• Commitment to Location – All three tenants recently executed new lease agreements, demonstrating long-term commitment to the property and reinforcing tenancy stability. Precision Imaging and Bella Lei are both longstanding occupants that recently extended their presence at the location, reducing near-term rollover risk and supporting durable cash flow.
• Sticky Tenancy – The property’s tenants have made substantial investments in specialized healthcare buildouts and operational infrastructure tailored to their respective practices. Precision Imaging alone has invested more than $1 million in imaging-specific improvements, including MRI shielding, dedicated electrical systems, HVAC enhancements, and other critical facility upgrades. These significant investments create meaningful barriers to relocation, reinforcing tenant retention and supporting long-term occupancy stability.
• Strong Local Operators – Precision Imaging and North Florida Eye Surgeons are established multi-location healthcare providers with strong brand recognition throughout Northeast Florida. Their regional operating platforms, referral networks, and existing patient bases reinforce the long-term viability of the tenancy and reduce operational risk.
• Recession-Resistant – The property is occupied by healthcare and wellness-oriented tenants providing essential and recurring outpatient services including diagnostic imaging, ophthalmology, and medical aesthetics. These service categories continue benefiting from population growth, aging demographics, and increasing outpatient healthcare utilization trends.
• “Hands-Off” Investment Structure – All tenants operate under net lease structures, with approximately 80% of the rent roll structured as NNN leases including management fee reimbursements. The lease profile minimizes landlord responsibilities, limits operational exposure, and creates a passive investment structure supported by stable reimbursement income.
• Hedge Against Inflation – All tenants feature annual rental increases, with more than 80% of the rent roll containing above-market contractual rent escalations. These built-in increases provide consistent income growth, help offset inflationary pressures, and support long-term property appreciation.
• Highly Accessible Location – The property is strategically positioned within Fleming Island’s primary commercial and retail corridor less than one mile from U.S. Highway 17, the area’s main north-south thoroughfare connecting Clay County to Jacksonville and the greater Northeast Florida region. U.S. 17 experiences traffic counts approaching 60,000 vehicles per day, supporting strong accessibility and patient convenience.
• Affluent Demographics – The surrounding trade area features strong household incomes, with average household income exceeding $158,000 within a one-mile radius. These affluent demographics support a highly insured patient base and sustained demand for outpatient healthcare and wellness services.
• Stable Population Growth – Fleming Island and the surrounding Clay County market continue experiencing steady residential growth driven by in-migration and suburban expansion throughout Northeast Florida. Continued population growth supports increasing healthcare utilization and long-term demand for outpatient medical space.
• Dense Residential Surroundings – The property is surrounded by established residential communities, schools, and family-oriented neighborhoods that generate consistent patient traffic and recurring healthcare demand. The location benefits from strong daily population density and proximity to the area’s core residential base.