Overview

Description

OVERVIEW
Peranich Huffman Net Lease Group is pleased to offer for sale, the single tenant, freestanding DaVIta Dialysis of Floresville, TX. Offered at a 8.00% capitalization rate, the offering provides an investor with the opportunity to acquire a property with a strong operation that is home to a national medical tenant that exemplifies a reputation of consistency for both patients and the real estate investment community.

LEASE TERM
In 2019, DaVita Dialysis signed a 5-year lease extension resulting in a new lease expiration date of 8/31/2024. Currently, the DaVita lease has 3+ years of term remaining with 2% annual escalations. Looking forward, the tenant has the option to exercise (3) additional 5-year term extensions with rent escalations of 3% annually.

NET LEASE STRUCTURE
The lease is structured on a net basis, whereby the tenant is responsible for all expenses relating to the HVAC, parking lot, interior/non-structural elements of the building, landscaping, insurance, property taxes, utilities and waste management. The landlord is responsible for expenses relating to the building's exterior walls, foundation and roof.

INVESTMENT GRADE TENANT
DaVita Inc., a Fortune 500® company, is the parent company of DaVita Kidney Care and HealthCare Partners, a DaVita Medical Group. DaVita Kidney Care is a leading provider of kidney care in the United States, delivering dialysis services to patients with chronic kidney failure and end stage renal disease.

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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.
• GUARANTEED LEASE - The lease is backed by DaVita’s largest wholly-owned subsidiary, Total Renal Care, Inc. Operating in 37 states with $5.5+ billion in assets, Total Renal Care, Inc. is a direct operating subsidiary of DaVita, Inc.
• RENTAL RATE ESCALATIONS - The DaVita Dialysis lease provides for 2% annual escalations in base rent throughout the remainder of the lease term and 3% annual escalations in each year of the (3) 5-year option periods.
• FACILITY LOCATION - Located within a half-mile from the DaVita Dialysis of Floresville, TX, Connally Memorial Medical Center, a 44-bed, state-of-the-art acute care facility, serves as the primary hospital for Wilson County residents.
• NON-INCOME TAX STATE - As of 2021, seven states - Alaska, Florida, Nevada, South Dakota, Texas, Washington, and Wyoming levy no personal income tax.

Documents

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