Stan Johnson Co Sells Vineland, NJ Healthsouth Property
VINELAND, NJ—Stan Johnson Company has completed the sale of a 37,660 SF Vineland, NJ, medical property to Lexington Realty Trust for $19.1 million. Located at 1237 W. Sherman Ave. in Vineland, NJ, the property is two miles from New Jersey Route 55, along a heavy medical corridor 40 miles south of Philadelphia. The facility is leased to HealthSouth Rehabilitation Hospital of South Jersey and is guaranteed by HealthSouth Corporation, the largest owner and operator of inpatient rehabilitation hospitals in the United States.
Camille Renshaw, CCIM, and David Bailey of Stan Johnson Company’s New York office represented the seller, a New Jersey medical developer, in this transaction. The property is under a 40 year lease with approximately 29 years remaining.
The sale boasted a +/-5.8% cap rate, based on 2014 NOI, Johnson Company says in a press release. The most compressed cap rate previously reported by CoStar for a rehabilitation hospital leased by a Healthsouth entity nationwide was +/-6.43%. That sale was for a hospital located in Everett, WA, and closed in 2003.
“The current demand for stabilized, quality real estate is much greater than the supply,” says Camille Renshaw. “Through an intense and competitive marketing effort to both 1031 exchange buyers and institutional purchasers, we were able to tap into that demand and deliver great pricing for our Seller.”