Oak Street Health

Backed by CVS Health: Oak Street Health was acquired by CVS Health in 2023 for approximately $10.6 billion and now operates as a wholly owned subsidiary, providing significant financial backing and enhanced tenant credit quality.
Strategic National Expansion: Oak Street Health operates more than 230 centers nationwide and continues to expand its footprint serving Medicare-eligible patients through its value-based care model.
Mission-Critical Healthcare Location: The Indianapolis clinic serves a densely populated urban trade area and provides essential primary care services to local seniors.
Long-Term Lease with Rent Growth: The lease has approximately 12.4 years of remaining term, with scheduled 10% rent increases every five years and two five-year renewal options. This structure provides investors with a growing income stream secured by a long-term lease, while offering additional upside through future rent escalations and extension options.
Ideal 1031 Exchange Opportunity: The combination of a 6.75% cap rate, long-term NNN lease structure, and stable cash flow provides investors with a passive, management-light investment. Scheduled rent increases further enhance the opportunity by offering income growth over time while helping to hedge against inflation.
Established National Healthcare Tenant: Oak Street Health is one of the nation’s leading value-based primary care providers, operating a rapidly expanding network of clinics across the country. The company’s continued investment in new locations, patient growth initiatives, and healthcare infrastructure demonstrates a long-term commitment to serving its communities and supporting the ongoing expansion of its platform.
Strong Infill Indianapolis Location: Located at 711 E. 38th Street in Indianapolis, the property benefits from strong visibility, accessibility, and proximity to surrounding residential communities.
Favorable Market Fundamentals: Indiana’s growing Medicare-eligible population and continued adoption of Medicare Advantage plans create a supportive operating environment for Oak Street Health’s value-based care platform. Because Oak Street’s model is centered on managing the total cost of care for Medicare Advantage beneficiaries, these demographic and reimbursement trends help support the long-term viability of its clinics.
Growing Indianapolis MSA: The Indianapolis MSA has added more than 100,000 residents since 2020, making it one of the fastest-growing metropolitan areas in the Midwest and reinforcing the market’s strong long-term economic and demographic fundamentals.
Strategic Midwest Healthcare Market: As the largest metropolitan area in Indiana and a major healthcare hub for the Midwest, Indianapolis offers strong healthcare infrastructure, a broad referral network, and favorable demographics that support continued demand for outpatient medical services.
Fee Simple Ownership: The offering includes fee simple ownership, providing investors full ownership of the real estate.
Stable Cash Flow from Essential Healthcare Real Estate: Healthcare real estate continues to benefit from favorable demographic trends and resilient demand across economic cycles.

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Kyle Matthews