For Sale
$3,728,000 | 6.50% Cap
1535 Savannah Road, Lewes, DE 19958
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Broker of Record: Brian Brockman | Bang Realty-Pennsylvania, Inc. | DE License #: RB-0020899
Investment Highlights
Recent 7-Year Lease Extension
Beebe Healthcare reaffirmed its presence through a recently executed 7-year lease extension, securing tenancy through December 31, 2034, with three additional 5-year renewal options.
Corporately Guaranteed
The lease is corporately guaranteed by Beebe Medical Group, a leading regional not-for-profit health system with an S&P credit rating of BBB- Stable, providing for reliable cash flow supported by investment-grade credit.
Minimal Landlord Obligations
The NNN lease places responsibility for all operating expenses and maintenance on the tenant other than the landlord’s financial obligations towards the structural components.
Proximity to Beebe Hospital
Located 1.6 miles from Beebe Hospital, the subject property operates as part of the system’s regional care network, supporting steady patient activity and reinforcing its essential medical use.
Strong Market Demographics
The surrounding area features robust population growth, high household incomes, and a significant retiree base, supporting sustained demand for medical services and long-term tenant stability.
| Facility Type | Building Area (SF) | Years Remaining | Net Operating Income |
|---|---|---|---|
| Single Tenant | 9,240 Square Feet |
9+ Years | $242,323 |
Overview
Peranich Huffman Net Lease Group is pleased to offer the exclusive opportunity to acquire Beebe Healthcare, located at 1535 Savannah Road in Lewes, Delaware. The 9,240 SF single-tenant medical facility is positioned on 1.54 acres and operated by a leading regional healthcare provider. Situated less than two miles from Beebe Hospital with direct access to Coastal Highway (DE-1), the subject property offers strong visibility and convenient regional connectivity. Additionally, the subject property benefits from a steadily growing coastal population including many retirement communities, bolstering the demand for specialty medical care.
Lease
The property is leased to Beebe Medical Center under a long-term triple-net lease with 9 years of term remaining, expiring December 31, 2034. The facility plays a vital role within Beebe’s outpatient care network and operates as an essential medical service provider for the Lewes–Rehoboth region. Current annual base rent is $242,323 ($26.23/SF), with fixed 3.00% annual increases through 2028, and 2.50% annual increases thereafter. The lease includes three (3) 5-year renewal options, each offering continued escalations, providing predictable rent growth and reinforcing income stability with minimal landlord obligations.
Tenant
Beebe Healthcare (S&P: BBB- Stable), a respected not-for-profit health system, is the parent entity of Beebe Medical Center and a key provider of acute and specialty care for Delaware’s coastal communities. Recognized by U.S. News & World Report as a “Best Regional Hospital,” the organization operates multiple hospitals, outpatient centers, specialty clinics, and a nursing school. With its established market presence, essential healthcare services, and strong operational foundation, Beebe Healthcare offers a long-term investment opportunity supported by a mission-driven operator.