Class-A Surgical Clinic in Fort Worth

An existing 12,000 square foot residential structure at 7100 Boulevard 26, Fort Worth, Texas, to be fully remodeled and renovated into a modern, Class-A surgical clinic. The renovation encompasses the complete 12,000 square foot footprint at $79.50 per square foot, yielding a total renovation cost of $954,000, with property acquisition settled at $1,125,000, bringing the total project cost to $2,079,000, fully financed through a 30-year mortgage at 8% interest. Of the total area, 10,000 square feet will be configured as premium rentable clinical space at $2.00 per square foot per month, with the remaining 2,000 square feet dedicated to common areas, reception, corridors, and support infrastructure. The facility will be equipped with all amenities expected of a modern surgical center, including operating suites, sterile processing areas, recovery rooms, ADA-compliant patient access, advanced medical infrastructure, and professional clinical finishes throughout.

Financial Breakdown:  
The project is single ownership, where the revenue source is from the occupant (the company that will operate the center). The establishment already has $1.125M worth of investments from multiple owners, and they will be immediately paid back at full before the renovation takes place. A 30-year mortgage of $2.08M will be taken at 8.00% interest rate. The payments will follow a capital repayment structure. The distributable cash flows will be enjoyed entirely by the property owner. The Unlevered IRR of the project is 9.30% and the Levered IRR is 22.93%. A total of $1.92M of debt will be paid back if the property is transferred to a new owner after the 7th year of operation.