RadNet Central California | 6191 N Thesta St, Fresno, CA 93710 · 2019. 7. 15. · Fresno, CA 93710...

| 16191 N THESTA ST, FRESNO, CA 93710

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OFFERING MEMORANDUM

T E N A N T O V E R V I E W0 7

E X E C U T I V E O V E R V I E W0 3

F I N A N C I A L O V E R V I E W0 4

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TABLE OF CONTENTSLISTED BYKYLE MACKULAK

[email protected]

DIRECT (310) 919-5835MOBILE (262) 672-8388LIC # 02055597 (CA)

RAHUL CHHAJED SENIOR ASSOCIATE

[email protected] (949) 432-4513MOBILE (818) 434-1106LIC # 01986299 (CA)

MICHAEL MORENO SENIOR ASSOCIATE


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KYLE MATTHEWSBROKER OF RECORD

LIC # 1972189 (CA)

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SECTION 1EXECUTIVEO V E R V I E W

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INVESTMENT OVERVIEW:Matthews Real Estate’s Healthcare Division is pleased to offer for sale an Absolute NNN Freestanding Imaging Facility leased by Radnet Imaging, the largest operating of freestanding imaging facilities in the country. This state of the art facility, located in a dense healthcare corridor, offers a potential investor the opportunity to acquire a very strong healthcare investment with a stable long-term outlook.

TENANT• Strong Corporate Guaranty – Radnet currently operates 323 locations across the country and have a current market cap of $661M. Prospective investors should note the strong likelihood

that the size of Radnet’s guarantee will increase, as the company is strong performing and fast growing, quadrupling in size since 2006. • Growing Sector in Healthcare Industry – The global diagnostic imaging market is expected to reach an estimated $33.2 billion by 2022, and is forecasted to grow at a CAGR of 3.4% from

now until 2022.• Preferred By Physicians - RadNet maintains some of the most preferred outpatient imaging sites by referring physicians. They offer a complete range of advanced imaging services on state-

of-the-art imaging equipment.

PROPERTY HIGHLIGHTS • Medical Real Estate — Healthcare properties are extremely sought-after investments for their resistance to downturns in the economy and e-commerce trends that affect traditional retail

properties.• Hands Off Investment - This is an absolute NNN asset with zero landlord responsibilities, giving perspective investors passive “mailbox money” that they can rely on for years to come.

LOCATION HIGHLIGHTS • Robust Demographics - The subject property is situated off the Yosemite Freeway, which boasts daily traffic counts exceeding 110,000. There are more than 122,000 individuals residing

within a three-mile radius of the subject property and more than 334,000 individuals residing within a five-mile radius and projected growth of near 4% over the next 5 years.• Strong Real Estate Fundamentals - The subject property benefits from being well-positioned in a highly dense medical and retail corridor consisting of national and local tenants, shopping

centers, and universities all within close proximity of this property. • Strategic Location - Strategic location to healthcare operators, located in a medical park that features local and regional tenants as well as national operators, only 2 Miles away from the

Saint Agnes Medical Center.

BUSINESS MODEL• Imaging Defined - Diagnostic imaging is the term used to describe all the different ways that physicians look inside patients. A diagnostic imaging center has equipment and trained specialists

to perform those tests. Diagnostic imaging is used to monitor an existing health condition, investigate a concerning symptom, or pin down a diagnosis. It can be used to guide treatments so that the doctors can give the least invasive treatments possible.

• Unique Business - Outpatient imaging centers thrive when they receive strong referrals and are priced competitively compared to other options in the area.• Changing Healthcare - As health systems expand into new market and try and reach as many patients as possible, outpatient facilities such as this one that are located conveniently in retail

corridors will continue to thrive.

