-91% occupied – average occupancy of 98% since 2010 -Stable cash flow with 5.4 years of average remaining lease term -32% of rentable area leased by market-leading Kaiser Permanente (S&P: AA-) -5,400 square feet (18% of RSF) rolling with FMR options before the end of 2022 with rents 16% below market at expiration -Excellent tenant mix including orthopedics, pediatrics, primary care, dermatology, orthodontics and dentistry -1/2 mile from UCLA Medical Center Santa Monica and less than one-mile from Providence St. John’s Health Center -An asset equally appealing to medical tenants and creative office users
JLL is pleased to offer for sale the fee simple interest in Tenth Street Medical Building (the “Property”), a 29,789 rentable square foot medical office building located 0.7 miles east of the Pacific Ocean’s coastline in Downtown Santa Monica. Located one-half mile from UCLA Medical Center Santa Monica, the four-story building was built in 1984 and is 91 percent leased to a synergistic mix of medical tenants. Kaiser Permanente, rated AA- by Standard and Poor’s (“S&P”), occupies 32 percent of the building’s rentable square footage. Specialties in the building include orthopedics, pediatrics, primary care, dermatology, pharmacy, orthodontics and dentistry. The Property offers a year one net operating income $1,178,490, with long remaining terms on tenant leases that include 3.0 percent to 4.0 percent contractual fixed annual rent escalations. Tenth Street Medical Building is an attractive medical office investment supported by its location in a desirable upscale beachside city with high barriers to entry along with the building’s availability on a fee simple basis with assumable debt. The investment offers strong in-place cash flow with upside in leasing and near term mark-to-market rent opportunities.