carolinas hospital system · • •the city also serves the pharmaceutical industry, with a...

C A R O L I N A S H O S P I TA L S Y S T E MF LO R E N C E , S C

STEVE [email protected]

MIKE [email protected]

MICHAEL [email protected]

RANSOME [email protected]

CARL [email protected]

MEGHAN [email protected]

BCA SC FIRM REAL ESTATE LICENSE NO.: 16917

704.379.1980 BERKELEYCAP.COM

1228 EAST MOREHEAD STREET | SUITE 200CHARLOTTE, NC 28204

T R A N S A C T I O N T E A M

1925 Hoffmeyer RoadFlorence, SC 29501

2

2

CHS benefits from combined high traffic counts of 52,500 VPD via Hoffmeyer Rd, Palmetto St., and

Cherokee Rd. at "Five Points" intersection.

52K+

327KFlorence serves as the primary medical hub for 327K residents

in the Pee Dee region of SC.

3 BERKELEYCAP.COM | 704.379.1980

L O C A T I O N M A P


P R O P E R T Y D E T A I L S

T E N A N T QHG OF SOUTH CAROLINA, INC.*

N E T O P E R AT I N G I N C O M E $284,087

N O I P E R S Q UA R E F O OT $12.86

R E N T I N C R E A S E S 2.50% ANNUALLY

R E N T C O M M E N C E M E N T AUGUST 1, 1997

R E N T E X P I R AT I O N JULY 31, 2027

L E A S E T Y P E MODIFIED GROSS LEASE

O R I G I N A L L E A S E T E R M 10 YEARS

L E A S E T E R M R E M A I N I N G 9+ YEARS**

O P T I O N S NONE

R I G H T O F F I R S T R E F U S A L NO

C A R O L I N A S H O S P I TA L S Y S T E MO U T PAT I E N T R E H A B I L I TAT I O N C E N T E R

1925 HOFFMEYER ROADFLORENCE, SC 29501

YEAR BUILT1997

P63

PARKING SPACES

SQUARE FEET

22,080ACRES

1.57


$ 4 , 3 7 1 , 0 0 0

6 . 5 0 % C A P R A T E

T I A L L O W A N C E & C A P I T A L I M P R O V E M E N T S$441,600 TI allowance recently given to the tenant still has yet to be used (no more than $55,200 can be used on FF&E)

• Roof was replaced in 2015: $91,000• Pavement was overlayed and restriped in 2015: $35,000• Building was recaulked & painted in 2016: $35,000

*Entity on the lease accounts for 3 hospitals, 33 clinics and over $1BN in revenue.**Tenant has option to terminate lease between 4/28/2025 and 6/28/2025 by paying a termination fee and giving 270 days notice

U N D E R W R I T I N G S C H E D U L EGROSS INCOME (ANNUAL RENT AS OF 8/1/2018) $362,112

NON-REIMBURSABLE EXPENSES

RESERVES $0.15 $3,312

PROPERTY MANAGEMENT (% OF EGI) 3.00% $10,863

REAL ESTATE TAXES $52,000

CLEANING/SWEEPING/LANDSCAPING* $7,200

INSURANCE $2,500

BUILDING EXTERIOR REPAIRS $1,150

ROADS & WALKS $500

COMMON AREA REPAIRS $500

TOTAL LANDLORD EXPENSES $78,025

NET OPERATING INCOME $284,087* *NOI: Annual rent of $362,112 minus expenses of approx. $78,025 = $284,087Tenant has maintained their own common areas for several years although the landlord is required via the lease

5 BERKELEYCAP.COM | 704.379.19805 BERKELEYCAP.COM | 704.379.1980

E X E C U T I V E S U M M A R Y

I N V E S T M E N T H I G H L I G H T S

Carolinas Hospital System has been successfully operating at this location since 1997 and recently underwent several upgrades to the real property. Their most recent capital improvements include a new roof, updated parking lot finishes, and a paint job for the building all within the past three years. There is still an out-standing $441,600 tenant improvement allowance in the permitting stage to be used on the real property with a maximum of $55,200 that can go towards FF&E. Carolinas Hospital System also operates three hospitals and 32 other clinics in the area offering a wide range of inpatient and outpatient services to the residents of the Pee Dee region.

