Property Details
Stabilized Occupancy  Stabilized Income  Stabilized Cashflow  Below Market Rents 
Asset Profile
Core

Summit Medical Office Building

Clayton, NC

Medical Office Property
Greenleaf Capital Partners, LLC Atlanta, GA
Greenleaf Capital Partners, LLC
  • IRR 12.3%
  • Equity Multiple 1.69x
  • Hold Period 5Y
  • Minimum Investment $25K
  • Year 1 Cash on Cash 6.1%
  • Stabilized Cash on Cash 6.8% in Y2
  • First Distribution Apr 2021
  • Distribution Frequency Quarterly
  • Co-Investment 2%
  • Preferred Return 7%
  • Investor Profit Share 70%
  • Asset Profile Core
  • Loan-to-Value 65%
  • Current Occupancy 100%

About this Property

"We are pleased to share with you Greenleaf’s latest investment opportunity, Summit Medical, for investors desiring to add a stable and recently renovated Medical Office to their investment portfolio. Summit Medical is anchored by a GSA VA Clinic, 100% occupied with below market rents, and located in one of the fastest growing regions in the country, the Research Triangle."

- Joshua A. Friedensohn, Greenleaf Capital Partners

Address 11618 US 70 Business Hwy W
Square Footage 31,330 sq. ft.
Current Occupancy 100%
Market Occupancy 98%
Current Average Rent $15.14/SF
Average Market Rent $18-20/SF
Purchase Price $5,000,000
Stabilized Loan to Value 65%

 

Top Questions

All answers are provided by the sponsor, Greenleaf Capital Partners, or its representatives.

 

Why are you buying the Property?

Joshua A. Friedensohn, Greenleaf Capital Partners: "Summit represents an opportunity to acquire a fully leased property in one of the best regions in the country at below replacement cost with high-credit tenants, no deferred maintenance and below market rents."

 

What are the most important aspects of this investment opportunity for the investors?

Joshua A. Friedensohn, Greenleaf Capital Partners:

  • "High Credit Tenants: The property has strong, quality tenants with the Veterans Affairs anchoring the building on a fresh 5-year lease and also includes a prominent local radiology group who is in the process of building out a state-of-the-art imaging lab."
  • "Below-Market Rents: Summit Medical’s current lease rates average ~20% below the market for medical leases, with the Veterans Affairs Clinic trailing the GSA market by ~15%."
  • "Near-Fully Occupied Submarket: Raleigh, NC has grown from 560k people to over 2 million as of 2018, a 260% increase. A recent catalyst for submarket growth in Raleigh is the 540 loop, which is half completed and will soon connect the suburbs with 60 miles of highway and be a $2.2b infrastructure investment."

 

What are the first 3 steps you will take to maximize cash flow and property value?

Joshua A. Friedensohn, Greenleaf Capital Partners: "After closing on the property Greenleaf plans to hold the property along with its other properties in the market."

  1. "Step One - Operations: Greenleaf will manage the property at full occupancy and operate for cash flow. Rents will grow organically with built-in rent escalations until the time comes for lease renewals."
  2. "Step Two - Negotiate Renewals: Currently, there is strong confidence that the tenants will renew and an opportunity to bring lease rates more in line with market levels."
  3. "Step Three - Capitalize on Market Growth: The Clayton market, which is currently 98% occupied, will continue to grow with the construction of the 540 Loop further connecting the submarket to Raleigh and the rest of the Research Triangle."

 

How has COVID-19 impacted your business plan?

Joshua A. Friedensohn, Greenleaf Capital Partners: "COVID-19 has less impacted, but shaped Greenleaf’s business strategy. Greenleaf’s strategy of acquiring well located, suburban office complexes with COVID-conducive characteristics has come out of the recent movement against high-density office locations and the rise in demand for properties closer to “home” with ample space away from neighboring tenants."

 

How are risks being mitigated during the hold period?

Joshua A. Friedensohn, Greenleaf Capital Partner:

  • "Lease Renewal: The Summit rent roll has a weighted average lease term that closely follows the hold period. This allows the NOI to increase through built-in rent escalations and then renewals at market levels before an exit."
  • "Non-Payment: With Summit’s high quality tenants, the risk of non-payment is reduced and the tenants are more likely to renew with their financial commitment to the spaces."
  • "Occupancy: The submarket as a whole is also nearly 100% occupied with limited supply, adding a high percentage of continued low/no vacancy and releasing should a tenant vacate."

 

NOTE: All answers provided by the sponsor, Greenleaf Capital Partners, or its representatives.

About this Property

"We are pleased to share with you Greenleaf’s latest investment opportunity, Summit Medical, for investors desiring to add a stable and recently renovated Medical Office to their investment portfolio. Summit Medical is anchored by a GSA VA Clinic, 100% occupied with below market rents, and located in one of the fastest growing regions in the country, the Research Triangle."

