DaVita

Highlights:

• Available Floors: 1
• Average Floor Size: 4214.0
• Average Occupancy Rate: 100.0
• Max Contiguous Area: 4214.0
• Min Divisible Area: 4214.0
• Age: 1-5 Years Old
• Lot Size: 1/2 - 1 Acre
• Sewer: City
• Water: Municipal Water

Description:

Coldwell Banker Commercial is pleased to offer qualified investors the opportunity to acquire the
fee-simple interest in a newly constructed, single-tenant medical
office facility located in Modesto (the “Property”).


The Property consists of 0.61 acres improved with a one-story, 4,214-square-foot medical office
building that was built-to-suit in 2023 to the Tenant’s exact spec-ifications. Investors may also
acquire an adjacent, vacant 0.57-acre parcel featuring designed shared parking access and expansion
flexibility. The Property is strategically positioned near the signalized intersection of Dale Road
(approximately 14,000 vehicles per day) and Kiernan Avenue (approximately 27,000 vehicles per day)
and is immediately adjacent to the region’s dominant hospital campus, Kaiser Permanente’s Modesto
Medical Center. The surrounding five-mile trade area includes approximately 129,000 residents with
an average household income exceeding $97,000 annually.


The Tenant recently completed a comprehensive build-to-suit incorporating its brand-new prototype,
representing the top tier of the kidney care industry with respect to patient experience, clinical
functionality, and energy-efficient design standards. A neighboring dialysis facility—developed as
a build-to-suit approximate-ly six years ago and owned by a third party—previously housed both
inpatient and home-health operations. Due to physical constraints within that building, the Tenant
was unable to expand its inpatient hemodialysis services. To accommodate growth, the Seller
acquired the adjacent parcel and relocated the home-health component into the newly constructed
facility, allowing inpatient operations to expand within the original building. The two
complementary facilities now house distinct functions, with supervising medical professionals able
to walk between locations.


The Property is secured by an initial fifteen-year (15-year) lease term featuring three (3)
five-year renewal options. The lease is the Tenant’s standard form used across the majority of its
national portfolio and is structured as a highly passive, landlord-favorable net lease with minimal
expense exposure due to the new con-struction. Rental increases of ten percent (10%) occur every
five (5) years throughout the term and option periods.
The lease is unconditionally guaranteed by DaVita, Inc., one of the world’s leading kidney care
providers, operating more than 2,724 outpatient clinics across 46 states and providing acute
inpatient dialysis services in approximately 850 hospitals nationwide. DaVita, Inc. is publicly
traded and ranked No. 323 on the Fortune
500. As of December 31, 2022, the company reported revenues exceeding $11.61 billion and net income
of approximately $547 million. DaVita, Inc. is credit-rated Ba3 by Moody’s Investor Services and BB
by Standard & Poor’s Rating Service. Berkshire Hathaway, led by Warren Buffett, is a long-time
shareholder and owns
approximately 38% of the company’s outstanding shares, representing one of its largest equity
positions.

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Listing ID: 175e346a-42ca-4c53-8841-22ff9528b5c8

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