Palmetto Medical Center, SC


Palmetto Medical Center is strategically located just north of the Providence Hospital facility (recently acquired by LifePoint health – NASDAQ:  LPNT), which is situated between the Forest Acres subdivision and the Central Business District of Columbia (the State Capital of SC).  The primary driver and anchor for the building is Palmetto Pain Management, which is currently located in one of the medical buildings owned by Providence Hospital and part of the overall medical campus.  Palmetto Pain Management (“PPM”) is currently in need of additional space and is constrained by its current location, which has been exacerbated by Providence Hospitals expansion needs within its campus.  Thus, the reason for PPM’s relocation to accommodate not only its medical office use, but also its ambulatory surgical center and laboratory.  It addition to PPM’s long-standing presence in the medical community of Columbia, PPM’s financials are quite strong and PPM has entered into a 10 year firm-term NNN lease for just under 70% of the building’s rentable sq. ft. (nearly 75% based upon Building Revenue). PPM is an interventional pain management physician office where the staff are all Board Certified and fellowship trained.  The balance of the building will be leased to other medical users.  It is the Sponsor’s desire to sell the Property once the tenant occupancy has been financially “stabilized”, which is expected to occur in either Year #2 or #3 of the Holding Period for the purpose of maximizing returns.