ALMOST FAMILY, INC. SINGLE-TENANT OFFICE BUILDING - Fully Occupied - LoopNet
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ALMOST FAMILY, INC. Single-Tenant Office Building
(NASDAQ: AFAM)
19,335 Square Feet
SINGLE-TENANT OFFICE BUILDING
8060 Spyglass Hill Road Viera, FL 32940
Fully Occupied
OFFERING MEMORANDUM
OFFERING MEMORANDUM DISCLAIMER This Confidential Offering Memorandum (“Memorandum”) is being delivered subject to the terms of the Confidentiality Agreement (the “Confidentiality Agreement”) signed by you and constitutes part of the Confidential Information (as defined in the Confidentiality Agreement). It is being given to you for the sole purpose of evaluating the possible investment in 8060 Spyglass Hill Road, Viera, FL 32940 (the “Project”), and is not to be used for any other purpose or made available to any other party without the prior written consent of Owner, or its exclusive broker, Cushman & Wakefield. This Memorandum was prepared by Cushman & Wakefield based primarily on information supplied by Owner. It contains select information about the Project and the real estate market but does not contain all the information necessary to evaluate the Project. The financial projections contained herein (or in any other Confidential Information) are for general reference only. They are based on assumptions relating to the overall economy and local competition, among other factors. Accordingly, actual results may vary materially from such projections. Various documents have been summarized herein to facilitate your review; these summaries are not intended to be a comprehensive statement of the terms or a legal analysis of such documents. While the information contained in this Memorandum and any other Confidential Information is believed to be reliable, neither Cushman & Wakefield nor Owner guarantees its accuracy or completeness. Because of the foregoing and since the investment in the Project is being offered on an “As Is, Where Is” basis, a prospective investor or other party authorized by the prospective investor to use such material solely to facilitate the prospective purchaser’s investigation, must make its independent investigations, projections and conclusions regarding the investment in the Project without reliance on this Memorandum or any other Confidential Information. Although additional Confidential Information, which may include engineering, environmental or other reports, may be provided to qualified parties as the marketing period proceeds, prospective purchasers should seek advice from their own attorneys, accountants, engineers and environmental experts. Neither Cushman & Wakefield nor Owner guarantees the accuracy or completeness of the information contained in this Memorandum or any other Confidential Information provided by Cushman & Wakefield and Owner. Owner expressly reserves the right, at its sole discretion, to reject any offer to invest in the Project or to terminate any negotiations with any party at any time with or without written notice. Owner shall have no legal commitment or obligations to any prospective investor unless and until a written sale agreement has been fully executed, delivered and approved by Owner and any conditions to Owner’s obligations thereunder have been satisfied or waived. Owner has retained Cushman & Wakefield as its exclusive broker and will be responsible for any commission due to Cushman & Wakefield in connection with a transaction relating to the Project pursuant to a separate agreement. Cushman & Wakefield is not authorized to make any representation or agreement on behalf of Owner. Each prospective investor will be responsible for any claims for commissions by any other broker in connection with an investment in the Project if such claims arise from acts of such prospective investor or its broker. This Memorandum is the property of Owner and all parties approved by Owner and may be used only by parties approved by Owner. No portion of this Memorandum may be copied or otherwise reproduced or disclosed to anyone except as permitted under the Confidentiality Agreement.
