Analysis of Investments

Texas Healthcare Portfolio 2

Inland

Inland Texas Healthcare Portfolio 2 is an investment into three separate medical office buildings. These properties are located in Arlington and Houston. 

Investment Highlights

  • Yr. 1 Cash-on-Cash 5.08%
  • Initial Occupancy 100.00%
  • Est. Time Horizon None YEARS
  • Current Cash Flow
  • Yr. 1 Cap Rate to Investor 5.65%
  • Investor Purchase Price $55,020,466
  • Total Offering Size $55,020,466

Loan Information

N/A

  • Yr. 1 DSCR 0.0
  • Loan-to-Offering 0.00%
  • Hold Period DSCR None

Tenant Information & Lease Terms

There are a total of three properties each with a different tenant:

USPSI - A non-investment grade tenant that operates as a Pain and Spine care facility. They have over 20 physicians and 300 employees. Their patient base is 27,000 patients.
Arlington Ophthalmology Association - Provides Eye Care and surgery in their location. This is a non-investment grade tenant.
Cortec Group - Non Investment grade that also provides eye care and is in a merger with The Eye Academy of America.

The leases have an average term of 14.8 years remaining on the leases.

Key Positives

  • The properties are well located and have strong demographic numbers.

  • The properties are located near hospitals.

  • There are annual scheduled rent escalations in the leases.

  • There is no risk of foreclosure as this is an All-Cash investment.

Key Risks to Consider

  • The Houston properties are not certified by Medicare making them an out of network provider. This could decrease their chances of being reimbursed and limits potential patient pool.

  • The sponsor is not placing a large amount of money into their reserve accounts which could cause them to have a hard time covering Tenant Improvements.

  • All of the tenants are non-investment grade.

Investment Sponsor Information

Inland

The Inland Real Estate Group of Companies, Inc. ("Inland"), is an industry leader and one of the nation's largest commercial real estate and finance organizations. As a business incubator, we specialize in creating, developing and supporting Inland member companies that provide commercial real estate-related services and alternative investment funds, including limited partnerships, institutional funds and non-listed and listed REITs.

  PAST Investments