Meridian Surgery Center - Meridian, MS OFFERING MEMORANDUM
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OFFERING MEMORANDUM
Meridian Surgery Center
Meridian, MS
This property is listed in conjunction with Mississippi-licensed real estate broker Beau Box. www.preservewestcapital.com
TABLE OF CONTENTS
PROPERT Y HIGHLIGHTS 1 AERIAL 5
PROPERT Y OVERVIEW 2 ABOUT THE AREA 6
TENANT INFORMATION 3 DEMOGRAPHICS 8
SITE PL AN 4
Disclaimer Preserve West Capital (“Broker”) has been retained on an exclusive basis to market the property described herein Putnam Daily
(“Property”). Broker has been authorized by the Seller of the Property (“Seller”) to prepare and distribute the enclosed Partner
information (“Material”) for the purpose of soliciting offers to purchase from interested parties. More detailed financial,
title and tenant lease information may be made available upon request following the mutual execution of a letter of intent or
415.445.5107
contract to purchase between the Seller and a prospective purchaser. You are invited to review this opportunity and make an putnam@preservewc.com
offer to purchase based upon your analysis. If your offer results in the Seller choosing to open negotiations with you, you will be CA RE License #01750064
asked to provide financial references. The eventual purchaser will be chosen based upon an assessment of price, terms, ability
to close the transaction and such other matters as the Seller deems appropriate.
The Material is intended solely for the purpose of soliciting expressions of interest from qualified investors for the acquisition
Lindsey Snider
of the Property. The Material is not to be copied and/or used for any other purpose or made available to any other person Vice President
without the express written consent of Broker or Seller. The Material does not purport to be all-inclusive or to contain all of the 415.906.2887
information that a prospective buyer may require. The information contained in the Material has been obtained from the Seller
lindsey@preservewc.com
and other sources and has not been verified by the Seller or its affiliates. The pro forma is delivered only as an accommodation
and neither the Seller, Broker, nor any of their respective affiliates, agents, representatives, employees, parents, subsidiaries, CA RE License #01443387
members, managers, partners, shareholders, directors, or officers, makes any representation or warranty regarding such
pro forma. Purchaser must make its own investigation of the Property and any existing or available financing, and must
Michael Maffia
independently confirm the accuracy of the projections contained in the pro forma.
Managing Partner
Seller reserves the right, for any reason, to withdraw the Property from the market. Seller has no obligation, express or implied,
415.373.4060
to accept any offer. Further, Seller has no obligation to sell the Property unless and until the Seller executes and delivers
a signed agreement of purchase and sale on terms acceptable to the Seller, in its sole discretion. By submitting an offer, a mike@preservewc.com
purchaser will be deemed to have acknowledged the foregoing and agreed to release Seller and Broker from any liability with CA RE License #01340853
respect thereto.
Property walk-throughs are to be conducted by appointment only. Contact Broker for additional information.
www.preservewestcapital.com
PROPERT Y HIGHLIGHTS
SITE
• Long-Term Net Lease to Established Outpatient Surgery Practice • Robust Demographics within 5 Mile Radius
- Rare 2% Annual Rental Escalations - Total Daytime Population of 57,054
- Partnership with Adjacent Hospital System Ensures Durable Referral Base - Average Household Income of $58,063
- Outpatient Surgery Centers Offer Considerable Cost-Advantages for - Meridian is a Retail & Healthcare Hub Drawing from a Number of Outlying
Patients Compared to Inpatient Procedures Communities with a Trade Area Population of Over 200,000
• Prominently Situated in Dense Regional Medical Hub Directly off I-20 • 2.5 Miles from Meridian Community College
- Irreplaceable Location Directly Across from Anderson Regional Medical - Approximately 3,500 Students Enrolled
Center and Two Blocks from Rush Foundation Hospital
• Situated in Regional Healthcare and Retail Hub
- 544 Hospital Beds and Medical Staff of 3,976 within 1 Mile of Site
- Broad Trade Area with Population exceeding 500,000
- Interstate 20 is a Highly Trafficked Route and the Main North/South Highway
- Nearby Anchor Tenants Include Walmart Supercenter, Walgreens, CVS,
Connecting New Orleans to Birmingham
Save-A-Lot, Vowell’s, & TJ Maxx
• Mississippi is Certificate of Need State
• Major Employers in Surrounding Area Include Georgia Pacific, Bimbo
- Significant Barriers to Entry for New Medical Users Bakeries, & More
• Priced Below Replacement Cost with Sustainable, Replaceable Rent • 11 Miles Southeast of Naval Air Station Meridian
• 20+ Year Operating History for User at Site - Approximately 4,000 Civilian and Military Personnel
- Medical Fit-Out with three (3) Operating Rooms, one (1) Procedure Room, - Economic Impact of $430+ Million
Pre-Op & Post-Anesthesia Care Units
• Meridian is 6th Largest City in Mississippi
- Long-Term Deprecation Schedules Ensure Tenant Commitment to the Site
• Approximately 92 Miles East of Jackson
- The Tenant has Invested a Significant Amount of Capital in Renovations
Including an Updated Lobby & Patient Exam Rooms
- Full Roof Replacement in 2018 with 15 Year Warranty PRESERVE WEST CAPITAL | 1
PROPERT Y OVERVIEW
ESTIMATED VALUE RANGE
Location PRICE
The property is located at 2100 13th Street and 2111 14th Street in Meridian, Mississippi.