ALMOST FAMILY SINGLE-TENANT OFFICE BUILDING
VIE R A FLOR I DA
8060
SPYGLASS
HILL RD
PRESENTED BY
Presented by:
Gino Lollio Scott Niedergang Michael Feldman, CCIM
Managing Director Managing Director Director
Healthcare Advisory Practice Healthcare Advisory Practice Commercial Brokerage
Capital Markets Capital Markets Florida Healthcare Practice Group
Tel: (312) 338-7061 Tel: (312) 338-7060 Tel: (561) 227-2063
gino.lollio@cushwake.com scott.niedergang@cushwake.com michael.feldman@cushwake.com
License: IL 475.145430 License: IL 475.145986 License: FL 3109580
PROPERTY OVERVIEW
INVESTMENT OVERVIEW 5
The Capital Markets division of the Healthcare Advisory Practice at Cushman and dentistry, dialysis and endodontic providers and clinics. The property is located
Wakefield is pleased to present the Almost Family Single-Tenant Office Building immediately east of the main Interstate 95 corridor and on the same primary exit as the
opportunity located in Viera, Florida. nearby Health First Viera Hospital. Considering the hospice and home-health nature of
the property, it is important to note that Viera is made up of multiple adult communities
The subject property is a 19,335-square-foot, single tenant office building that is 100 (55+) as well as a nearby military retirement community. Due to its proximity to these
percent occupied. The building is occupied by the long-term tenant Brevard HMA planned communities, the median age within a three mile radius of the property is
Home Health, LLC, which is corporately guaranteed by Almost Family, Inc. The tenant approximately 50 years old, almost 15 years older than the US average. Additionally,
operates under an Absolute Net lease with no landlord responsibilities. The lease nearly 27 percent of the approximately 62,000 population total within a five mile radius
includes two ten-year extension options. of the property is age 65 or older (Medicare eligible). There are approximately 15,000
households within a 3 mile radius, boasting an average household income of almost
Almost Family, Inc. (NASDAQ: AFAM) is a leading provider of cost efficient, high quality
$88,000 per year. Further, not only is the property located near a busy commerce park,
home healthcare services and related innovations to drive savings for payers and
and large retail corridor, it is also within the greater-Melbourne area that houses Cape
improve patient outcomes and experience. The company, founded in 1976, operates
Canaveral, the Indian and Banana Rivers, and a number of beach-front and aquatic
over 340 locations across 26 states. The company operates under two divisions:
preserve attractions. The location is also easily accessible from both the Orlando and
Home Healthcare, and Healthcare Innovations. The Home Healthcare segment
Melbourne Orlando international airports.
includes Visiting Nurse Services, which typically follows a period of hospitalization or
inpatient procedure. Personal Care Services are also included in the Home Healthcare
segment; these services are provided on an as-needed basis. In 2016, 70 percent of
Almost Family, Inc.’s revenue came from the Visiting Nurse Services segment and 26
■■
INVESTMENT HIGHLIGHTS
Fully Occupied, Single Tenant Office Building | 19,335
percent of the revenue was generated by the Personal Care Services segment.
Square Feet
In recent months, it has been announced that Almost Family, Inc. will be merging with ■■ Corporately Guaranteed by Almost Family, Inc. (NASDAQ:
LHC Group, Inc., in what is being termed a “merger of equals.” The merger of these
AFAM) | 340+ Locations in 26 States
two industry leaders will create an in-home healthcare service with a nearly $2 billion
revenue stream across 781 locations in 36 states. LHC Group, Inc. offers a range of ■■ Almost Family, Inc Merges with LHC Group, Inc. to Create
hospice care, as well as non-acute services through the operation of 15 long-term In-Home Healthcare Service With Nearly 2 Billion Revenue |
acute care hospitals. The merger will allow the company to operate across a national 781 Locations in 36 States
continuum of care.
■■ Absolute Net Lease with Two Ten-Year Extension Options |
The subject property is situated within the master-planned community of Viera, Florida Annual CPI Rental Escalations
along the east-west Spyglass Hill Road corridor. The Spyglass Hill Road corridor has ■■ Current Rent of $15.26 is Below Market Rents of $17-$19/
historically been well-leased with occupancy rates averaging close to 90 percent.
