BELLAIRE MEDICAL PLAZA

BELLAIRE, TEXAS

Asset/Strategy Type

Medical Office/Value-Add

Capital to be Raised

$3,010,000

Minimum Investment

$50,000

Targeted IRR

± 19.4%

Asset/Strategy Type

Medical Office, Value Add

Capital to Be Raised

$3,010,000

Minimum Investment

$50,000

Targeted IRR

± 19.4%

Additional

Information

Targeted IRR:
± 19.4%

Targeted Equity Multiple on Exit:
± 2.77x

Targeted Avg. Cash-On-Cash:
± 7.5%

Preferred Return:
9%

Profit Split:
75% to investors / 25% to Manager

Targeted Hold Period:
7 years

Offering Close Date:
March 26, 2021

INVEST NOW

REQUEST OFFERING MEMORANDUM

* There is no guarantee that targeted returns will be met or that preferred return payments will be made.

Fairway America is making available an ownership investment opportunity for Bellaire Medical Plaza, a 58,680 square foot medical office building located in Bellaire, a suburb of Houston, Texas. The Property is located approximately two and a half miles from Memorial Hermann Orthopedic & Spine Hospital, and is nearby other smaller, independent healthcare offices and facilities.

We believe the Property has been mismanaged by prior ownership and presents a unique opportunity to benefit from in-place cash flows and capture value-add returns through leasing vacancies, actively managing the rent roll, and monetizing the excess land. Fairway and Rycore Capital (“Rycore”) intend to co-manage and co-execute the business strategy for acquiring, improving, operating, and disposing of the Property.

Business Strategy*

Fairway and Rycore intend to implement a systematic strategy that targets physician referral patterns, with an end-goal of creating a network of intertwined tenants that benefit from each other’s presence in the building.

Target stabilized occupancy of 90% through implementation of a value-add improvement strategy
Strengthen the rent roll by renewing approximately 76% of the tenants in a mark-to-market rent strategy during the initial four years of the hold period and adding new tenants in this high demand area
Sell the excess land in the second year of the targeted hold period
Professionalize leasing, management and execution of operations to take advantage of well-positioned location and asset type
Generate strong cash flow during hold period and then market and sell the asset upon stabilization of the rent roll and favorable market conditions

Opportunity Highlights*

Acquiring the property at a low basis ($138 PSF) and a 7.6% in-place cap rate
Long term historical tenancy (average 8.5 years) with opportunity to fill existing vacancy. Two tenants, making up more than one-third of the leased space, have been in the building for an average of 19 years
Synergy among the existing tenant base and the nearby hospital
Upside potential from below-market leases. Limited tenant improvement cost given the existing medical office build-out of the suites
Co-Manager with a track-record in the medical office sector

* The business strategy is subject to change. There are many risks to participating in this opportunity. See “Risk Factors and Fee Disclosures” in the Offering Memorandum for a discussion of some of these risks, including loss of capital, illiquidity, and lack of diversification. This opportunity is unsuitable for investors who are not prepared to hold their ownership position indefinitely and who cannot afford a complete loss of capital.