1112 Gene Reed Rd Birmingham, AL 35235

This property is a medical office building occupied by a vascular surgery center, recently acquired by a local hospital group. The property is under an absolute NNN lease, which commenced on October 6, 2021, for a 10-year term. The lease includes 2% annual rent increases. The current annual rent is $244,077.79. Following the initial 10-year term, there are five renewal options, each for a period of 3 years. The tenant is responsible for all operating expenses, including structural repairs. The property is situated on a 1.21-acre lot. The building has a total area of 8,696 square feet. Experts estimate that medical office buildings generate a higher percentage of bonus depreciation than other investment types, typically in the 40% to 60% range. Based on an 80% improvement to total property ratio, first year bonus depreciation would be in the range of $1,593,000 to $2,390,400. Buyers must confirm with their own tax professionals. The property is located in Birmingham, Alabama.