SF/NNN for Office Space and $18-$22+/SF/NNN for Clinical
It remains an established medical corridor providing hospital system and specialty
providers which serve the local planned community population. Current occupancy
Space
includes tenants whose leases have run well over 10 years with renewal rates ■■ Strategically Situated in Major Medical Corridor | Less than
averaging +/-84.5 percent for clinical providers. Rents have remained strong in the Two Miles from 96-Bed Health First Viera Hospital
past 12 months and are averaging $17.00-19.00/SF/NNN for office space and $18.00-
$22.00+/SF/NNN for clinical space, depending on level of finish. Current rent of $15.26
■■ Approximately 50 Miles Southeast of Orlando | Population
being paid by the tenant is below market. Surpasses 66,000 in Five-Mile Radius
■■ 27 Percent of Five-Mile Population is 65+ Years of Age
The city of Viera is located in affluent Brevard County, and the property’s location is
situated within a pocket of medical-focused services, including the neighboring Viera ■■ 2017 Median Household Income of $77,012 in Five-Mile
Health and & Rehabilitation Center and within walking distance to senior, orthopaedic, Radius | Projected 2022 Household Income is $83,040
www.cushmanwakefield.com
ALMOST FAMILY SINGLE-TENANT OFFICE BUILDING 6
8060
PROPERTY
SPYGLASS
HILL RD
SUMMARY
THE OFFERING
Almost Family Single-Tenant Office
Property Name
Building
8060 Spyglass Hill Road
Property Address
Viera, FL 32940
PROPERTY DESCRIPTION
Year Built / Renovated 1997 / 2010
Square Feet 19,335 SF
Lot Area 4.91 AC; 213,880 SF
Assessor’s Parcel Number 26-36-10-04-00000.0-0001.01
www.cushmanwakefield.com
EXTERIOR PHOTOS 7 www.cushmanwakefield.com
LOCAL MAP 8
8060
SPYGLASS
HILL RD
HEALTHFIRST VIERA
HOSPITAL
1.6 MILES AWAY
www.cushmanwakefield.com
MARKET AERIAL 9
Viera Health and
Rehabilitation
8060 Center
SPYGLASS
114 Beds
Affiliated Laboratory HILL RD
and Clinic
www.cushmanwakefield.com
FINANCIAL ANALYSIS
FINANCIAL OVERVIEW 11
SUMMARY ANNUALIZED OPERATING INFORMATION CURRENT
Scheduled Base Rental
Price $4,310,000 $295,000
Income
Down Payment 30% $1,293,000 Net Operating Income $295,000
Portfolio Price Per
$222.90 Cash Flow $295,000
Square Feet
Portfolio Rentable Debt Service ($201,234)
19,335 SF
Square Feet (RSF)
Net Cash Flow After Debt
Lot Size 4.91 Acres 7.25% $93,766
Service
Year Built/Renovated 1997 / 2010 Principal Reduction $66,836
Occupancy 100% TOTAL RETURN 12.42% $160,602
RETURNS
CAP Rate 6.85%
Cash-on-Cash 7.25%
Debt Coverage Ratio 1.47
FINANCING 1ST LOAN
Loan Amount $3,017,000
LTV New
Loan Type 70%
Interest Rate 4.50%
Amortization 25 Years
Term 5 Years
Year Due 2023
Loan information is subject to change.
www.cushmanwakefield.comRENT ESCALATION SCHEDULE 12
RENT ESCALATION SCHEDULE
MINIMUM RENT MAXIMUM RENT
Year 1 6/1/2009 - 5/31/2010 234,000 234,000
* Tenant is subject to a rent escalation Year 2 6/1/2010 - 5/31/2011 240,500 240,500
schedule set forth in the lease
documents, and provided herein. The Year 3 6/1/2011 - 5/31/2012 247,000 247,000
rental escalation is based on a CPI
growth capped at 2.7% of the previous Year 4 6/1/2012 - 5/31/2013 253,500 253,669
year’s annual rent. Additionally, and in an
effort to control for market fluctuations,
Year 5 6/1/2013 - 5/31/2014 260,000 260,518
the lease prescribes a minimum and
maximum range within which the annual
rent shall fall. Capitalized annual rent Year 6 6/1/2014 - 5/31/2015 266,500 267,552
as of 2018 was projected by growing
previous year’s annual rent (6/1/2017 – Year 7 6/1/2015 - 5/31/2016 273,000 274,776
5/31/2018) by an estimated CPI increase
to occur on the prescribed annual rent Year 8 6/1/2016 - 5/31/2017 279,500 282,195
escalation date.
