Virtual Deal Simulator
The Credit Behind the Clinic: Crestview Medical Plaza
A buyer who thinks in office cap rates is about to learn what a health-system lease is actually worth.
You’ll Practice
- Explain why medical office underwrites more like a credit-anchored net lease asset than generic office, and how health-system affiliation drives cap rate
- Distinguish a true health-system-guaranteed lease from a physician-owned affiliate's lease, and why lenders and value both hinge on that distinction
- Identify medical-specific building infrastructure (plumbing, medical gas lines, backup power, HVAC/ventilation) that drives re-tenanting cost and reserve planning
- Calculate and interpret a going-in capitalization rate for a stabilized, credit-anchored acquisition
- Assemble a lender-ready diligence package tailored to a medical office asset rather than a generic office comp set
- Match lender type (life company, bank, debt fund) to a stabilized medical office deal's actual risk and duration profile
The Assignment: Crestview Medical Plaza
Derek Voss, principal at Voss Capital Partners, has Crestview Medical Plaza under a 45-day contract at $7,800,000. The 42,500-square-foot building is 100% leased: an outpatient clinic affiliated with Crestview Regional Health System anchors roughly two-thirds of the space on a 10-year NNN lease, with five smaller specialist-physician suites — orthopedics, dermatology, OB-GYN, physical therapy, and oral surgery — filling the balance on shorter terms. Derek has closed a dozen multifamily deals and one suburban office building, but this is his first medical office acquisition, and he's asked you, his broker, to walk him through it before he goes to lenders. He's smart, numbers-literate, and a little overconfident that 'an office building is an office building.'
- Property
- Crestview Medical Plaza
- Address
- 4420 Corliss Parkway, Overland Park, KS
- Building Size
- 42,500 SF
- Year Built
- 2011
- Anchor Tenant
- Outpatient clinic affiliated with Crestview Regional Health System (imaging + primary care)
- Anchor Lease Term
- 10 years, NNN
- Other Tenants
- 5 specialist physician suites (ortho, dermatology, OB-GYN, physical therapy, oral surgery), 5-7 year terms
- Occupancy
- 100%
- Purchase Price
- $7,800,000
- In-Place NOI
- $540,000/year
- Buyer
- Derek Voss, Voss Capital Partners