OrbVest Medical 33 - West Orange

 OrbVest Global Real Estate
 Investment Opportunity


OrbVest's latest investment opportunity, Medical 33 – West Orange, 10125 & 10131 W Colonial Drive, comprises two multi-tenant class "B" medical office buildings located in Ocoee, Florida.

The investment expands OrbVest’s presence in Florida, by adding these two medical buildings in Orlando to the recently acquired prime building in Jacksonville. It is driven by the fundamentals that will drive value growth in the area. The Orlando MSA is the fourth-largest MSA in the state of Florida, which is also a major beneficiary of the north-south migration pattern in the USA. The population of the Orlando MSA has increased by 10.09% since 2016.

The properties are ideally located directly across from Orlando Central Health Hospital. This is a 211-bed, general acute care hospital that features nationally-accredited programs in orthopedics, spine, and heart care. The hospital recently completed a 30,000 sq. ft. cancer treatment facility that fronts Colonial Drive, immediately opposite the property. Orlando Health is the region’s fifth-largest employer with a network of 9 hospitals totaling 2,400 beds and over 19,000 employees.

Major tenants of these two buildings include SimonMed, Florida Eye Clinic, Florida Behavioral Health and Soma Medical Center. SimonMed, which occupies 7,358 SF, is one of the largest outpatient medical imaging providers and largest physician radiology practices in the United States. Florida Eye Clinic occupies 6,905 SF and has grown to become a profitable clinic with 13 ophthalmologists and 14 optometrists practising in 12 locations across Central Florida.

Florida Behavioral Health occupies 5,242 SF. The company is a subsidiary of LifeStance Health, Inc, which was founded in 2015 and has over 3,000 employees. LifeStance has over 370 centers across 27 states. Soma Medical Center occupies 3,189 SF and provides a variety of services to pediatric and adult patients across 10 locations throughout Central Florida. The remaining tenant base includes services such as surgery, out-patient rehab, dialysis, and an eye clinic.

Great Location
Located across the street from Orlando Health - Health Central Hospital campus in Ocoee, Florida.

Medical Office Building
The portfolio has two medical buildings totaling 38,537 SF. Currently 88.2% leased.

Returns
Forecast quarterly dividend of 7.3% annualised with a targeted IRR of 10.17%.

Cost
The total acquisition cost is $11.2 million of which $520,645 is a provision for tenant installation and transaction costs. Entry capitalisation rate including costs is 6.79% and $246.52 per square foot.

Funding
The $4.7 million equity includes a contribution investment from OrbVest and our co-sponsor. There will be a debt portion of approximately $6.5 million.

Holding Period
The investment period is planned for 5 years.