The Pee Dee region of South Carolina is home to approximately 327,000 residents living in 12 counties throughout the northeastern portion of the state. Medical fa-cilities throughout Florence draw as far as 100 miles away for treatment. Except for some organ transplants, the facilities and physicians have the capability to perform any other procedure required. The medical community in Florence adds over $500 million annually to the local economy.

• $1BN+ REVENUE BEHIND QHG OF SOUTH CAROLINA, INC. | 3 HOSPITALS & 33 CLINICS

• LONG OPERATING HISTORY | ORIGINAL COMMENCEMNT DATE OF AU-GUST 1, 1997 | 9+ YEARS REMAINING ON EXISTING TERM

• OUTSTANDING $441,600 TENANT IMPROVEMENT ALLOWANCE FOR REAL PROPERTY | MAXIMUM $55,200 FOR FF&E | LIQUIDITY RETURNS TO SELL-ER IF NOT TAKEN ADVANTAGE OF BY TENANT | TENANT CURRENTLY IN PERMITTING STAGE

• REGIONAL MEDICAL HUB OF ENTIRE MSA | SERVES 327,460 RESIDENTS IN PEE DEE TRADE AREA | PATIENTS OFTEN TRAVEL 100 MILES TO FLORENCE TO RECEIVE CARE AND TREATMENT

• $160,000 IN RECENT CAPITAL IMPROVEMENTS SINCE 2015 | NEW ROOF, UPDATED PARKING LOT FINISHES, BUILDING REPAINTED

• STRONG TRAFFIC COUNTS | I-95 (46,100 VPD), W PALMETTO ST (19,500 VPD), STATE RD S-21-29 (19,400 VPD), AND CHEROKEE RD (13,600 VPD)

• RENT INCREASES 2.50% ANNUALLY

• STRONG DESTINATION RETAILERS IN THE AREA | WALMART SUPERCEN-TER, TARGET, LOWES, ALDI, HOME DEPOT, SAM’S CLUB, HOBBY LOBBY, MAGNOLIA MALL, FLORENCE MALL, AND OTHERS

D E M O G R A P H I C S N A P S H O T

T R A F F I C C O U N T SAADT

HOFFMEYER ROAD 19,400

W. PALMETTO STREET 19,500

CHEROKEE ROAD 13,600

I-95 (NEARBY) 46,100

1-MILE 3-MILE 5-MILE

2022 POP. PROJECTION 5,639 40,504 73,062

2017 POP. ESTIMATE 5,515 39,963 71,837

POP. GROWTH 2000-2017 12.09% 12.12% 15.37%

HH GROWTH 2000-2017 4.78% 13.23% 18.17%

2017 EST. AVG. HH INCOME $73,840 $66,836 $68,760

for detai led demographics, p lease cl ick HERE

S O U T H W E S T A E R I A L


W . P A L M E T T O S T - 1 9 . 5 K V P D

H O F F M E Y E R R O A D - 1 9 . 4 K V P D

West Florence High School 1,820 students

FlorenceCountry Club

N O R T H E A S T A E R I A L


H O F F M E Y E R R O A D - 1 9 . 4 K V P D

S . C A S H U A D R

W.

P AL M

E T T O S

T - 1

9 . 5K

VP

D

McLeod Medical Center461 beds2 miles from site

"Five Points" intersection- epicenter of the region

• The Florence community offers the latest medical technology and highly skilled specialists to administer first-rate medical care. The community is served by: 2 hospital systems with 805 beds, 280 physicians, 485 medical specialists and 57 dentists.

• The medical community in Florence is a healthy stimulus to the area economy, adding over $500 million annually.• Florence is a medical hub for the Pee Dee region and surrounding area, patients often travel 100 miles to Florence to receive care and treatment.• Over 80 percent of Florence County physicians are board certified, indicating the level of specialization and professionalism among area physicians.• Excepting some organ transplants, Florence County medical facilities and physicians are equipped and trained to perform the latest medical procedures.

