King of Prussia (Merion)
Category: Medical Office Buildings
King of Prussia Medical Office Building is an off-campus medical office building located approximately 10 miles east of Phoenixville Hospital, a 151-bed acute care hospital that opened in 1893. Located in King of Prussia, Pennsylvania, the three-story property consists of 73,329 square feet and is approximately fifteen miles northwest of downtown Philadelphia in Montgomery County. Completed in 1946 and renovated in 2000, Prussia Medical is situated on 5.24 acres of land and is directly adjacent to Interstate 76, a major eastwest thoroughfare linking Philadelphia to Pittsburgh. The prominent location off of Interstate 76 gives the tenants viable access to any services needed at the Phoenixville Hospital. Prussia Medical is 95% leased to nine tenants, the two largest of which are The Philadelphia Hand Center and Main Line Spine. The Philadelphia Hand Center leases 23,209 square feet, or 32% of the rentable square footage through March 2018. Main Line Spine leases 19,518 square feet, or 27% of the rentable square footage through January 2021. In total, approximately 50,200 square feet, or 68% of the current leased space at the Property, have term through March 2018 or later. Phoenixville Hospital, which leases 5,333 square feet, or 7% of the rentable square footage through October 2023, is a member Community Health Systems, Inc., a “B1” Moody’s-rated health system headquartered in Brentwood, Tennessee. All of the tenants reimburse their prorate share of operating expenses through base stop leases and each of the tenants has annual rental increase of $0.50. Combined, the weighted average remaining lease term for the building is 4.9 years. Prussia Medical will be acquired fee simple.