Sarasota Medical Office Building Lists at $37M

TAMPA, FL—The Sarasota Institute for Advanced Medicine, an 82,741-square foot single-tenant medical office building in Sarasota, FL, is looking for a new owner. Marcus & Millichap listed the asset at $36.9 million, or $446 per square foot.

John Smelter, a senior director of the Healthcare Real Estate Group of M&M, is representing the seller, Citadel Properties III LLC. Smelter tells GlobeSt.com the medical office sector is hotter than ever—and Advanced Medicine is a unique property, in part, because its fully leased to a hospital with one of the best credit ratings in the healthcare industry.

“Sarasota Memorial is considered one of the top 50 hospital systems in the United States,” Smelter says. “There are not too many hospital systems with better credit.”

The Sarasota Institute for Advanced Medicine’s medical office building lease is on a long-term, triple net basis. About 25% of the project has nearly eight years remaining with no rental escalations. The other three-quarters has nearly 20 years left with a flat lease until September 2022, when a rental adjustment will occur to keep pace with inflation.

“This is a very strategic asset to Sarasota Memorial,” Smelter says. “Surely as we move forward in healthcare, we are going to see more and more medical office buildings with a fitness and wellness center component as the insurance companies and large employers try to reduce healthcare costs.”

Located at 5880 Rand Boulevard on the Care Center’s East Clark satellite campus, the Sarasota Institute for Advanced Medicine is in the Bradenton-Sarasota-Venice metropolitan statistical area. The population, currently at approximately 713,000 people, is projected to increase by 11 percent in 2014. About 40 percent of the population is 55 years of age or older. The average household income is $80,630 within a 10-mile radius of the property, which is 16 percent above the national average.