Pee Dee region of SC

Hospitals and multi-use clinics serving the trade area


F L O R E N C E : T H E M E D I C A L H U B O F T H E R E G I O N


S I T E P L A N

Hoffm

eyer Road - 19,400 VPD


T E N A N T O V E R V I E W

Carolinas Hospital System, or QHG of South Carolina, Inc., is composed of 3 hospitals and 33 clinics throughout Northeastern South Carolina. They provide complete inpatient, outpatient, diagnostic, medical, surgical, and emergency care in their hospitals. While their clinics match those same services offered, they provide more focused care with each clinic designated by a specific specialty.

Carolinas Hospital System is owned by Community Health Systems, Inc. Community Health Systems, Inc. is one of the nation’s leading operators of general acute care hospitals. The organization’s affiliates own, operate or lease 126 hospitals in 20 states with approximately 21,000 licensed beds. Affiliated hospitals are dedicated to providing quality healthcare for local residents and contribute to the economic development of their communities. Based on the unique needs of each community served, these hospitals offer a wide range of diagnostic, medical and surgical services in inpatient and outpatient settings.


11

M A R K E T O V E R V I E W - F L O R E N C E , S C

F R A N C I S M A R I O N U N V I E R S I T Y P E R F O R M I N G A R T S C E N T E R

FLORENCE, SCINTRODUCTION• Florence, SC is located between Columbia, SC and Wilmington, NC• Florence’s total metro population is 136,885 (2010 census)• Recently been named among America’s top 50 cities for business relocation and expansion by Expansion Management Magazine

ECONOMY | DEVELOPMENT• Florence County and the Pee Dee Region manufacture pharmaceuticals, ATVs, state-of-the-art medical equipment, building systems, plastics, food products, industrial mechanized cutting systems, steel fabricating for large projects, heavy commercial and industrial construction • The business climate of Florence has brought more than $1 billion in capital investments in the commercial, industrial, institutional arts sectors in the past eight years alone• Florence serves as the financial and service hub for the Eastern Carolinas, with many financial and professional management institutions invested heavily within the city.

• Companies with regional operations and headquarters include BB&T, Monster.com, Otis Elevator, CSX Railway, Wells Fargo and Bank of America, QVC, and Automated Data Processing Inc. (ADP)• Florence has operation headquarters for AT&T and is the southeastern headquarters of Duke Energy Inc

• With such a strong medical community several companies have their global, continental, or national headquarters in Florence, including General Electric Medical Systems manufacturing operations, TRICARE, a supplemental insurance company that serves the US Armed Forces and its civilian employees, and Assurant, a real property and personal insurance company

• The city also serves the pharmaceutical industry, with a Patheon pharmaceutical manufacturing facility and research and development center for Patheon API Services

• McCall Farms announced in 2017 of a $35MM expansion that will create 150 new jobs• Ruiz Foods announced in 2017 of a $79MM expansion that will create 700 new jobs• GE Healthcare announced in 2017 of a $40MM expansion that will create 100 new jobs

INFRASTRUCTURE• Florence benefits from being located at the intersection of I-95 and I-20, approximately halfway between New York City and Miami, Florida

• Located 80 miles east from the state capital Columbia, 70 miles west from Myrtle Beach, 120 miles North of Charleston, and 110 miles southeast of Charlotte, North Carolina• Florence is also served by US Highways 52, 76, and 301

• Florence Regional Airport = 100 flights/day

EDUCATION• Florence Public School District One is the governing body of the public schools in the area

• The district has an active enrollment of 14,500 students, attending a total of 18 schools, including 12 elementary schools, three middle schools, and three high schools serving the City of Florence, Effingham and Quinby areas

• Facilities of higher education in and around Florence include• Francis Marion University = 4,187 students • Florence–Darlington Technical College = 5,600 students

MEDICAL• Carolinas Hospital System = 520 total beds across two area locations• McLeod Regional Medical Center = 461 beds• Regency Hospital = 61 beds• HealthSouth = 161 beds

