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Single-Tenant Office Medical

DaVita Dialysis Yucca Valley

56845 Twentynine Palms Highway, Yucca Valley, CA 92284

Listing Price: $6,175,000

Cap Rate
5.52%
Tenant Name
DaVita Dialysis
Years Remaining On Lease
9.8
Gross SF
19,950
Guarantor
Corporate Guarantee
Rentable SF
19,950
Price/Gross SF
$309.52
Lease Type
Triple Net (NNN)
Rent Per Square Feet
$17.09

Investment Overview

Marcus & Millichap is pleased to present the 19,950 square foot corporate guaranteed DaVita Dialysis High Desert clinic located in Yucca Valley, California. DaVita Dialysis was completely renovated upon lease commencement in 2016 to meet DaVita’s strict Hope design standards, thus resulting in a cutting-edge, cost and energy efficient healthcare facility. DaVita has selectively chosen this location due to the facility’s ease of access to major thoroughfares in the area, and the area’s high percentage of aging population. According to the 2010 US Census, approximately half of the area’s population was over the age of 45 years old. The corporate lease structure offers an investor a secure 10-year term with 10 percent rental increases every five years, two five-year renewal options, and a full guarantee by DaVita Healthcare Partners, Incorporated, one of the nation’s largest and most innovative healthcare companies. The lease calls for very minimal landlord responsibilities. The Landlord is responsible for maintaining, repairing, and replacing the systems and structures of the building; however, the Tenant is responsible for reimbursing the Landlord for the reasonable and actual costs of such maintenance and repairs. As an operating division of DaVita Healthcare Partners Incorporated, DaVita Kidney Care focuses on setting worldwide standards for clinical, social, and operational practices in kidney care. DaVita Kidney Care is a leading provider of dialysis services in the United States, treating patients with chronic kidney failure and end-stage renal disease. DaVita Kidney Care strives to improve patients’ quality of life by providing innovative clinical care, and by offering integrated treatment plans, personalized care teams, and convenient health-management services. DaVita is DaVita is committed to bold, patient-centric care models, implementing the latest technologies and moving toward integrated care offerings for all. As of March 31, 2021, DaVita served 202,600 patients at 2,827 outpatient dialysis centers in the United States. DaVita holds an investment grade rating of BB from Standard & Poor's, and a long term rating of Ba2 from Moody's. DaVita currently trades in the NYSE under the listed name DVA. COMMON AREA MAINTENANCE LEASE LANGUAGE Common Area Maintenance: Maintenance, repair and replacement subject to tenant reimbursement: parking areas, roof and HVAC. Landlord shall, at landlord’s sole cost and expense, promptly maintain and keep in good order and repair and promptly make any necessary replacements to the following building structures and systems: concrete slab, footings, foundation, structural components, exterior walls (excluding painting), sidewalks, driveways, loading areas, flooring system (excluding floor covering), exterior plumbing, and electrical systems of the building. Insurance: Tenant shall reimburse landlord for the commercially reasonable cost of such insurance, not to exceed the cost of insurance premiums charged by third party commercial providers, as additional rent. Any additional insurance obtained by tenant shall be at tenant’s sole cost and expense. Taxes: Tenant shall promptly pay all real estate taxes, assessments, water and sewer charges and other governmental levies, and any applicable ownership association fees (“impositions”) against the premises. Additional Reimbursement Language: Parking Areas: Landlord shall maintain and keep in good order and repair and make any necessary replacements to the parking areas, sidewalks, loading areas and drive aisles serving the building provided that tenant shall reimburse landlord for the reasonable and actual cost thereof on an amortized basis, as more fully described below in this Section 20. Roof: Landlord shall maintain and keep in good order and repair and make any necessary replacements to the roof, roof membrane, and roof covering, provided that (A) with respect to repairs and maintenance, tenant shall reimburse landlord for actual and reasonable costs not to exceed $1,000 per lease year, and (B) with respect to replacement, tenant shall reimburse landlord for the reasonable and actual cost thereof on an amortized basis. HVAC: Landlord shall make any necessary replacements to, but shall not be responsible for maintenance and repairs of, the heating, ventilation, and cool

Investment Highlights

  • Corporate guaranteed, Fortune 500 DaVita Dialysis lease with 10 Years remaining. 10% increases every five years with next increase to begin July 2026. Two Five year options with set 10% increases.
  • New roof as of May of 2021 for a cost of approximately $75,380. Buyer may recapture roof cost over 20 year amortization schedule of approximately $3,769 annually; brings the cap rate to 5.52%
  • NNN but for Structure and slab. Tenant reimburses Landlord for Roof, HVAC, Parking Lot, management, maintenance, taxes and insurance.
  • Corporate DaVita Inc. Entity Guaranty
  • Superior return for a Credit Tenant such as DaVita Inc!

