Overview

Description

Overview
Peranich Huffman Net Lease Group is pleased to offer for sale, the Fresenius Medical Care (Dark) located in Hartsville, SC. Built in 2003, the 6,720 SF former dialysis clinic is currently unoccupied; however, the tenant has been paying rent and fulfilling all obligations of the lease since its commencement in 2004.

Net Lease Structure
The Fresenius Medical Care lease contains a net lease structure that provides for minimal landlord responsibilities. A potential investor will benefit from 1.25 years of guaranteed income, while having the opportunity to reposition the asset through reletting and/or obtaining an early lease buyout.

Lease Term
In 2011, Fresenius Medical Care executed a 14-year lease extension at the Hartsville, SC location. Currently, the tenant has 1.25 years of lease term remaining at an annual rental rate of $134,198 for the remainder of the lease term. The lease is backed by a corporate guarantee from Fresenius' parent company, Fresenius Medical Care Holdings, Inc.

About The 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 of $22.5+ billion and holds S&P’s Investment Grade credit rating of “BBB-”. Through its network of 4,000+ dialysis clinics, Fresenius Medical Care provides dialysis treatments approximately 344,000 patients around the globe.

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Highlights

• Strategic Location - Situated at the intersection of U.S. Route 15 and South 4th Street, the property offers connectivity to both Downtown Hartsville and Interstate-20. The prime location ensures convenient accessibility to both residents and commuters alike. Major retail giants such as Walmart, Dollar Tree, and Big Lots are all within a 2-minute drive time, enhancing its appeal for potential future tenants.
• Value-Add Positioning - Secured under a lease with Fresenius' corporate parent until the summer of 2025, the property guarantees immediate income, despite its current vacancy. This arrangement presents a unique opportunity for both investors and end-users by offering flexibility to strategize re-leasing or negotiating an early lease termination.
• Offered Below Replacement Value -Priced at only $190 per square foot, the offering affords the opportunity to purchase far below replacement cost; therefore, creating a stable foundation for future appreciation mitigating future risk.
• Corporately Guaranteed Investment - The lease is backed by a corporate guarantee from the tenant’s parent company, Fresenius Medical Care Holdings, Inc., bringing security to the investment. The company's creditworthiness is underscored by an investment grade rating of BBB- from Standard & Poor's, indicating a stable outlook. This rating reflects the tenant’s strong capacity to meet its financial commitments, ensuring a reliable income stream for the remainder of the lease term.
• Low Rent Per Square Foot - The property's rental rate of $19.97 per square foot annually presents a competitive advantage for the landlord. This not only draws a diverse tenant mix, but also provides room for rental rate increases, thereby positioning the property for future revenue growth.

Documents

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