TOURISM | ATTRACTIONS• Francis Marion University Performing Arts Center• Florence Little Theatre• Drs. Bruce and Lee Foundation Library • Florence Civic Center• Florence County Museum • Florence Rail Trail System


M A R K E T O V E R V I E W - F L O R E N C E , S C

POPULATION 1-MILE 3-MILE 5-MILE

2022 Projection 5,639 40,504 73,062 2017 Estimate 5,515 39,963 71,837 2010 Census 5,273 39,006 69,741 2000 Census 4,920 35,640 62,266 2017-2022 Annual Rate 0.45% 0.27% 0.34% 2010-2017 Annual Rate 0.62% 0.33% 0.41% 2000-2010 Annual Rate 0.70% 0.91% 1.14%

HOUSEHOLDS

2022 Total Households 2,474 16,682 29,024 2017 Total Households 2,431 16,508 28,620 2010 Households 2,356 16,256 27,992 2000 Households 2,320 14,578 24,219 2017-2022 Annual Rate 0.35% 0.21% 0.28% 2010-2017 Annual Rate 0.43% 0.21% 0.31% 2000-2010 Annual Rate 0.15% 1.10% 1.46%

2017 EST. AVG. HOUSEHOLD INCOME $73,840 $66,836 $68,760$73,840

73,062

15.37%2000-2017 POPULATION

GROWTH WITHIN FIVE MILES

2017 AVG. HOUSEHOLD INCOME WITHIN

ONE MILE

2022 POPULATION PROJECTION

WITHIN FIVE MILES

$$ $


D E M O G R A P H I C S

C O N F I D E N T I A L I T Y D I S C L A I M E RBerkeley Capital Advisors, LLC (“BCA”) has been authorized by the owner of the subject property (the “Seller”) to present you with this marketing package. This is a confidential package intended solely for your own limited use and benefit, as a principal, in considering whether you desire to pursue negotia-tions to acquire the subject property.

Your receipt and acceptance of this package serves to acknowledge your agreement to: (1) hold the information and materials contained herein,and the offering they represent, in the strictest of confi-dence; (2) not disclose, directly or indirectly, the information and materials contained herein,or the offering they represent, to any other person, firm or entity without prior written authorization from BCA or the Seller; (3) not use the information and materials contained herein in any fashion or manner detrimental to the interest of BCA or the Seller; (4) not disturb any tenants in possession of the subject property nor reveal to them the offering this package represents.

This marketing package was prepared by BCA and it has been reviewed by representatives of the Sell-er. The information and materials contained herein are selective and limited in nature, and neither BCA nor the Seller purports this to be an all-inclusive report on the subject property. Within this package, certain leases, documents and other materials are described in summary form. These summaries do not purport to be complete nor necessarily accurate descriptions of the full agreements involved, nor do they purport to constitute a legal analysis of the provisions of those documents. Interested and qualified prospective purchasers will be afforded an opportunity to review additional information and to inspect the subject property, and all such prospective purchasers should conduct their own inde-pendent due diligence.

This package is based in part upon information supplied by the Seller and in part upon information ob-tained by BCA from sources believed to be reliable. All income, expense and/or investment projections contained herein are provided for general reference purposes only, in that they are based on assump-tions relating to the general economy, competition and other factors beyond the control of BCA and the Seller, and all such projections are therefore subject to variation. This package shall not be deemed an indication of the state of affairs of the subject property, nor constitute an indication that there has been no change in the business or affairs of the subject property since the date of preparation of this package.

Neither BCA, the Seller, nor any of their respective officers, employees or agents, has made or does make any representation or warranty, expressed or implied, as to the accuracy or completeness of this package or any of its contents, and no legal commitments or obligations shall arise by reason of this package or its contents.

BCA and the Seller expressly reserve the right, at their sole discretion, to alter or amend the terms of this offering, to reject any or all expressions of interest or offers to acquire the subject property and/or to terminate discussions with any entity at any time with or without notice. The Seller shall have no legal commitment or obligation to any entity reviewing this package or making an offer to acquire the subject property unless and until a written agreement for such acquisition has been fully executed, delivered and approved by the Seller and any conditions to the Seller’s obligations thereunder have been satisfied or waived.

