DaVita Dialysis of Gary, IN

4802 Broadway, Gary, IN

$3,337,000

Price

7.85%

Cap Rate

$261,926

NOI

Overview
Cap Rate
7.85%
NOI
$261,926
Building Size
13,125 sqft
Occupancy
85.36%
Class
B
Year Built
1992
Description

INVESTMENT OVERVIEW. Peranich Huffman Net Lease Group is pleased to offer for sale, the DaVita Dialysis of Gary, Indiana. The 13,125 square foot freestanding, net leased medical office building is located on one of the main thoroughfares of downtown Gary and Merrillville, Indiana. Comprised of 40 patient stations operating 6 days a week, the practice benefits from a substantial patient count, performing over 330 procedures per week.

LEASE TERM. Commencing in 2012, DaVita Dialysis occupies approximately 85% of the total rentable area and recently signed a 5-Year lease extension. The lease calls for 2% annual rental rate escalations in both the primary term and all (3) 5-year option periods. The Lessee, TRC – Indiana, LLC, is a wholly owned subsidiary of DaVita, Inc., one the fastest growing corporation on the Fortune 200 list. DaVita’s 2018 revenues exceeded $11 Billion, holding an investment grade Ba2 credit rating from Moody’s. DaVita currently treats 42% of all dialysis patients throughout the United States.

NET LEASE STRUCTURE. Offered at a 7.85% capitalization rate, the facility provides for a stable recession proof opportunity, occupied by a national medical tenant with a reputation for consistency, and ample upside through the leasing of available space.

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Highlights
  • Strong Performance Metrics – Over 330 Patient Procedures per Week
  • Value Add Opportunity – Ample Upside through Leasing of Available Space
  • Exceptional Population Counts – 143,000 residents within a 5-Mile Radius
  • Scheduled Rent Increases – 2% Annual Escalations in primary term/option periods
  • Net Leased Investment - Minimal Landlord Responsibilities
  • Located on a Main Thoroughfare - 29,000 Vehicles Per Day (VPD)
Documents

Location