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SECTION 2FINANCIALO V E R V I E W

» P R O P E R T Y A D D R E S S

» L I S T P R I C E

» N O I

» C A P R A T E

» P R I C E / S F

» G L A

» Y E A R B U I LT

» R E N T S F

6191 N Thesta St Fresno, CA 93710

$381,600

$438.84

$6,350,000

6.01%

INVESTMENT SUMMARY

± 14,470 SF

1986

TENANT SUMMARY

Tenant Name RadNet

Type of Ownership Fee Simple

Lease Type NNN

Original Lease Term 10 Years

Lease Commencement Date 8/27/85

Lease Expiration Date 12/31/23

Term Remaining 4 Years 6 months

Increases See Rent Schedule

Options One (1) Five (5) Year Option

Guaranty Corporate

Tenant Name Drayer Physical Therapy


Lease Type NNN

Original Lease Term 5 Years

Lease Commencement Date 9/23/16

Lease Expiration Date 9/23/21

Term Remaining 2 Years 4 Months

Increases 1.25/Ft Increase in First Option $1.00/Ft Increase in Second Option

Options Two (2) Three (3) Year Options

$26.37

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TENANT SUMMARY

ANNUALIZED OPERATING DATAYear Monthly Rent Annual Rent Rent/SF Cap Rate2019 $31,800.00 $381,600.00 $26.37 6.01%

2020 $32,500.00 $390,000.00 $26.95 6.14%

2021 $33,100.00 $397,200.00 $27.45 6.26%

2022 $33,800.00 $405,600.00 $28.03 6.39%

2023 $34,500.00 $414,000.00 $28.61 6.52%

SITE DESCRIPTION

Number of Stories One

Tenant Trade Name RadNet Imaging

Lot Size 1.49 Acres (65,043 SF)

GLA 14470


Landscaping Professional

Topography Generally Level

PARCEL MAP

DWIG

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AVID

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MEM

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EWAY

±23

0,00

0 VP

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SURROUNDING TENANTS

YOSEMITE FREEWAY ±110,000 VPD

CHRISTOPHER PERKINS MDAT CALIFORNIA ONCOLOGY

VALLEY WEIGHTCONTROL CENTER

ADVANCED PAINSOLUTIONS

NICHOLAS J ORME MD FAMILY MEDICINE

CRITICAL CARECONSULTANTS

HEALTHCARE CALIFORNIAHOME HEALTH AGENCY

SAN JOAQUIN VALLEY COLLEGE

FRESNO MEDICAL CENTER

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SECTION 3TENANTO V E R V I E W

RadNet’s highly specialized radiologists provide expert readings on images obtained from advanced diagnostic equipment, including 3T MRI. They perform some of the most innovative procedures available in radiology today. The compassionate staff and convenient locations in Fresno, Madera, Kings, and Tulare Counties are there to make radiology appointments as comfortable as possible.

RadNet maintains some of the most preferred outpatient imaging sites by referring physicians. They offer a complete range of advanced imaging services on state-of-the-art equipment. These include 3T MRI, multi-slice CT, PET/CT, nuclear medicine, interventional radiology and more. RadNet’s efficiency and expertise ensures that referring physicians receive accurate patient exam results promptly.

Today, RadNet Central California is partnered with RadNet, Inc., a national leader in diagnostic imaging. With this partnership, Radnet Central California is affiliated with more than 160 centers in California, New York, Maryland, Florida, Delaware, and Kansas. For more information about RadNet, Inc.

» L O C A T I O N S5

» C O M P A N Y N A M ER A D N E T I M A G I N G C E N T E R

» I N D U S T R YM E D I C A L

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SECTION 4AREAO V E R V I E W

Fresno, California is the county seat of Fresno County. It covers about 112 square miles in the center of the San Joaquin Valley, the southern portion of California’s Central Valley.

Fresno is an economic hub of Fresno County and the San Joaquin Valley, with much of the surrounding areas in the Metropolitan Fresno region predominantly tied to large-scale agricultural production.

Fresno is the fifth-most populous city in California, the most populous city in the Central Valley, the most populous inland city in California, and the 34th-most populous city in the nation.

Fresno is near the geographical center of California. It lies approximately 220 miles north of Los Angeles, 170 miles south of the state capital, Sacramento, and 185 mile southeast of San Francisco. Yosemite National Park is about 60 miles to the north, Kings Canyon National Park is 60 miles to the east, and Sequoia National Park is 75 miles to the southeast.