Parties seeking to act in a third-party brokerage capacity must register their client(s) with BCA prior to receiving or dispersing any marketing information. BCA will not recognize any third-party brokerage relationships without first receiving and approving such written client registration, nor will BCA or the Seller be obligated for any brokerage claims which may result, regardless of such broker’s involvement in procuring a purchaser for the subject property.

This package is the property of BCA. Photocopying, re-typing or other duplication of the information and materials contained herein is expressly prohibited. The information contained within this package and the offering of the subject property may not be announced, posted or otherwisepublicized in any electronic media (such as, by way of example only, any Internet or “broadcast fac-simile” communications).

If, after reviewing this package, you have no further interest in acquiring the subject property at this time, please return this package in its entirety to BCA. Likewise, if the terms contained in this Confiden-tiality & Disclaimer section are not acceptable to you, please immediately return this package to BCA.

AGENT’S DUTIESWhen you contract with a real estate firm to act as your agent in a real estate transaction, the agent must help you obtain the best price and terms possible, whether you are the buyer or seller. The agent also owes you the duty to:• Safeguard and account for any money handled for you• Act with reasonable skill, care and diligence• Be loyal and follow reasonable and lawful instructions• Disclose to you any information which might influence your decision to buy or sell

Even if the agent does not represent you, the agent must still be fair and honest and disclose to you all “material facts” which the agent knows or reasonably should know. A fact is “material” if it relates to defects or other conditions affecting the property, or if it may influence your decision to buy or sell. This does not require a seller’s agent to disclose to the buyer the minimum amount the seller will accept, nor does it require

AGENTS WORKING WITH SELLERSA seller can enter into a “listing agreement” with a real estate firm authorizing the firm and its agent(s) to represent the seller in finding a buyer for his property. The listing agreement should state what the seller will pay the firm no matter who finds the buyer.

The listing firm may belong to a listing service to expose the seller’s property to other agents who are members of the service. Some of those agents may be working with buyers as buyers’ agents; others will be working with buyers but still representing the sellers’ interests as an agent or “subagent”. When the buyer’s agents and seller’s subagents desire to share in the commission the seller pays to the listing firm, the listing agent may share the commission with the seller’s permission.

AGENTS WORKING WITH BUYERSA buyer may contract with an agent or firm to represent him (as a buyer’s agent), or may work with an agent or firm that represents the seller (as a seller’s agent or subagent). All parties in the transaction should find out at the beginning who the agent working with the buyer represents.

If a buyer wants a buyer’s agent to represent him in purchasing a property, the buyer should enter into a “buyer agency agreement” with the agent. The buyer agency agreement should state how the buy-er’s agent will be paid. Unless some other arrangement is made which is satisfactory to the parties, the buyer’s agent will be paid by the buyer. Many buyer agency agreements will also obligate the buyer to pay the buyer’s agent no matter who finds the property that the buyer purchases.

A buyer may decide to work with a firm that is acting as agent for the seller (a seller’s agent or sub-agent). If a buyer does not enter into a buyer agency agreement with the firm that shows him prop-erties, that firm and its agents will show the buyer properties as an agent or subagent working on the seller’s behalf. Such a firm represents the seller (not the buyer) and must disclose that fact to the buyer.

The terms and conditions stated in this Confidentiality & Disclaimer section apply and relate to all of the sections of this package as if stated independently therein.Prospective purchasers of the subject property are hereby notified that Berkeley Capital Advisors, and its agents, are acting in the capacity of a “Seller’s Agent” during the course of this offering, and as such are solely representing the interests of the Seller.

A S H E V I L L E138 Charlotte Street, Suite 220Asheville, North Carolina 28801

704.714.2365

C H A R L O T T E1228 East Morehead Street, Suite 200

Charlotte, North Carolina 28204704.379.1980

N A S H V I L L E1510 16th Avenue, Suite 300Nashville, Tennessee 32712

615.970.6596

B E R K E L E Y C A P. C O M

carolinas hospital system · • •the city also serves the pharmaceutical industry, with a...

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