REIT Sale | Renovated MOB with High Yield 7111 E 21st St

CBRE U.S. Healthcare Capital Markets is pleased to exclusively offer the opportunity to acquire the fee-simple interest in the Primary Care Associates medical office building, an expertly maintained Class-B, medical outpatient building located at 7111 E 21st Street in Wichita, KS. Delivered 86% occupied with a robust first-year NOI, this exciting opportunity provides a cash-flowing asset with additional growth potential to fill the remaining vacancies, which all boast second generation clinical build outs. With local vacancy rates of just 4.9% and annual rent growth of more than 2.8%, there is significant upside for a value-add investor seeking a stabilized asset in this performing submarket.

Institutionally owned and managed, the 39,587-square-foot facility has received numerous upgrades and renovations in recent years. In addition to replacing the roof in 2017 with a warranty through November 2025, current ownership has spent approximately $872,000 in capital expenditures that include the common area lobby, parking lot asphalt overlay, HVAC units, and significant tenant improvement allowances. Sitting on a 4.78-acre lot, the building offers a parking ratio of 5.1/1000, with 200 surface parking spaces.

7111 E 21st Street is approximately 70% leased by anchor tenant Primary Care Associates (“PCA”) through November 2027. The remaining occupied spaces are leased by a physical therapy provider and a medical services coordinator. PCA has delivered family medicine to the Wichita metro for over 20 years by providing complete primary care and preventative medicine throughout the lifetime of their patients. Representing their sole location, Primary Care Associates signed an initial 15-year lease at the Property in 2012, then signed an expansion in 2016 to reach their current footprint. PCA can refer patients to services provided by other tenants in the building for physical therapy and healthcare services, providing exceptional synergy.

7111 E 21st Street is strategically located along the Rock Road artery with access from Highway 96, just one mile from Wesley Woodlawn Hospital & ER (HCA Healthcare - NYSE: HCA). Renowned for world-class emergency care, imaging and diagnostic care, Wesley treats over 24,000 patients and delivers more than 5,000 babies annually, more than any hospital in a 13-state region. Businesses can also find opportunities for referral and collaboration at the Wesley Medical Center, the area’s largest healthcare hub with 760 beds, just four miles away.
Property is being listed by Keith Baker | CBRE | KS License #00019315