CSRA ECU MOB, DST
The Property is located within University Medical Park in the Medical District on Stantonsburg Road (US 264) near its intersection with Arlington Boulevard. This heavily travelled road has an average daily traffic count of more than 25,000 cars. The Property is in walking distance to Vidant Medical Center. The Medical District is situated on the west side of Greenville, approximately 3 miles from Greenville’s central business district.
The Medical District includes the highly rated Vidant Medical Center (formerly Pitt County Memorial Hospital), ECU Brody School of Medicine, the VA Supercenter Medical Clinic, East Carolina Heart Institute, ECU Health Science Campus, ECU Dental School and the Children’s Hospital of Eastern North Carolina. In addition, there are many private medical practices and clinics throughout the Medical District.
Vidant Medical Center and East Carolina University are two of the largest employers in Greenville, where the economy is largely based on healthcare and education. Vidant Medical Center serves over 1.2 million residents, hosts over 1700 licensed medical providers and, in 2011, began a $48 million expansion project slated for completion in July 2013. East Carolina University is the third largest university in North Carolina. It encompasses approximately 1600 acres with over 27,000 students. The Brody School of Medicine was ranked 10th in the country for primary care physician preparation, 14th in family medicine, and seventh on the social mission scale by U.S. News & World Report.
Located in eastern North Carolina, the Greenville MSA is a rapidly growing, diversified employment and service center. The population increased by 23% between 1990 and 2000 and it continued to grow another 34% between 2000 and 2009. Greenville is North Carolina’s tenth largest city with a population of 84,554. In 2012, Greenville was listed in the top ten of “Best Small Places for Business and Careers” by Forbes Magazine and Vidant Medical Center was named on the list of “Best Regional Hospitals” by U.S. News.
- The Sponsor is newly formed.
- There are various risks associated with owning, financing, operating, and leasing real estate in Greenville, North Carolina.
- The Interests do not represent a diversified investment.
- The ECU Physicians lease contains an “appropriation clause” that could lead to early termination.
- Beneficial Owners must completely rely on the Master Tenant under the Master Lease and the Property Manager to collect the Rent and operate, manage, lease, and maintain the Property.
- If ECU Physicians do not renew or extend its lease, or terminates or defaults on its lease, the operating results of the Property could be adversely affected by the loss of revenue and Beneficial Owners could lose the future benefits of Section 1031.
- The Beneficial Owners have no voting rights with respect to the management or operations of the Trust or in connection with the sale of the Property.
- The Master Lease is a long-term lease.
- There are various conflicts of interest among the Trust, the Property Manager, the Sponsor, the Signatory Trustee, and their Affiliates.
- The Interests are illiquid.
- There are tax risks associated with an investment in the Interests.
- There are risks related to competition from properties similar to and near the Property.
- There may be environmental risks related to the Property.
A two-story, Class A medical office building that was built in 1989 and renovated in 2008 and 2012