- Joshua A. Friedensohn, Greenleaf Capital Partners

Address 11618 US 70 Business Hwy W
Square Footage 31,330 sq. ft.
Current Occupancy 100%
Market Occupancy 98%
Current Average Rent $15.14/SF
Average Market Rent $18-20/SF
Purchase Price $5,000,000
Stabilized Loan to Value 65%

 

Top Questions

All answers are provided by the sponsor, Greenleaf Capital Partners, or its representatives.

 

Why are you buying the Property?

Joshua A. Friedensohn, Greenleaf Capital Partners: "Summit represents an opportunity to acquire a fully leased property in one of the best regions in the country at below replacement cost with high-credit tenants, no deferred maintenance and below market rents."

 

What are the most important aspects of this investment opportunity for the investors?

Joshua A. Friedensohn, Greenleaf Capital Partners:

  • "High Credit Tenants: The property has strong, quality tenants with the Veterans Affairs anchoring the building on a fresh 5-year lease and also includes a prominent local radiology group who is in the process of building out a state-of-the-art imaging lab."
  • "Below-Market Rents: Summit Medical’s current lease rates average ~20% below the market for medical leases, with the Veterans Affairs Clinic trailing the GSA market by ~15%."
  • "Near-Fully Occupied Submarket: Raleigh, NC has grown from 560k people to over 2 million as of 2018, a 260% increase. A recent catalyst for submarket growth in Raleigh is the 540 loop, which is half completed and will soon connect the suburbs with 60 miles of highway and be a $2.2b infrastructure investment."

 

What are the first 3 steps you will take to maximize cash flow and property value?

Joshua A. Friedensohn, Greenleaf Capital Partners: "After closing on the property Greenleaf plans to hold the property along with its other properties in the market."

  1. "Step One - Operations: Greenleaf will manage the property at full occupancy and operate for cash flow. Rents will grow organically with built-in rent escalations until the time comes for lease renewals."
  2. "Step Two - Negotiate Renewals: Currently, there is strong confidence that the tenants will renew and an opportunity to bring lease rates more in line with market levels."
  3. "Step Three - Capitalize on Market Growth: The Clayton market, which is currently 98% occupied, will continue to grow with the construction of the 540 Loop further connecting the submarket to Raleigh and the rest of the Research Triangle."

 

How has COVID-19 impacted your business plan?

Joshua A. Friedensohn, Greenleaf Capital Partners: "COVID-19 has less impacted, but shaped Greenleaf’s business strategy. Greenleaf’s strategy of acquiring well located, suburban office complexes with COVID-conducive characteristics has come out of the recent movement against high-density office locations and the rise in demand for properties closer to “home” with ample space away from neighboring tenants."

 

How are risks being mitigated during the hold period?

Joshua A. Friedensohn, Greenleaf Capital Partner:

  • "Lease Renewal: The Summit rent roll has a weighted average lease term that closely follows the hold period. This allows the NOI to increase through built-in rent escalations and then renewals at market levels before an exit."
  • "Non-Payment: With Summit’s high quality tenants, the risk of non-payment is reduced and the tenants are more likely to renew with their financial commitment to the spaces."
  • "Occupancy: The submarket as a whole is also nearly 100% occupied with limited supply, adding a high percentage of continued low/no vacancy and releasing should a tenant vacate."

 

NOTE: All answers provided by the sponsor, Greenleaf Capital Partners, or its representatives.

Offered By

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Assets Under
Management

Currently
$240MM 50+ assets
Exited
$126.94MM 20+ assets
Portfolio LTV
62.9%  
Historical
Realized Returns

Total IRR
34%  
Equity Multiple
3.15x  
Annual Cash
12%  
Years Of
Experience

As Principals
20+ years  
In Business
13 years  
Size
21 Staff * Dedicated investor relations
* All information is reported by Greenleaf Capital Partners, LLC as of 11/24/2020.
Assets Under
Management

Currently
$240MM 50+ assets
Exited
$126.94MM 20+ assets
Portfolio LTV
62.9%  
Historical
Returns

Total IRR
34%  
Equity Multiple
3.15x  
Annual Cash
12%  
Years Of
Experience

As Principals
20+ years  
In Business
13 years  
Size
21 Staff * Dedicated investor relations
* All information is reported by Greenleaf Capital Partners, LLC as of 11/24/2020.

Financials

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Location Details

Clayton, NC

Joshua A. Friedensohn, Greenleaf Capital Partners: "The Research Triangle has grown 260% since 1980 and continues to attract 76 to the region daily. Raleigh ranks as the 2nd fastest growing city in the US and continues to attract 76 to the region daily. and Clayton, a suburb of Raleigh, has just begun to is feeling the impact of this growth and has led to a 99% office submarket occupancy. Closer to the Summit in Johnston County, the submarket boasts a 98% office occupancy rate."

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Offering Agreement Documents

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