Ascension Sacred Heart

• Ownership has invested approximately $500,000 into the three subject buildings through recent roof replacements, HVAC improvements, fire sprinkler upgrades, parking lot resurfacing, and other capital improvements, substantially reducing anticipated near-term capital expenditure requirements.
• The Property operates under a modified net lease structure with contractual 3% annual rental increases, providing investors with stable cash flow, predictable income growth, and an attractive hedge against inflation.
• The campus encompasses approximately 31,600 square feet, 48 exam rooms, and multiple high-margin specialty service lines including orthopedic surgery and sports medicine. The extensive medical buildout and specialized infrastructure create significant replacement costs that support long-term tenant retention.
• The Property has been owned and operated by the existing physician partnership for more than 30 years, with Ascension Sacred Heart having occupied the campus for approximately 15 years. This longstanding operating history has established the Property as a cornerstone outpatient medical campus within the Pensacola healthcare market.
• Ascension Sacred Heart recently executed a lease extension through May 2031, while increasing contractual annual rental escalations from 1.5% to 3.0%, demonstrating a significant long-term commitment to the campus.
• Ascension has invested an estimated $800,000 into recent interior renovations, converting underutilized space into expanded clinical operations and additional patient care areas. This substantial investment further reinforces the strategic importance of the location.
• Ascension Sacred Heart is the dominant healthcare provider in Northwest Florida and operates one of the region’s largest physician networks, anchored by Ascension Sacred Heart Hospital. The health system maintains a significant market share across orthopedic, cardiovascular, pediatric, oncology, and specialty care services throughout the Pensacola region.
• Ascension is one of the largest nonprofit healthcare systems in the United States, operating approximately 140 hospitals and thousands of care sites across multiple states. The organization’s scale, physician network, and long operating history provide investors with institutional-quality healthcare tenancy.
• The Property is strategically positioned within Pensacola’s primary medical corridor less than two miles from both Ascension Sacred Heart Hospital and the new Baptist Hospital, benefiting from strong referral relationships and healthcare synergy.
• Pensacola and the surrounding Gulf Coast continue to benefit from population growth and an aging demographic profile. Older populations utilize orthopedic, sports medicine, podiatry/foot & ankle, and specialty outpatient healthcare services.