1. PM Pediatric Care, founded in 2005, is the nation’s largest provider of specialized pediatric urgent care. As of July 2024, the company operates nearly 90 offices across 15 states, including 13 locations in Florida. The size and stability of the operator enhance the security of the investment.
2. In June 2023, PM Pediatric Care secured $50 million in Series E funding led by Scopia Capital and Jefferson River Capital, bringing its total funding to over $140 million. This capital is intended to accelerate the expansion of its urgent care network. The continued investment in the tenant and its strategic growth strengthens the value of the asset.
3. The United States pediatric market size was estimated at $12.46 billion in 2022 and is expected to grow at a compound annual growth rate of 7.86% from 2023 to 2030. According to the National Survey of Children with Special Healthcare Needs, nearly one in five children have special healthcare needs, totaling 14.1 million children.
4. Surrounded by various neighborhoods and schools, this property is ideally situated to serve the local community and provides convenient access to care for the 265,000 residents within a 5-mile radius.
5. Adding approximately 1,000 new residents per week, Orlando is the second-fastest-growing major MSA in the country, with an annual year-over-year population growth of roughly 2%. The area’s continued growth, coupled with its existing infrastructure, enhances the long-term value of the property due to the desirable market.
6. Having successfully operated at this site for over 10 years, this location has become established as a cornerstone of the local medical community. Recently, in the summer of 2024, the practice was acquired by PM Pediatric Urgent Care as part of the organization’s strategic expansion into the Florida market.
7. Advantageous Return – This investment will allow an investor to realize a year-one cap rate of 8.6%. This return is increasingly important in today’s fluctuating interest rate environment.
8. 3% Annual Rent Increases – The property features above-market annual rent escalations, which help protect against inflation and increase the likelihood of the investment’s profitability, even in an ever-changing market.
9. “Sticky” Tenant – Healthcare practices tend to be exemplary tenants due to their typical long-term tenancy, high-cost buildout, favorable rental rates, and resistance to economic downturns and consumer trends.
Broker of Record
Kyle Matthews
License No. CQ1066435 (FL)