DaVita Dialysis

830 Fairgrounds Road, Winnemucca, NV

$2,548,000

Price

6.77%

Cap Rate

$172,536

NOI

Overview
Cap Rate
6.77%
NOI
$172,536
Building Size
5,928 sqft
Lot Area
0.78 acres
Occupancy
100%
Year Built
2011
Description

Nevada Broker of Record: Allie T. Bear | Allie Bear Real Estate LLC | License #: B.0007000

Overview
Peranich Huffman Net Lease Group is pleased to offer for sale, the single tenant, freestanding DaVita Dialysis of Winnemucca, NV. Offered at a 6.77% 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
With DaVita Dialysis beginning a 15-year lease term in 2012, the lease currently has 6 years of lease term remaining with 2.5% annual rent escalations throughout the remainder of the term. Additionally, the lease provides for (3) 5-year renewal options at a rate of the lesser of fair market value or CPI (capped at 3%).

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

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.
  • RENTAL RATE ESCALATIONS - The DaVita Dialysis lease provides for base rental rate escalations of 2.5% annually throughout the remainder of the term offering as a generous hedge against inflation.
  • MINIMAL LANDLORD RESPONSIBILITIES - The tenant is responsible for all expenses relating to the HVAC, interior/non-structural elements of the building, insurance, property taxes, utilities, waste management.
  • FACILITY LOCATION - Located less than a half-mile away from the DaVita Dialysis of Winnemucca, NV, Humboldt General Hospital – a 67-bed hospital offering various medical services in addition to an Emergency Department serves the residents of northern Nevada and has done so for over 100 years.
  • STRONG DEMOGRAPHICS - Within a 3-mile radius of the DaVita Dialysis of Winnemucca, NV, the average household income is $98,358 (2020) and is expected to increase by an estimated 12.7% in five years.
  • NON-INCOME TAX STATE - As of 2020, seven states - Alaska, Florida, Nevada, South Dakota, Texas, Washington, and Wyoming levy no personal income tax.
Documents

Location