Lot Size
$6,960,000
Approximately 1.14 acres or 49,590 square feet. 6.75% Return
Improvements
A 9,865 square foot medical building and a 5,328 square foot medical building for
Meridian Surgery Center. Annual Income
13th Street Building | 9,865 square feet
Years 13th Street 14th Street Total Return
14th Street Building | 5,328 square feet
1 $60,036 $373,964 $434,000 n/a
2 $61,237 $381,443 $442,680 n/a
Lease 3 $62,461 $389,072 $451,534 n/a
Leased to Meridian Surgery Center, LLC for 15 years from September 29, 2017
4 (Current Rent) $63,711 $396,854 $460,564 n/a
through September 30, 2032 at a current annual rent of $460,564, which shall
increase to $469,776 on October 1, 2021 . Rent is to increase by 2% annually 5 (Capitalized Rent) $64,985 $404,791 $469,776 6.75%
throughout the term of the lease. The lease is net with tenant responsible for all
6 $66,285 $412,886 $479,171 6.88%
taxes, insurance, and maintenance, excluding roof and structure.
7 $67,610 $421,144 $488,754 7.02%
4,964 square feet of the 14th Street Building are subleased to Anderson Regional
Medical Center on the same terms and conditions as the Master Lease. Meridian 8 $68,962 $429,567 $498,530 7.16%
Surgery Center, LLC remains liable for performance of all obligations under the 9 $70,342 $438,158 $508,500 7.31%
Master Lease.
10 $71,749 $446,922 $518,670 7.45%
11 $73,184 $455,860 $529,044 7.60%
Parking 12 $74,647 $464,977 $539,624 7.75%
There is ample parking available onsite. 13 $76,140 $474,277 $550,417 7.91%
14 $77,663 $483,762 $561,425 8.07%
Financing 15 $79,216 $493,438 $572,654 8.23%
The property will be delivered free and clear of permanent financing.
PRESERVE WEST CAPITAL | 2ABOUT THE TENANT
Master Tenant Certificate
Meridian Surgery Center, of Need
LLC
Management and service
contracts with Rush to Sublessee
manage surgery center,
Related
Anderson Regional
provide various medical
supplies, linen and dietary service fees Medical Center
services, etc. resulting in and costs (329-bed NFP hospital system)
significant annual recurring General Meridian Surgery Center is an ambulatory surgery
revenue for Rush surgeon
subtenants center jointly owned by Rush Foundation Hospital
employed by
ARMC and JV
and 12 local surgeons. The center is used for a range
Rush Medical Foundation Meridian Physicians, LLC owners of of outpatient surgical procedures, including general
d/b/a Rush Health System (29.5% ownership) ASC
surgery, ophthalmologic surgery, otolaryngology, oral
(72.5% ownership)
(356-bed NFP hospital system) Billups III, W.A. and maxillofacial surgery, and orthopedic surgery.
Denison, Daniel
Tartt, S.W. In each of the past 5 years, more than 20 different
Tulip, Hans H. surgeons (including the 12 surgeon owners) have
Auzenne, Gregory A. performed procedures at the outpatient surgery
Bridges, Eric W.
Chamblee, Michael center representing a wide range of surgical
Durgin, H.W. procedures, including appendectomy, breast
Green, Jr., J.R.
surgery, colorectal surgery, gallbladder surgery,
Lee, Johnathan
Makey, D.A. gastrectomy, pediatric surgery, laparoscopic surgery,
Ward, K.M. endocrine surgery, and venous surgery. In addition,
their surgeons were among the first practices in the
greater Meridian area to offer robotic surgery. The
center conducts thousands of outpatient surgical
procedures per year, which provides sustainable
profit margins while remaining more affordable than
alternative in-hospital procedures.
Additionally, Anderson Regional Medical Center
subleases approximately 1/3 of the property which is
utilized by 4 (four) of its employed general surgeons
(“Medical Arts Surgical Group”) for its clinical and
administrative office. The Anderson Regional Medical
Center surgeons are all also joint venture owners in
Meridian Surgery Center, LLC.
