JLL is pleased to offer for sale a 100 percent fee simple interest in Patriot Plaza (the "Property" or "Building") located in Hackettstown, New Jersey. The Property is strategically located directly off Route 46, 2.8 miles south of Hackettstown Regional Medical Center and 45 miles east of Manhattan.
The Property is a 65,658 rentable square foot, multi-tenant medical office building was renovated in 2007 and is 94% occupied with 8 unique tenants, including desirable anchor tenancy by Atlantic Health System and a Surgical Care Affiliates ("SCA") surgery center. Atlantic Health System is an academic health system affiliated with Sidney Kimmel Medical College at Thomas Jefferson University with $2.5 billion in net patient service revenue in 2020. The Building features significant healthcare infrastructure including an MRI, a Level IV Trauma Center and a 2 operating room multi-specialty ambulatory surgery center in 12,864 square feet of space. There is a synergistic tenant mix at the Property with orthopedics, radiology, physical therapy, oral & maxillofacial surgery, ophthalmology, podiatry, gastroenterology, and general surgery.
The offering is a desirable opportunity to acquire a well-located medical office building containing an ambulatory surgery center that is aligned with a leading academic health system. Investors will benefit from strong in-place cash flow and the opportunity to add value through the lease up of vacant space and converting space to fully medical uses as leases rollover. The Property is available fee simple and free and clear of any mortgage debt.
Stabilized asset with value creation opportunity
- 94% occupancy provides a rare lease up opportunity with limited rollover risk
- 22% health system occupancy from Atlantic Health System
Desirable specialties and state-of-the-art infrastructure
- 2 operating rooms and 1 procedure room ASC on site protected from competition by New Jersey’s Certificate of Need laws
- Synergistic specialties including orthopedics, radiology, physical therapy, oral & maxillofacial surgery, ophthalmology, podiatry, gastroenterology, and general surgery.
- Features state of the art imaging equipment including a 1.5-tesla wide short bore MRI
- Atlantic Health System is rated Aa3 by Moody’s Investors Service with over $2.5 billion in net patient service revenue in 2020. It serves 11 counties through its 5 general acute care hospitals and over 400 sites of care.
- Emmaus Surgical Center is affiliated with SCA, which was acquired by Optum, a UnitedHealth Group (Moody’s A3) subsidiary. SCA serves over 1 million patients annually through its 250 surgical centers.
- ImageCare is one of New Jersey’s largest imaging providers with over 34 radiologists and 22 locations
Exceptional healthcare demand drivers in the local market
- Limited supply of high-quality medical office product within the submarket
- Average household income within 5 miles of the Property is $129,494, over 40% more than the national average
- Over the next 5 years the share off the population over the age of 55 is expected to increase from 30.4% to 31.9%, a desirable shift for the healthcare industry
- Located 2.8 miles from Atlantic Health System affiliated Hackettstown Regional Medical Center, the only general acute care hospital in 15 miles