Fresenius Dialysis in Decatur, Alabama with 12.5 Years Left

For Sale

Offering Memorandum

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Overview

Overview

  • Price: $4,655,000
  • Cap Rate: 5.75%
  • Cap Rate in 2.5 Years: 6.3%
  • Building Size: 7,381 sf
  • Years Left: 12.5 Years
  • Lot Size: 1.34 Acres

Highlights

  • Strong recession proof anchor tenant with approximately $22 Billion in annual revenue and largest operator of outpatient dialysis clinics worldwide with 2.5 Million patients and 3,432 clinics
  • Located on a two blocks south of Route 67; an out-parcel to a WalMart Supercenter
  • Outstanding demographics for use
  • Loan is assumable (at Buyer’s option) – 2.5 years left at 3.89%.
  • Alabama is a Certificate of Need (CON) state, creating significant barriers to entry for competition
  • Over 30 nursing homes within a 10 mile radius and the next closest Fresenius clinic is more than 20 miles away
  • Other local retailers include Home Depot, Academy Sports, Planet Fitness, Hobby Lobby, Arby’s, Starbucks, Buffalo Wild Wings, Dollar Tree, Zaxby’s, and Steak N’ Shake.
Description

Description

SVN and Real Asset Management Partners is proud to present 2834 Spring Ave SW in the Hunstsville, Alabama MSA. The property is a net-leased passive investment opportunity which includes a 7,381 square foot medical office property leased to Fresenius Medical Care with 12.5 years remaining. There are three, five-year options at the end of the lease. The property is benefited by ten percent rent increases every 5 years, which would put the cap rate in 2.5 years at 6.3%. The lease is corporately guaranteed by Fresenius Medical Care Holdings.

This site has met Fresenius’ specific criteria for stable economic growth, strong demographics and high entry barriers for future competitors. Alabama, being a Certificate of Need (CON) state, prevents construction of excess hospital facilities, and makes this property an attractive investment in the area of medicine that’s both necessary and underserved. There are multiple nursing homes within a five-mile radius. The site benefits from being the only major Dialysis clinic in the city of Decatur.

Fresenius Medical Care North America is a major provider of kidney dialysis services and renal care products. Fresenius provides products, dialysis care services, education and support for Chronic Kidney Disease (CKD), including treatment options for later stage CKD. Fresenius is a publicly traded company (NYSE: FMS) with a market capitalization in excess of $23 billion. Fresenius is an investment grade rated company with a Standard & Poor’s rating of BBB-.

Location

Location

The information presented here is deemed to be accurate, but it has not been independently verified. We make no guarantee, warranty or representation. It is your responsibility to independently confirm accuracy and completeness. SVN®, Sperry Van Ness®, and Sperry Van Ness Commercial Real Estate Advisors® are registered service marks of Sperry Van Ness International Corporation.

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