mitchell Community College 314

20 Engage2Excel 265

ACCOMODATIONAND FOODSERVICEMANUFACTURING

ADVANCED

2019

2024

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2701 Coltsgate Road, Suite 300 Charlotte, North Carolina 28211P. 704-442-0222 | F. 704-367-0196 | www.FlagshipHP.com©2019 Flagship Healthcare Properties, LLC. All rights reserved. Information contained herein is from sources deemed reliable; however, no representation or warranty is made to the accuracy thereof.

CONTACTS

ABOUT FLAGSHIP HEALTHCARE PROPERTIES, LLCFlagship Healthcare Properties, LLC (Flagship) is a fully integrated healthcare real estate firm serving clients throughout the Mid-Atlantic and Southeast regions. Headquartered in Charlotte, North Carolina, Flagship offers a full range of real estate services including investment and capital solutions, development, property sales, leasing and marketing, as well as facilities, property and asset management. Flagship manages over 4.2 million square feet of healthcare real estate across more than 155 properties serving in excess of 465 tenants. The firm has developed or acquired over 80 properties valued at more than $675 million. Flagship serves as the manager of its private REIT, Flagship Healthcare Trust, Inc. For further information, visit www.FlagshipHP.com.

Reed GriffithPartner & Exec. Vice PresidentLeasing & BrokerageD. [email protected]

Greg McIntoshAssociateLeasing & BrokerageD. [email protected]

offering memorandum · by the flagship group, the reit, the advisors, or by any of their directors,...

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