Non-traded REIT, United Realty Trust Incorporated (URTI), recently announced that it has acquired a stabilized, triple-net leased medical facility in Myrtle Beach, South Carolina.
The two-story property was built in 1999 and has 44,323 rentable square feet, as well as 224 outdoor parking spaces. The REIT paid $15.65 million, inclusive of closing costs, for the building. URTI funded the acquisition with $10.3 million from a new first mortgage loan secured by the property, cash from the Company’s Operating Partnership of approximately $3.249 million, and $2.1 million in preferred equity from an unaffiliated third party.
Located at 945 82nd Parkway, the property is at the entrance to a corridor of medical buildings and is close to Grand Stand Regional Medical Center. It is currently 100% leased to three medical service providers; Carolina Health Specialists, The Cardiology / Gastroenterology Associates, and Grand Strand Regional Diagnostic and Women’s Center.
“This medical office building represents an attractive acquisition in this particular market while also fitting the target investment profile for the income silo of URTI’s dual acquisitions strategy,” said Jacob Frydman, CEO and Chairman of United Realty Trust. “In addition to the upside of being located near a major regional healthcare facility, this property has good visibility, is easy to access and provides ample on-site parking, which is important for patient care.”
URTI invests primarily in interests in real estate located in the United States, with a focus on the eastern U.S. and in markets that are likely to benefit from favorable demographic changes, or that are poised for strong economic growth. It uses a dual strategy to generate stable cash distributions and growth through the acquisition of stabilized, cash flowing real estate in addition to value added and opportunistic assets.
The REIT is offering 100,000,000 common shares in its $1 billion initial public offering and 20,000,000 common shares pursuant to its distribution reinvestment program. URTI expects to close its primary offering August 15, 2015.