FRESNOPOPULATION 1 Mile 3 Mile 5 Mile

2010 Census 16,310 122,676 334,349

2019 Estimate 16,826 126,378 349,700

2024 Projection 17,264 129,519 360,788

Growth: 2010-2019 3.16% 3.02% 4.59%

Growth: 2019-2024 2.60% 2.48% 3.17%

HOUSEHOLDS 1 Mile 3 Mile 5 Mile

2010 Census 6,583 47,006 121,5032019 Estimate 6,761 48,291 126,2522024 Projection 6,926 49,445 130,004Growth: 2010-2019 2.70% 2.73% 3.91%Growth: 2019-2024 2.44% 2.39% 2.97%INCOME 1 Mile 3 Mile 5 Mile

2019 Est. Average Household Income $62,945 $79,732 $79,420

DEMOGRAPHICS

SECTION 4

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CONFIDENTIALITY AGREEMENT & DISCLAIMERThis Offering Memorandum contains select information pertaining to the business and affairs of Radnet Imaging Center located at 6191 N Thesta St | Fresno, CA (“Property”). It has been prepared by Matthews Real Estate Investment Services. This Offering Memorandum may not be all-inclusive or contain all of the information a prospective purchaser may desire. The information contained in this Offering Memorandum is confidential and furnished solely for the purpose of a review by a prospective purchaser of the Property. It is not to be used for any other purpose or made available to any other person without the written consent of Seller or Matthews Real Estate Investment Services. The material is based in part upon information supplied by the Seller and in part upon financial information obtained from sources it deems reliable. Owner, nor their officers, employees, or agents makes any representation or warranty, express or implied, as to the accuracy or completeness of this Offering Memorandum or any of its contents and no legal liability is assumed or shall be implied with respect thereto. Prospective purchasers should make their own projections and form their own conclusions without reliance upon the material contained herein and conduct their own due diligence.

By acknowledging your receipt of this Offering Memorandum for the Property, you agree:

1 . The Offering Memorandum and its contents are confidential;2. You will hold it and treat it in the strictest of confidence; and3. You will not, directly or indirectly, disclose or permit anyone else to disclose this Offering Memorandum or

its contents in any fashion or manner detrimental to the interest of the Seller.

Owner and Matthews Real Estate Investment Services expressly reserve the right, at their sole discretion, to reject any and all expressions of interest or offers to purchase the Property and to terminate discussions with any person or entity reviewing this Offering Memorandum or making an offer to purchase the Property unless and until a written agreement for the purchase and sale of the Property has been fully executed and delivered.

If you wish not to pursue negotiations leading to the acquisition of the Property or in the future you discontinue such negotiations, then you agree to purge all materials relating to this Property including this Offering Memorandum.

A prospective purchaser’s sole and exclusive rights with respect to this prospective transaction, the Property, or information provided herein or in connection with the sale of the Property shall be limited to those expressly provided in an executed Purchase Agreement and shall be subject to the terms thereof. In no event shall a prospective purchaser have any other claims against Seller or Matthews Real Estate Investment Services or any of their affiliates or any of their respective officers, Directors, shareholders, owners, employees, or agents for any damages, liability, or causes of action relating to this solicitation process or the marketing or sale of the Property.

This Offering Memorandum shall not be deemed to represent the state of affairs of the Property or constitute an indication that there has been no change in the state of affairs of the Property since the date this Offering Memorandum.

LISTED BY

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KYLE MACKULAK ASSOCIATE


RAHUL CHHAJED SENIOR ASSOCIATE


MICHAEL MORENO SENIOR ASSOCIATE


KYLE MATTHEWSBROKER OF RECORD

LIC # 1972189 (CA)

RadNet Central California | 6191 N Thesta St, Fresno, CA 93710 · 2019. 7. 15. · Fresno, CA 93710...

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Transcript of RadNet Central California | 6191 N Thesta St, Fresno, CA 93710 · 2019. 7. 15. · Fresno, CA 93710...