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406 Hartman Lane, O'Fallon, IL, 62269

HSHS Administration Center

$975,000

Key Information

Cap Rate
11.35%
Tot. SF
3,246
Lot Size
0.91 Acres
Year Built
2021 (R)
Term Remaining
± 2 Years
Type
Retail
NOI
$110,629

Highlights

• Investment-Grade Healthcare Tenant | S&P A+ Credit Rating: Hospital Sisters Health System (HSHS) carries an A+ investment-grade credit rating from S&P Global Ratings and operates 14 hospitals with a significant presence throughout Illinois and Wisconsin.
• 2% Annual Rental Increases: The lease provides for 2% annual rent growth, delivering consistent contractual NOI growth throughout the remaining lease term.
• Redeveloped in 2021: The property was fully redeveloped in 2021 for HSHS, providing investors with a modern administrative facility and limiting near-term capital requirements.
• 11.35% Going-In Cap Rate | Near-Term Optionality: Offered at an 11.35% cap rate with approximately two years of lease term remaining, the investment provides an attractive combination of substantial current yield, contractual rent growth, and near-term flexibility for investors.
• Established Retail Corridor: The surrounding trade area features a strong concentration of national retailers and restaurants, including Walmart, Home Depot, CVS, Starbucks, Culver’s, Denny’s, and Hardee’s, reinforcing the property’s established commercial location.
• Affluent Demographics: The property benefits from a strong surrounding consumer base, with average household incomes exceeding $107,932 within the immediate trade area.

Photos

Location

Agents

Broker of Record

Matthew M. Fitzgerald

License # 471021676, 478027547 (IL)
Matthews Real Estate Investment Services, Inc
600 W Fulton, Ste 100 Chicago, IL 60661