Sparrow Health System Credit Rating & NNN Cap Rate Analysis

UM Health-Sparrow Business Overview

Sparrow Health System, based in Lansing, joined University of Michigan Health effective April 1, 2023, and now operates as UM Health-Sparrow. It runs UM Health-Sparrow Lansing and community hospitals in Carson City, Charlotte, Ionia and St. Johns, and says it has more than 150 sites of care across Mid-Michigan.

UM Health-Sparrow Credit Profile

Our database links UM Health-Sparrow to the Regents of the University of Michigan, whose general revenue bonds are rated AAA/Aaa (S&P / Moody’s), according to the University’s investor relations site. Those ratings apply to a lease only when the Regents sign or guarantee it. Leases signed by Sparrow entities before the 2023 combination may still be obligations of those entities, so confirm the lease obligor and any guarantee on every property.

Ratings come from our tenant ratings database and update when agencies change them. A rating at or above BBB‑/Baa3 is investment grade; see the investment grade guide.

Source: S&P Global Ratings AAA, Stable, as of August 28, 2026; Moody’s Aaa, Stable, as of August 25, 2026. Ratings checked October 8, 2026.

UM Health-Sparrow NNN Cap Rates

Live asking cap rates for UM Health-Sparrow and comparable tenants:

Active listings InvestmentGrade.com tracks with an asking cap rate (stated in the listing, or computed from its stated income and price when no rate is stated), listings last observed October 12, 2026. Asking cap rates are not closed-sale cap rates. The middle half is the range from the 25th to the 75th percentile of listings. The 10-year Treasury yield is 5.24% as of October 1, 2026 (FRED series DGS10). Ratings are the agency ratings in our ratings database for the entity shown, which may be a parent company; the rating type (for example issuer, senior unsecured debt, long-term debt or revenue bond ratings) varies by company and is shown on each tenant page. A rating applies to a lease only if the rated entity signs or guarantees it, so confirm the tenant and any guarantor in the lease. n/a means no verified rating is on file. Not shown because fewer than 3 active listings with a published cap rate were observed: UM Health-Sparrow, Oak Street Health.

Our listing data often has too few properties leased to UM Health-Sparrow to show a reliable median; as of October 8, 2026, listings we track included none. The table shows healthcare tenants with enough listings. Compare an offering with recent sales leased to rated health systems with similar terms.

What to Check in a UM Health-Sparrow Lease

• Obligor: whether the lease is signed by the rated system, a hospital subsidiary, an affiliated physician group or a joint venture, and whether the rated parent guarantees it.
• Term and rent: remaining term, renewal options and the rent schedule; rent increases vary by lease.
• Site role: whether the building is on or near a hospital campus and how central it is to the system’s local network; systems can close, consolidate or relocate individual sites.
• Lease type: net, modified gross or full service; who pays for the roof, structure and building systems.
• Re-use: how much of the medical build-out another provider could use.

Pros and Cons

Sources: UM Health-Sparrow “About” page (uofmhealthsparrow.org), accessed October 2026; “U-M Health, Sparrow join to deliver world class healthcare” (April 3, 2023); ratings from InvestmentGrade.com’s ratings database, checked against the University of Michigan investor relations ratings page (General Revenue Bonds).