Fresenius Medical Care

185 Laurel Creek Road, Fayetteville, WV

$1,800,000

Price

6.57%

Cap Rate

$118,243

NOI

Overview
Cap Rate
6.57%
NOI
$118,243
Building Size
6,671 sqft
Lot Area
1.5 acres
Occupancy
100%
Class
A
Year Built
2007
Floors
1
Description

West Virginia Broker of Record: Jim Lively | Century 21 | License #: WV0009633

OVERVIEW
Peranich Huffman Net Lease Group is pleased to offer for sale, on an exclusive basis, the single-tenant Fresenius Medical Care located in Fayetteville, West Virginia. Constructed on a built-to-suit basis Fresenius in 2007, the 6,671 square foot facility resides on a 1.5 acre parcel. Offered at a 6.57% capitalization rate, the offering provides an investor with the opportunity to acquire a property with a strong operation within a Certificate of Need state.

LEASE TERM
Demonstrating a commitment to the location, Fresenius exercised an early lease extension in 2017, resulting in 5.9 years of current term remaining. The lease contains 1.5% annual escalations in base rent that continue throughout the remainder of the term. Additionally, the lease provides for (2) 5-year option periods, with escalations set to the lesser of fair market value or 110% of base rent from the prior year.

NET LEASE STRUCTURE
The double net lease structure provides for the tenant’s direct responsibility for the expenses associated with the parking lot, interior/non-structural elements of the building, HVAC (up to $2,200), landscaping, insurance, property taxes, utilities, and waste management.

INVESTMENT GRADE TENANT
Fresenius Medical Care is the largest provider of renal care in both the United States and across the world. Fresenius has a net worth exceeding $22.5 billion and holds S&P’s Investment Grade credit rating of “BBB Stable”.



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Highlights
  • "ESSENTIAL BUSINESS" INVESTMENT - Given current market conditions, the importance of owning essential business assets have become paramount. Unlike tenants outside of the medical sector who are challenged to maintain cash flow, dialysis facilities have not been impacted by the ongoing disruptions.
  • RENTAL RATE ESCALATIONS - Offering as a generous hedge against inflation, the Fresenius Medical Care lease provides for base rental rate escalations of 1.5% annually throughout the remainder of the term.
  • MINIMAL LANDLORD RESPONSIBILITIES - The tenant is responsible for all expenses relating to the parking lot, interior/non-structural elements of the building, HVAC (up to $2,200) landscaping, insurance, property taxes, utilities, and waste management.
  • CERTIFICATE OF NEED STATE - As a participant in the certificate of need program, the state of West Virginia regulates the construction and operations of new dialysis facilities. This creates a high barrier of entry for competition that benefits landlords.
  • CORPORATELY GUARANTEED - The lease is backed by a corporate guarantee from Fresenius’ parent company Fresenius Medical Care Holdings, Inc.
Documents

Location