Fleming Island Medical Office

 OrbVest Global Real Estate
 Investment Opportunity


OrbVest's latest investment opportunity, Medical 32, Fleming Island, is a multi-tenanted class "A" medical office building located in Fleming Island, Jacksonville, Florida. OrbVest’s expansion into Florida is driven by the fundamentals that underpin value growth, most notably that Jacksonville, the largest city in Florida, is not only growing fast but its well-rounded industry base relies on no single industry for its economic growth. 

Between 2010 and 2018 Jacksonville’s population increased by almost 14% which is 139% faster than the national average.

The anchor tenant, Family Care Partners, occupies 30% of the building and is being taken over by the InnovaCare Health group. InnovaCare Health generates over $3 billion in annual revenue and ranks in the Top 10 Medicare Advantage Plans in the US. InnovaCare Health will guarantee the current lease, which expires in 2031. Fleming Island is a class “A” healthcare asset in a good location and is considered to be one of the best medical office buildings in the market.

The Jacksonville medical office building market currently consists of a total 8.5 million square feet with an average occupancy of 94.3%. The property, which was built in 2010, has 350 feet of frontage on US Highway 17 and is ¼ mile north of CR-220. It is located in close proximity to ample food and beverage locations with a traffic count of 58,500. The building size is 86,566 square feet.

InnovaCare Health, a leading provider of integrated healthcare solutions, announced that it has spun off its management services organization (MSO) portfolio to create a new, wholly-owned subsidiary, called InnovaCare Partners. At launch, InnovaCare Partners will instantly become one of the largest MSO companies in the country, overseeing services for approximately 8,000 providers and delivering care to more than 600,000 patients.

GREAT LOCATION
Fleming Island, FL located on US Highway 17. Jacksonville is one of the fastest growing areas in Florida.

MEDICAL OFFICE BUILDING
76,771 square feet rentable space, comprised of 2 buildings and sited on a 7.5 acre land parcel.

RETURNS
Forecast quarterly dividend of 8% annualised, with a targeted IRR of 13.12% nett for investors. Projected dividends of 6.1% and 7.1% in year 1 and 2 respectively, assume the vacancy is slow to fill with suitable medical tenants.

COST
The purchase price is $14.45 million with an additional $2 million provision allocated and set aside for tenant installation and transaction costs. Purchase price is $188 per square foot.

FUNDING
The $7,4 million equity raise includes a $3 million equity contribution from corporate investors and $613,000 contribution from OrbVest and our co-sponsor. There will be a debt portion of approximately $10,8 million.

HOLDING PERIOD
The investment period is planned for 5 years.