The Rush Foundation Hospital is a 215-bed hospital
and Level III trauma center operated by Rush Health
Systems, which operates seven hospitals and
more than 50 primary and specialty care practices
throughout East Central Mississippi and West Alabama.
PRESERVE WEST CAPITAL | 3SITE PLAN
14TH STREET
22ND AVENUE
5,328 SF
21ST AVENUE
9,865 SF
13TH AVENUE
PRESERVE WEST CAPITAL | 4AERIAL NORTHEAST VIEW RUSH FOUNDATION HOSPITAL OF MERIDIAN
ANDERSON REGIONAL MEDICAL CENTER 215-Bed Level III
Trauma Center
Meridian
Surgery Center
329-Bed Hospital, Level III Trauma Center
& Level III Pediatric Trauma Center
St
14th
Cons
tituti
on Av
e
Mississippi
Dermatology
Meridian
h St
t
13ABOUT THE AREA
NAVAL AIR
STATION
MERIDIAN
General Overview
Meridian (population 106,804) is the sixth-largest city in Mississippi and
the seat of Lauderdale county. The city is located 11 miles southeast of
Naval Air Station Meridian, which supports aviation and technical training
SITE for the U.S. Navy, employing approximately 4,000 with an economic
impact of approximately $430 million. Meridian benefits from a broad
economic base in healthcare, manufacturing, and retail. The city serves
as a major medical and retail hub for the greater East Mississippi region,
serving a broad trade area of more than 500,000. The city is situated
approximately 92 miles east of Jackson, Mississippi, and approximately
150 miles west of Montgomery, Alabama.ABOUT THE AREA
Site Information
The subject property is prominently situated within a dense regional
medical hub at the intersections of 21st Avenue and 13th and 14th
streets approximately 1.25 miles from the I-59 arterial (60,000 AADT).
The site benefits from robust demographics with a total daytime
population of 57,054 and average household income of $58,063 within a
five mile radius.
SITE The property is strategically situated adjacent to Rush Foundation
Hospital, a 215-bed Level III trauma center affiliated with the surgery
ANDERSON center, offering a durable referral base, and Anderson Regional Medical
REGIONAL RUSH
Center, a 329-bed hospital, Level III trauma center, and Level III pediatric
MEDICAL FOUNDATION
HOSPITAL trauma center. Rush Foundation Hospital and Anderson Regional
CENTER
Medical Center are the first and second largest employers in Meridian,
with staffs of 2,460 and 1,345 respectively.
In addition, the property neighbors numerous shopping centers and
major retail tenants, including Delco Plaza Shopping Center, anchored
by Vowell’s; Cloverleaf Shopping Center, featuring Harbor Freight Tools
and Dollar General; College Park Shopping Center, anchored by Big
Lots; Meridian Crossroads, featuring TJ Maxx, Petco, and Best Buy;
Bonita Lakes Mall, featuring Dillard’s, Belk, Tuesday Morning, Ashley
Homestore; and more. Other major retail tenants in the surrounding area
include Walmart Supercenter, Walgreens, CVS, and more. In addition, the
property is located approximately 2.5 miles from Meridian Community
College, with a student body of approximately 3,500 and staff of 327.
Other major employers in the surrounding area include Georgia Pacific,
Bimbo Bakeries U.S.A, Norfolk Southern, and Webster Industries.DEMOGRAPHICS
SITE
2100 13th St & 2111 14th St | Meridian, MS 39301
Top Employers # of
in Meridian Employees
Rush Foundation Hospital 2,460
2019 POPULATION MEDIAN HOME VALUE AVG. HOUSEHOLD INCOME
42,264 $131,718 $58,063
Anderson Regional Medical Center 1,345
Mississippi Air National Guard 1,200
Meridian Public Schools 1,000
Population Summary 1 Mile 1 3 Miles 5 Miles
East Mississippi State Hospital 940
2010 Total Population 8,210 34,282 43,968
2019 Total Population 7,568 32,756 42,264 Wal-Mart Stores, Inc. 690
2024 Total Population 7,277 31,733 41,009 City of Meridian 525
2019 Total Daytime Population 17,095 47,100 57,054
Alliance Health Center 355
Average Household Income
Meridian Community College 327
2019 $37,684 $53,302 $58,063
2024 $43,326 $60,049 $65,594 Avery Products 220
Median Home Value
2019 $71,970 $115,833 $131,718
2024 $75,877 $122,129 $139,508
PRESERVE WEST CAPITAL | 8Putnam Daily Lindsey Snider Michael Maffia Partner Vice President Managing Partner 415.445.5107 415.906.2887 415.373.4060 putnam@preservewc.com lindsey@preservewc.com mike@preservewc.com CA RE License #01750064 CA RE License #01443387 CA RE License #01340853
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