BearRock Investments LLC
110 Cliff Medical Bldg
110 W Cliff Dr, Spokane, WA 99204
~ 3-5 year hold, Targeting 15% IRR
Active
Purchased building with ⅓ vacancy and working to sign long term leases with tenants and fill the vacancy with this class A medical space
Project Type | Source | Size | Acquisition Price | Sale Price |
|---|---|---|---|---|
Medical lab, medical office, medical clinic space | Industry relationship, on the market | 70,274 square feet | $5,850,000 | Targeting $12,000,000 but not yet sold. |
BearRock Investments purchased the 70,274 square foot medical lab building from Providence Hospital in July, 2024. The building is a fully improved lab and medical office building on 3.08 acres of land, across the street from Spokane’s central hospital district which is anchored by Providence/Sacred Heart Hospital serving the Inland Empire including Eastern Washington, Northern Idaho, Western Montana and Southern Alberta. The building is 57% leased by Labcorp, one of the nation’s largest, publicly traded lab companies and 10% leased by Providence Hospital for use as lab facilities. The balance of the building (~21,000 square feet) was vacant and available for lease at the time of purchase.
BearRock purchased the building for $5,850,000, or just $83.00 per square foot, including the 3.08 acres of land. BearRock raised $6.9M to purchase the project with all cash, no debt and overcapitalized to cover the costs of tenant improvements and building exterior improvements. The project cash flows at over a 7% annualized return even with no additional leasing in the building. Cash flow will improve to over 13% annually with additional lease-up of the building. Upon acquisition, the BearRock team initiated a cold-calling campaign of medical users and quickly generated interest to lease the balance of the building. BearRock plans to sell the building upon completion of building lease-up, or alternatively, will place conservative debt on the property resulting in significant equity return to investors and significant cash flow on the remaining equity in the investment.
