Overview

Description

Michigan Broker of Record: John De Wald | P.A. Commercial | License #: 6502370672

OVERVIEW
Peranich Huffman Net Lease Group is pleased to offer for sale, the single tenant, freestanding DaVIta Dialysis of Chesterfield, MI. Offered at a 5.85% 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
Showing a commitment to the location, DaVita recently exercised an early lease extension. The corporately guaranteed lease currently has 10+ years of lease term remaining, with a 10% rental rate escalation in 2026 and in each of the (3) 5-year option periods.

NET LEASE STRUCTURE
The lease is structured on a net basis, whereby the tenant is responsible for all expenses relating to the roof, 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 and foundation.

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 significantly impacted by the ongoing disruptions.
• STRONG DEMOGRAPHICS - The DaVita Dialysis of Chesterfield, MI is located in a market totaling over 485,000 in population with 190,000+ households (10-mile radius). Additionally, average household income in 2020 is $84,211 and is estimated to increase by 11.4% in 2025.
• RENTAL RATE ESCALATIONS - Beginning in 2026, the DaVita lease provides for a 10% increase in base rent. This 10% increase in base rent continues every 5 years throughout the remainder of the lease term and option periods.
• MINIMAL LANDLORD RESPONSIBILITIES - The tenant is solely responsible for any expenses related to the roof, HVAC, parking lot, interior/non-structural elements of the building, landscaping, insurance, property taxes, utilities and waste management.
• LOW PRICE PER SQUARE FOOT - In consideration of the low rent associated with the DaVita Dialysis lease, the property is offered at $302 per square foot.
• CORPORATELY GUARANTEED - The DaVita Dialysis lease is backed by a corporate guarantee from DaVita, Inc., a Fortune 500® company and the leading provider of kidney care in the United States.

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