Year 9 6/1/2017 - 5/31/2018 286,000 289,814
Year 10 (Current) 6/1/2018 - 5/31/2019 292,500 $295,000* 297,639
Year 11 6/1/2019 - 5/31/2020 299,000 305,675
Year 12 6/1/2020 - 5/31/2021 305,500 313,929
Year 13 6/1/2021 - 5/31/2022 312,000 322,405
Year 14 6/1/2022 - 5/31/2023 318,500 331,110
Year 15 6/1/2023 - 5/31/2024 325,000 340,050
Year 16 6/1/2024 - 5/31/2025 331,500 349,231
Year 17 6/1/2025 - 5/31/2026 338,000 358,660
Year 18 6/1/2026 - 5/31/2027 344,500 368,344
www.cushmanwakefield.comTENANT SUMMARY 13
LEASE SUMMARY
Almost Family, Inc. is a leading provider of cost efficient, high quality home healthcare services and related
innovations to drive savings for payers and improve patient outcomes and experience. The company, founded
Tenant Name Brevard HMA Home Health, LLC
in 1976, operates over 340 locations across 26 states.
The company operates under two divisions: Home Healthcare and Healthcare Innovations. The Home Guarantor Almost Family, Inc.
Healthcare segment includes Visiting Nurse Services (VNS) and Personal Care Services (PC).
Visiting Nurse Services Overview Gross Square Feet 19,335 SF
Visiting Nurse Services provides a range of Medicare-certified home health nursing services to patients in need Percentage of
of recuperative care, typically following a period of hospitalization or care in another type of inpatient facility. 100%
Occupancy
Services are often provided to patients in lieu of additional care in other settings such as long term acute care
hospitals, inpatient rehabilitations hospitals or skilled nursing facilities. Almost Family, Inc. nurses, therapists, Lease
6/1/09
Commencement
medical social workers and home health aides work with patients and their families to design and implement
an individualized treatment response to a physician-prescribed plan of care. Professionals include nurses, Lease Expiration 5/31/27
licensed practical nurses, physical, speech, and occupational therapists, and medical social workers.
Recently acquired home health segment of Community Health Systems (NYSE: CYH), one of the largest Extension Terms Two Ten-Year Options
publicly-traded hospital companies in U.S.. The acquisition includes 74 home health agencies across 22 states
and hospice business of 15 separate hospice agencies across 7 states. Joint Venture 80 percent owned by Annual Rent/GSF $15.26
Almost Family and 20 percent owned by Community Health Systems.
In 2016, 70 percent of Almost Family Inc. revenues come from this segment. Of this 70 percent, 95 percent of Monthly Rent $24,583.30
the revenue were derived from the Medicare program.
Personal Care Services Overview Base Rent Increase Annual CPI
These services, which include personal care, medication management, meal preparation, caregiver respite, and
homemaking, are provided in patients homes on an as-needed basis. These services are typically provided to Annual Rent $295,000
patients that would otherwise be admitted to a skilled nursing facility.
Lease Type Absolute Net
Revenues are generated on an hourly basis with 83 percent coming from Medicaid and other government
programs. The balance comes from insurance programs and private pay clients.
Roof/Structure Tenant Responsibility
This segment generated 26 percent of 2016 revenues, of which approximately 83 percent were derived from
Medicaid.
www.cushmanwakefield.comMERGER OVERVIEW 14
LHC Group and Almost Family Announce Merger of Equals to Create Leading
National Provider of In-Home Healthcare Services
November 16, 2017
• National platform enables greater service and continuity across continuum of care
• Well-positioned to lead the transition to value-based reimbursement through the highest quality and patient
satisfaction
• Immediately accretive for the shareholders of each company
• $25 million in run-rate cost synergies identified
• Diversification of services and expansion of geographic footprint creates in-home healthcare provider and
joint venture partner of choice for leading hospitals and health systems
• Well-capitalized balance sheet for continued growth through acquisitions
• Multi-channel growth opportunities accelerate organic growth, expand joint venture relationships and LHC Group is the preferred post-acute
extend service lines care partner for hospitals, physicians and
families nationwide. From home health
LAFAYETTE, La. and LOUISVILLE, Ky., Nov. 16, 2017 (GLOBE NEWSWIRE) -- LHC Group, Inc. and hospice care to long-term acute
(NASDAQ:LHCG) and Almost Family, Inc. (NASDAQ:AFAM) announced today that they have agreed to care and community-based services, we
combine in an all-stock merger of equals transaction pursuant to a definitive merger agreement unanimously deliver high-quality, cost-effective care
approved by the Boards of Directors of each company. that empowers patients to manage their
health at home.
