Investment Overview

This property presents an attractive investment opportunity as a DaVita Dialysis and Dunkin’ anchored center with multiple value-add elements. Dunkin’ occupies an out-lot on a corporate NNN ground lease with 15 years of term remaining. The lease includes scheduled 12.5% rental increases every five years, including options. Meanwhile, DaVita operates under a double net lease with a firm term of 4.5 years remaining and scheduled 2.75% annual rental increases, inclusive of option periods. Both tenants are long-term operators, with Dunkin’ established at the center since 2004 and DaVita since 2014. Additional value can be unlocked by leasing out 16,128 vacant square feet, enhancing income potential. Dunkin’ sits on a separate parcel, allowing a new owner to sell it individually for cap rate arbitrage. Dunkin’s recent execution of three five-year options in 2023 indicates strong commitment to this site. The location also benefits from a recent interior remodel and features a drive-thru, which boosts the site's appeal and flexibility for current and future tenants. The property includes a high-volume DaVita hemodialysis clinic operating six days a week, Monday through Saturday, from 4 am to 4:15 pm across two shifts with 32 chairs. Located in a certificate of need state for kidney dialysis treatment centers, the clinic is positioned for steady demand. Visibility is high along a well-trafficked road, with 480 feet of frontage on South Stony Island Avenue, seeing 33,700 vehicles daily, and is close to the busy South Stony Island Avenue and East 87th Street intersection, which experiences a combined traffic count of 48,500 vehicles per day. The center is strategically located near two major hospitals: Advocate Trinity Hospital (1.6 miles away, with 205 beds and 749 physicians) and South Shore Hospital (1.8 miles away, with 137 beds). This site is situated in a densely populated Chicago neighborhood, with nearly 24,000 residents within a one-mile radius and 217,044 residents within three miles. Moreover, the area has a robust workforce, with approximately 20,790 employees within a one-mile radius.