Case Study- Flint Medical Investors
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Flint Medical Investors
(Medical Investors)
Prevail Real Estate Opportunities is pleased to present Flint Medical Investors (“FMI”), an exclusive acquisition of and leaseback to the operating physicians of three different medical office buildings, Dort, Center and Longway in Flint, MI.
FMI intends to acquire, lease back to the seller, Michigan Health Specialists (“MHS”), operate and then exit the property in 2032. FMI has also begun discussions to purchase and improve the remaining square footage in the Longway building in the future.
If you have any questions, please reach out to your advisor or contact Regan Smith at rsmith@prevailiws.com
Investor Return Summary*
- IRR Targeted: 13.16%
- Cash on Cash 5 Yrs: 7.73%
- Cash on Cash 10 Yrs: 8.54%
- Proforma Hold: 10 Yrs
Investment Snapshot
- Initial Project Cost: $16,272,535
- Equity: $5,772.535
- Initial Loan: $10,500,000
- Minimum Investment 1%: $60,800.00
- Sq Ft of three bldgs: 49,021
Property Information
- MHS has been operating in Flint, MI for 20+ years employing more than 500 professionals and serving over 3,000 patients annually.
- MHS operates from four separate locations and FMI is acquiring all of their 3 owned locations:
- South Dort Highway in Grand Blanc – 9,712 square feet
- South Center Road in Burton – 27,772 square feet
- Robert T Longway Boulevard in Flint (1/3 of the condominium building, Suite B) – 11,537 square feet
- MHS has a broad practice from pediatric to geriatric care, internal & family medicine and are also on the forefront of providing holistic care and telemedicine services.
- Flint is located approximately sixty miles North of Detroit and its metro population is 344,000. MHS locations serve surrounding Genesee, Oakland, and Lapeer counties.
- MHS has a strong relationship with several major hospitals in the region and provides space to Hurley Urgent Care at their Dort and Center Road locations and a Hurley diabetes facility at Center Road as well. The three locations serve as anchors for the region with both pharmacy and laboratory sub-tenants. Several doctors are contributing capital to the new ownership.
- MHS is in-network with major commercial payors as well as serving a significant Medicaid population which lowers earnings volatility and provides a more sustainable income stream.
*These are all preliminary estimates, with no guarantee of performance, and involve risk.