The Dignity Health Emergency Room is a fully-equipped 24/7 emergency room staffed by board-certified physicians, emergency-trained nurses and radiology experts.
The lease structure is triple net (NNN), with zero landlord responsibilities. Tenant is responsible for maintaining, repairing, and replacing all aspects of the property, as well as all required insurances, taxes, and utilities.
There are eighteen (18.5) years remaining on the lease term, plus six (6), five (5) year options.
The lease provides for 2% annual rental increases, and total NOI growth is 43% at the end of the term.
The lease is guaranteed by Dignity Health, the fifth largest health system in the nation, and the largest hospital provider in California. Dignity Health has a Moody’s credit rating of A3, which is investment grade credit.
There is currently a proposed merger between Dignity Health and Catholic Health Initiatives (CHI), which is one of the nation’s largest healthcare systems. Should the deal consummate, the combined entity will compose of 140 hospitals, 700 plus care sites, approximately 160,000 employees, 25,000 physicians and advance practice clinicians. The new organization will boast a combined revenue of$28.4 billion and combined net worth greater than $10 billion.
The building was recently constructed in 2017, and sits on almost 1.5 acres.
There are 362,110 residents located in the five (5) mile demographic ring, and this area is projected to experience growth of 1.40% over the next five (5) years.
The subject property is located approximately 2.5 miles (±6 minutes) away from the Arizona State University Campus with over 72,000 students. Arizona State University plans to grow to 125,000 students by 2025, through their multiple campuses and online classes.
Tempe is surrounded by five major freeways and is approximately 7.8 miles (±12 minutes) away from Phoenix Sky Harbor International Airport, making it the most accessible City in the metropolitan Phoenix area.
Dignity Health has strong frontage on S Rural Rd., which reports high traffic counts of 46,870 cars per day, and is located right off of Interstate 60, which reports traffic counts of 205,376 cars per day.
The subject property is located directly across the street from a Whole Foods anchored shopping center, along with other popular tenants including Lowe’s, McDonald’s, Chase Bank, Chipotle, Jersey Mike’s, and Dunkin’ Donuts, among others.