Exclusively Listed By

Financing By

Single-Tenant Office Medical

DaVita Dialysis Yucca Valley

Listing Price: $6,175,000

Cap Rate
5.52%
Tenant Name
DaVita Dialysis
Years Remaining On Lease
9.8
Gross SF
19,950
Guarantor
Corporate Guarantee
Rentable SF
19,950
Price/Gross SF
$309.52
Lease Type
Triple Net (NNN)
Rent Per Square Feet
$17.09

Investment Highlights

  • Corporate guaranteed, Fortune 500 DaVita Dialysis lease with 10 Years remaining. 10% increases every five years with next increase to begin July 2026. Two Five year options with set 10% increases.
  • New roof as of May of 2021 for a cost of approximately $75,380. Buyer may recapture roof cost over 20 year amortization schedule of approximately $3,769 annually; brings the cap rate to 5.52%
  • NNN but for Structure and slab. Tenant reimburses Landlord for Roof, HVAC, Parking Lot, management, maintenance, taxes and insurance.
  • Corporate DaVita Inc. Entity Guaranty
  • Superior return for a Credit Tenant such as DaVita Inc!

Investment Overview

Marcus & Millichap is pleased to present the 19,950 square foot corporate guaranteed DaVita Dialysis High Desert clinic located in Yucca Valley, California. DaVita Dialysis was completely renovated upon lease commencement in 2016 to meet DaVita’s strict Hope design standards, thus resulting in a cutting-edge, cost and energy efficient healthcare facility. DaVita has selectively chosen this location due to the facility’s ease of access to major thoroughfares in the area, and the area’s high percentage of aging population. According to the 2010 US Census, approximately half of the area’s population was over the age of 45 years old. The corporate lease structure offers an investor a secure 10-year term with 10 percent rental increases every five years, two five-year renewal options, and a full guarantee by DaVita Healthcare Partners, Incorporated, one of the nation’s largest and most innovative healthcare companies. The lease calls for very minimal landlord responsibilities. The Landlord is responsible for maintaining, repairing, and replacing the systems and structures of the building; however, the Tenant is responsible for reimbursing the Landlord for the reasonable and actual costs of such maintenance and repairs. As an operating division of DaVita Healthcare Partners Incorporated, DaVita Kidney Care focuses on setting worldwide standards for clinical, social, and operational practices in kidney care. DaVita Kidney Care is a leading provider of dialysis services in the United States, treating patients with chronic kidney failure and end-stage renal disease. DaVita Kidney Care strives to improve patients’ quality of life by providing innovative clinical care, and by offering integrated treatment plans, personalized care teams, and convenient health-management services. DaVita is DaVita is committed to bold, patient-centric care models, implementing the latest technologies and moving toward integrated care offerings for all. As of March 31, 2021, DaVita served 202,600 patients at 2,827 outpatient dialysis centers in the United States. DaVita holds an investment grade rating of BB from Standard & Poor's, and a long term rating of Ba2 from Moody's. DaVita currently trades in the NYSE under the listed name DVA. COMMON AREA MAINTENANCE LEASE LANGUAGE Common Area Maintenance: Maintenance, repair and replacement subject to tenant reimbursement: parking areas, roof and HVAC. Landlord shall, at landlord’s sole cost and expense, promptly maintain and keep in good order and repair and promptly make any necessary replacements to the following building structures and systems: concrete slab, footings, foundation, structural components, exterior walls (excluding painting), sidewalks, driveways, loading areas, flooring system (excluding floor covering), exterior plumbing, and electrical systems of the building. Insurance: Tenant shall reimburse landlord for the commercially reasonable cost of such insurance, not to exceed the cost of insurance premiums charged by third party commercial providers, as additional rent. Any additional insurance obtained by tenant shall be at tenant’s sole cost and expense. Taxes: Tenant shall promptly pay all real estate taxes, assessments, water and sewer charges and other governmental levies, and any applicable ownership association fees (“impositions”) against the premises. Additional Reimbursement Language: Parking Areas: Landlord shall maintain and keep in good order and repair and make any necessary replacements to the parking areas, sidewalks, loading areas and drive aisles serving the building provided that tenant shall reimburse landlord for the reasonable and actual cost thereof on an amortized basis, as more fully described below in this Section 20. Roof: Landlord shall maintain and keep in good order and repair and make any necessary replacements to the roof, roof membrane, and roof covering, provided that (A) with respect to repairs and maintenance, tenant shall reimburse landlord for actual and reasonable costs not to exceed $1,000 per lease year, and (B) with respect to replacement, tenant shall reimburse landlord for the reasonable and actual cost thereof on an amortized basis. HVAC: Landlord shall make any necessary replacements to, but shall not be responsible for maintenance and repairs of, the heating, ventilation, and cool

Exclusively Listed By

Financing By

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