Oak Street NNN

• ​Backed by CVS Health: Oak Street Health was acquired by CVS Health in 2023 for approximately $10.6 billion and now operates as a wholly owned subsidiary, providing significant financial backing and enhanced tenant credit quality.
• ​Strategic National Expansion: Oak Street Health operates more than 230 centers nationwide and continues to expand its footprint serving Medicare-eligible patients through its value-based care model.
• ​Mission-Critical Healthcare Location: The Indianapolis clinic serves a densely populated urban trade area and provides essential primary care services to local seniors.
• ​Long-Term Lease with Rent Growth: The lease has approximately 12.4 years of remaining term, with scheduled 10% rent increases every five years and two 5 year renewal options. This provides investors with a growing income stream secured by a long term lease, while offering additional upside through future rent escalations and extension options.
• ​Ideal 1031 Exchange Opportunity: The combination of a 6.75% cap rate, long term NNN lease structure, and stable cash flow provides investors with a passive, management light investment. Scheduled rent increases further enhance the opportunity by offering income growth over time while helping to hedge against inflation.
• ​Established National Healthcare Tenant: Oak Street Health is one of the nation's leading value based primary care providers, operating a rapidly expanding network of clinics across the country. The company's continued investment in new locations, patient growth initiatives, and healthcare infrastructure demonstrates a long term commitment to serving its communities and supporting the ongoing expansion of its platform.
• ​Strong Infill Indianapolis Location: Located at 711 E. 38th Street, the property benefits from strong visibility, accessibility, and proximity to surrounding residential communities.
• ​Favorable Market Fundamentals: Indiana's growing Medicare eligible population and continued adoption of Medicare Advantage plans create a supportive operating environment for Oak Street Health's value based care platform. Because Oak Street's model is centered on managing the total cost of care for Medicare Advantage beneficiaries, these demographic and reimbursement trends help support the long term viability of its clinics.
• ​Growing Indianapolis MSA: The Indianapolis MSA has added more than 100,000 residents since 2020, making it one of the fastest growing metropolitan areas in the Midwest and reinforcing the market's strong long term economic and demographic fundamentals.
• ​Strategic Midwest Healthcare Market: As the largest metropolitan area in Indiana and a major healthcare hub for the Midwest, Indianapolis offers strong healthcare infrastructure, a broad referral network, and favorable demographics that support continued demand for outpatient medical services.
• ​Fee Simple Ownership: The offering includes fee simple ownership, providing investors full ownership of the real estate.
• ​Stable Cash Flow from Essential Healthcare Real Estate: Healthcare real estate continues to benefit from favorable demographic trends and resilient demand across economic cycles.

Matthews™ Healthcare Division is pleased to offer the opportunity to acquire a freestanding, single-tenant Oak Street Health clinic located at 711 E.​ 38th Street in Indianapolis, Indiana.​ Constructed in 1993, the property consists of a 12,424-square-foot medical facility situated on 1.33 acres and is 100% occupied by Oak Street Health MSO, LLC.​ The asset is secured by a long-term lease with approximately 12.4 years remaining, featuring 10% rental increases every five years and two 5-year renewal options, providing investors with durable cash flow and contractual rent growth.​

The tenant, Oak Street Health MSO, LLC, is a wholly owned subsidiary of CVS Health (NYSE: CVS).​ Acquired by CVS Health in a $10.6 billion transaction in 2023, Oak Street Health operates more than 230 primary care centers nationwide and continues to expand its footprint serving Medicare-eligible adults through its value-based care model.​

Strategically located within a densely populated Indianapolis corridor, the property benefits from strong surrounding demographics, established residential neighborhoods, and convenient access to major transportation routes.​ Offered at a 6.75% cap rate and backed by a nationally recognized healthcare operator, this investment presents an attractive opportunity for investors seeking stable passive income, inflation-protected rent growth, and the security of essential healthcare real estate.​