United Realty Trust Incorporated (URTI), a public non-traded REIT offered through the independent broker-dealer channel, recently announced an acquisition of a medical building for $9.3 million.
Located in Cherry Hill, New Jersey, Carnegie Plaza contains 90,000 of rentable square feet and is currently triple-net leased to Fox Rehabilitation Services, P.C. (Fox) for 15 years with annual rent increases of 3% or CPI, whichever is greater.
Fox provides occupational, physical, and speech therapy services in the Philadelphia region.
URTI purchased the one-story building via cash and a first mortgage loan of $5.5 million and a mezzanine loan of $1.8 million.
“We believe this property fits the investment profile for the income silo of URTI’s dual strategy,” said Jacob Frydman, CEO and Chairman of URTI. “Today’s market has high demand and generally limited supply for single-tenant buildings of this size, and we believe we acquired the property at a favorable price relative to development cost. The property’s value should be further enhanced by its good visibility, easy access, ample parking and location near downtown Philadelphia.”
Built in 1988 and renovated most recently in 2009, Carnegie Plaza serves as Fox’s headquarters who leases 100% of the space. The medical provider was founded in 1998 and has earned accolades across its industry, including “Top Five Private Practice” in the U.S. by ADVANCE Magazine.
“United Realty is thrilled to partner with Fox Rehabilitation, a well-established and expanding company that provides important rehab services to a growing demographic,” added Frydman. “Properties such as 7 Carnegie Plaza are in demand and we believe we can unlock additional value from this property.”
URTI is offering up to $1,045,000,000 through its primary offering.