http://investor.lhcgroup.com/news-releases/news-release-details/lhc-group-and-almost-family-announce-merger-equals-create
More than 60 leading hospitals and
health systems around the country have
partnered with LHC Group to deliver
LHC Group, Almost Family merger highlights growth of post-acute market patient-centered care in the home.
By Alex Kacik | November 17, 2017 More hospitals, physicians and families
choose LHC Group, because our
LHC Group and Almost Family agreed to a merger that would create the second-largest home health provider in 13,000-plus employees in 26 states are
the country with 781 locations in 36 states, more than 31,000 employees and revenue of $1.8 billion. united by a single, shared purpose: It’s
all about helping people.
The deal highlights the growing stature of the post-acute and home health space as many organizations aim to
capitalize on population health and payment initiatives that emphasize reducing unnecessary care, shift care to
lower-cost care delivery settings, improving patient satisfaction and outcomes.
http://www.modernhealthcare.com/article/20171117/NEWS/171119888
www.cushmanwakefield.comMARKET OVERVIEW
VIERA, FLORIDA 16
LOCATION OVERVIEW ECONOMY
The City of Viera is a political subdivision of the State of ■■ Viera is home to general aviation manufacturer Piper
Florida. The City was originally incorporated in 1919 as the Aircraft, which is the largest private employer in
City of Vero. In 1925, the City of Vero was re-incorporated Indian River County. As of July 2015, Piper employed
as the City of Viera and was transferred from St. Lucie approximately 750 people. Aside from Piper, the bulk
County to Indian River County. of commercial activity in Viera centers around tourism,
the citrus industry and service activities.
The City of Viera consists of 13.1 square miles and is
located about 190 miles south of Jacksonville and 135 miles ■■ There are two large shopping malls the Indian River
north of Miami on Florida’s east coast. The City’s population Mall and the Fashion Outlet Mall just west of I-95 on
is currently estimated at 15,220. State Road 60. There are small specialty shops along
Ocean Drive on the barrier island and in what is called
The City of Viera serves as its county seat, and is under a the “Miracle Mile.” The Historic Downtown is a newly
Council-Manager form of government. The five members revitalized area of shopping, dining, antique stores
of the City Council are elected to overlapping terms of two and art galleries.
years. The City Manager, City Attorney and City Clerk are
appointed by the City Council. ■■ A large part of tourism in Viera is taken in part by The
Disney Resort in Vero (Disney’s Viera Resort).
Viera is a full-service city. All traditional city services such
as police, public works, and recreation are provided. In
addition, the City of Viera operates an electrical distribution
system, water and sewer plants, solid waste collection
department, airport and marina.
www.cushmanwakefield.comVIERA, FLORIDA 17
TRANSPORTATION MAJOR AREA EMPLOYERS
■■ Viera Regional Airport is a public airport one mile
northwest of Viera, offering commercial jet service by Driftwood Inn • Hallstrom House • Old Indian River
Elite Airways.
County Courthouse • Judge Henry F. Gregory
■■ Viera is located within 14 miles of the Orlando
Melbourne International Airport, being serviced by House • Maher Building • McKee Jungle Gardens
major carriers, as well as approximately 50 miles from • Old Palmetto Hotel • Pueblo Arcade • Royal Park
downtown Orlando and the major downtown Orlando
International Airport hub. Arcade • Theodore Hausmann Estate • Old Viera
■■ Viera is served by GoLine Bus routes. Community Building • Viera Diesel Power Plant •
■■ The Florida East Coast Railway (FEC) mainline bisects Viera Woman’s Club • Vero Railroad Station • Vero
Viera, with an active team track in town serving a Theatre
lumber/building products customer.
