STABILIZED MOB ANCHORED BY POMONA VALLEY HOSPITAL
MEDICAL CENTER - CHINO HILLS, CA
* ±95% leased purpose-built MOB anchored by Pomona Valley Hospital Medical Center (PVHMC), a 437 bed fully accredited, acute care hospital serving eastern Los Angeles and western San Bernardino counties.
* Originally built to accommodate PVHMC in 2004, PVHMC renewed its commitment to the building by signing a new 7-year NNN lease through December 31, 2029, with 2.5% fixed annual increases. PVHMC currently accounts for ±48% of the rentable building area.
* High Credit Anchor - Prior to retiring all its outstanding debt, PVHMC was rated Standard & Poors ‘BBB’. As of April 2021, PVHMC's Annual Net Patient Revenue was ±$650M (90th Percentile).
STABLE CASH FLOW WITH UPSIDE
* Leased to a diverse mix of 15 tenants with a Weighted-Average Remaining Lease Term of ±4.2 years.
* Other than PVHMC, no tenant occupies more than 5.9% of the rentable area, with no more than ±12% rolling in any given year except for 2029.
* The in-place NNN leases require minimal management from new ownership. Any
operational risk is fully assumed by an experienced tenancy with deep roots in the
region.
STRONG MEDICAL OFFICE FUNDAMENTALS
* Chino Hills is part of the Inland Empire medical office market, comprised of 148 properties totaling 8.4M SF, with a very low vacancy rate of 5.5% and 166K SF of positive net absorption over the past 12 months.
* Within a 5-mile radius, Chino Hills Professional Plaza MOB is one of only five high-quality medical office buildings totaling approximately 208K SF, with a low combined vacancy rate of 6.0%, and no new construction planned in the area.