Net Lease Capital: Health Investors DST
Investment Overview
This investment offering is two adjacent office buildings in Philadelphia, Pennsylvania, leased to AmeriHealth Caritas. Tenant: Keystone Family Health Plan, AmeriHealth Caritas Health Plan, AmeriHealth Caritas Services, LLC & BMH, LLC (doing business as AmeriHealth Caritas). Guarantors: Blue Cross Blue Shield of Michigan, “A,” AM Best (38.74%); Independence Health Group “A-,” S&P (61.26%) 17-Year NNN Lease
Offering Strengths
Potential investment opportunity for 1031 exchange investors needing to replace debt.
Offering Weaknesses
Value appreciation largely contingent on lease renewal.
Key Facts
Sponsor: Net Lease Capital
Structure: Delaware Statutory Trust (DST)
Location(s): Pennsylvania
Property Type(s): Medical NNN
Assumable Loan: 84.75% LTV
Estimated Hold Period: 10 Years
Key Features
1031 Exchange: Yes
721 Exchange/UPREIT: No
Cash-Out Refinance: No
Income Guarantee: No
Distribution Forecast
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 | |
|---|---|---|---|---|---|---|---|---|---|---|
| Investor Cash Flow | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
Sponsor Overview
Net Lease Capital was founded in 1996 as a privately owned, commercial real estate investment firm. The Company focuses on acquiring single-tenant properties that are leased to the Federal Government or to investment-grade corporations. Since inception, Net Lease Capital has closed over $15 billion in transactions, currently with $8.7 billion in AUM. Net Lease Capital is comprised of acquisitions, asset management, property management, and advisory groups. The Advisory Group specializes in structuring replacement property and financing for 1031 exchange.