University of Wisconsin Health ZCF 7974 UW Health Ct 197,860 SF Office Building Middleton, WI 53562 $41,806,000 ($211.29/SF)
INVESTMENT HIGHLIGHTS
- Investment Grade Tenant (S&P: AA-) | Over 20 Years Remaining | Annual Rental Increases
- University of Wisconsin-Madison (50,000 Students) | Centralized Location | UW Health University Hospital (505 Beds)
- Nationally Recognized Integrated Health System | 775,000 Patients Annual Patients | Over 1,750 Physicians
- NNN Lease | Fee Simple Ownership | Limited Landlord Responsibilities | Ideal for Trust Planning
- Strong Synergy with University of Wisconsin and Related Businesses | Great Demographics in 5-Mile Trade Area
- Unique CTL Zero Cash Flow Financing Included | Tax Advantages and Passive Equity Growth
EXECUTIVE SUMMARY
SRS National Net Lease Group is pleased to offer the opportunity to acquire the fee simple interest (land & building ownership) in an ideally located, four story office building, 100% occupied by a single user UW Health Administrative Services. The lease is 100% guaranteed by the University of Wisconsin Hospitals and Clinics Authority who has a top tier investment grade rating of S&P AA-. The tenant has occupied the property since 2008 and recently signed a new long-term lease demonstrating their commitment to the site, along with significant capital improvements to the building. The lease features annual rental increases throughout the initial term and option periods and is on a NNN lease structure with tenant paid monthly reserves for future capital expenditures. Additionally, the asset includes a Credit Tenant Lease (CTL) zero cash flow financing to be assumed, which also includes the paydown/readvance feature allowing 1031 exchange investors to pull cash out from the transaction. The loan is non-recourse and is a rare new CTL financed loan in today’s market.
PROPERTY FACTS
Sale Type
Investment
Property Type
Office
Property Subtype
Medical
Building Size
197,860 SF
Building Class
A
Year Built
2007
Price
$41,806,000
Price Per SF
$211.29
Tenancy
Single
Building Height
4 Stories
Typical Floor Size
49,465 SF
Building FAR
0.41
Lot Size
11.07 AC
Zoning
PDD-I - Planned Development District
Parking
1,031 Spaces (5.21 Spaces per 1,000 SF Leased)
AMENITIES
- Signage
- Central Heating
- Air Conditioning
PROPERTY TAXES
| Parcel Numbers | Improvements Assessment | $23,546,900 | |
| Land Assessment | $3,781,600 | Total Assessment | $27,328,500 |