NEARBY CITIES
ORLANDO
Approximately 56 Miles
CAPE CANAVERAL
Approximately 30 Miles
MELBOURNE
Approximately 15 Miles
www.cushmanwakefield.comDEMOGRAPHICS
VIERA, FLORIDA 19
1 MILE 3 MILES 5 MILES 1 MILE 3 MILES 5 MILES
Population Summary Housing Unit Summary
2000 Total Population 3,948 19,273 35,506 2000 Housing Units 1,783 9,258 15,518
2010 Total Population 6,439 31,990 58,461 Owner Occupied Housing Units 84.4% 80.7% 82.2%
2017 Total Population 6,759 38,000 66,289 Renter Occupied Housing Units 6.8% 10.6% 10.7%
2017 Group Quarters 160 267 270 Vacant Housing Units 8.7% 8.7% 7.0%
2022 Total Population 7,201 41,151 71,302 2010 Housing Units 3,111 15,746 26,743
2017-2022 Annual Rate 1.27% 1.61% 1.47% Owner Occupied Housing Units 73.9% 74.5% 75.8%
2017 Total Daytime Population 8,550 43,207 67,699 Renter Occupied Housing Units 17.1% 15.6% 15.5%
Workers 4,028 20,037 28,794 Vacant Housing Units 9.0% 9.8% 8.7%
Residents 4,522 23,170 38,905 2017 Housing Units 3,260 18,016 29,476
Household Summary Owner Occupied Housing Units 70.5% 72.6% 73.8%
2000 Households 1,627 8,448 14,426 Renter Occupied Housing Units 20.7% 19.5% 19.2%
2000 Average Household Size 2.31 2.24 2.44 Vacant Housing Units 8.8% 7.9% 7.0%
2010 Households 2,830 14,197 24,422 2022 Housing Units 3,456 19,285 31,391
2010 Average Household Size 2.21 2.23 2.38 Owner Occupied Housing Units 70.9% 72.9% 73.8%
2017 Households 2,972 16,594 27,400 Renter Occupied Housing Units 20.3% 19.8% 19.6%
2017 Average Household Size 2.22 2.27 2.41 Median Household Income
2022 Households 3,152 17,886 29,343 2017 $72,157 $75,738 $77,012
2022 Average Household Size 2.23 2.29 2.42 2022 $79,137 $81,867 $83,040
2017-2022 Annual Rate 1.18% 1.51% 1.38% Median Home Value
2010 Families 1,863 9,900 17,504 2017 $224,147 $239,838 $243,081
2010 Average Family Size 2.72 2.67 2.81 2022 $269,389 $303,912 $311,240
2017 Families 1,934 11,550 19,543 Per Capita Income
2017 Average Family Size 2.75 2.72 2.85 2017 $37,562 $41,435 $40,596
2022 Families 2,043 12,428 20,877 2022 $41,907 $45,929 $44,872
2022 Average Family Size 2.77 2.73 2.86
Data Note: Household population includes persons not residing in group quarters. Average Household Size is the household population divided by total households. Persons in families include the householder and persons related to the householder by birth, marriage, or adoption. Per Capita Income
represents the income received by all persons aged 15 years and over divided by the total population.
Source: U.S. Census Bureau, Census 2010 Summary File 1. Esri forecasts for 2017 and 2022 Esri converted Census 2000 data into 2010 geography.
www.cushmanwakefield.comALMOST FAMILY SINGLE-TENANT OFFICE BUILDING
VIERA FLOR I DA
PRESENTED BY
Presented by: Gino Lollio Scott Niedergang Michael Feldman, CCIM
Managing Director Managing Director Director
Healthcare Advisory Practice Healthcare Advisory Practice Commercial Brokerage
Capital Markets Capital Markets Florida Healthcare Practice Group
Tel: (312) 338-7061 Tel: (312) 338-7060 Tel: (561) 227-2063
gino.lollio@cushwake.com scott.niedergang@cushwake.com michael.feldman@cushwake.com
License: IL 475.145430 License: IL 475.145986 License: FL 3109580You can also read
