• Investment Grade Credit: This is a corporate lease with Aspirus Health (S&P:AA-) parent company, offering a full backstop of the lease obligations by Aspirus’ investment grade credit rated entity.
• Dominant Regional Health System: Headquartered in Wausau, WI, Aspirus Health (S&P: AA-) is a dominant healthcare network operating 18 hospitals and over 130 outpatient clinics across Wisconsin, Minnesota, and the Upper Peninsula of Michigan.
• Absolute NNN Lease Structure: The tenant is responsible for all property expenses, including roof and structure, offering a truly passive “hands-off” investment for the owner.
• Aggressive Rent Growth: The lease features 3.00% annual rental increases, providing superior income growth.
• Stable Long-Term Yield: With approximately 7.6 years of term remaining, the asset offers durable and predictable cash flow from a “sticky” medical tenant.
• Favorable Demographics: According to the U.S. Census Bureau, Duluth has a favorable population with approximately 17% of the population being 65 years of age or older, ensuring that demand for healthcare will remain strong.
• Favorable Depreciation: – Given the build out at this facility, this opportunity offers investors the ability to capture more favorable depreciation advantages through a cost segregation study.
• Medical Services: This property offers attractive medical service lines such as family medicine, nephrology, and physical therapy.