Project Description
Highlights
• 37,976 square foot, 100% occupied, medical office building inclusive of an ambulatory surgery center (ASC)
• Pocono Ambulatory Surgery Center, a partnership of Surgical Care Affiliates (SCA) and Pocono Medical Center (Moody’s A2), occupies 85% of the asset rentable square feet
• Weighted average lease term remaining of six years and nine months across four leases
• All leases account for annual rental growth at the greater of CPI or 3.00%
• ASC originally opened in 1986 and has seen multiple expansions and renovations
• SCA is one of the largest providers of outpatient surgery in the United States with a network of more than 200 ambulatory surgery centers located in 35 states performing over 1 million procedures a year
• SCA is a subsidiary of OptumCare, a division of UnitedHealth Group, Inc. (Moody’s A3)
Summary
Pocono Ambulatory Surgery Center and Medical Office Building (“PASC”) occupies 100% of the 17,600 square foot property and 73% of the 20,736 square foot medical building (85% of GLA). This entity is also the guarantor of the parking lot income. The remaining 15% is leased to Pocono Medical Center. All leases account for annual rental growth via escalations. Pocono Ambulatory Surgery Center, LP escalates at the greater of CPI or 3.00% while Pocono Medical Center increases at the greater of CPI or 6.00%. As of September 1, 2019, the weighted average lease term (WALT) remaining across the assets will be six years and nine months.
PASC opened in 1986 in the Stroudsburg Borough of Monroe County as an ophthalmic surgery center. In 1990, PASC became multi-specialty and now offers procedures including gastrointestinal, general, gynecology, neurologic, ophthalmology, otolaryngology, oral, orthopedic, pain management, plastic, podiatric, spine, urology, colon-rectal, gastroenterology, pediatrics, and lithotripsy. The center employs 37 surgeons, 10 anesthesiologists, 22 registered nurses, one licensed practical nurse, eight surgical techs, two professional support staff and 10 administrative staff.
