Single-Tenant Office Medical

DaVita Healthcare | New 10 Yr Lease | 2009 Build to Suit

Listing Price: $2,833,333

Cap Rate
6.00%
Tenant Name
DaVita
Years Remaining On Lease
9.50
Gross SF
8,500
Guarantor
Corporate Guarantee
Rentable SF
8,500
Price/Gross SF
$333.33
Lease Type
Triple Net (NNN)
Rent Per Square Feet
$20.00

Investment Overview

Located at 300 N. Colorado Ave in East Wenatchee, the DaVita Dialysis Center consists of an 8,500 square foot building situated on a 1.05-acre parcel. A Build-to-Suit Development for DaVita in 2009, the dialysis center includes 12 stations with the ability to accommodate 20 stations for future growth, and offers in-center hemodialysis (HD) and peritoneal dialysis (PD). After being delivered the premises, DaVita contributed nearly $1 million towards additional tenant improvements and building upgrades. The corporate guaranteed lease was recently extended for 10 years, and offers 3 x 5-year renewal options, and scheduled rent increases of 10% every 5 years. The NNN lease provides for minimal landlord responsibilities, which are limited to the structural components of the roof and building only. See Lease Abstract page for more details. Additionally, the current lease rate of $20 per square foot is comparable to other Class-A professional and medical office properties the trade area. Washington State is a Certificate of Need (CoN) state, meaning construction of any new health care facilities (including dialysis centers) must be approved by the Washington State Department of Health. Approval for such construction is not granted until the demand for dialysis stations exceeds the current supply in any given “Planning Area.” The DaVita Dialysis Center is located in the Adams County Planning area, where it benefits from being the only dialysis center in the Planning Area.

Investment Highlights

  • Nation's leading provider of kidney dialysis services and a Fortune 500 company, DaVita generated $11.4 Billion in net revenue in 2018. S&P Investment Grade Rating of BB.
  • New 10-year lease extension with three (3) five (5) year options
  • DaVita recently increased its number of stations from 8 to 12, and has room to accommodate a total of 20 stations, ensuring DaVita's long-term success at this location.
  • Property was constructed as a Build to Suit for DaVita in 2009
  • Washington is a Certificate of Need (CoN) State, which limits competition and prevents an oversupply of dialysis centers and other medical facilities
  • Passive investment offering minimal Landlord responsibilities, which are limited to the foundation, structural components of the roof, and structural components of the building

Exclusively Listed By

  • Brian Mayer

    Vice President Investments

    Email Brian

    License(s): WA: 108682

    Seattle

Single-Tenant Office Medical

DaVita Healthcare | New 10 Yr Lease | 2009 Build to Suit

Listing Price: $2,833,333

Cap Rate
6.00%
Tenant Name
DaVita
Years Remaining On Lease
9.50
Gross SF
8,500
Guarantor
Corporate Guarantee
Rentable SF
8,500
Price/Gross SF
$333.33
Lease Type
Triple Net (NNN)
Rent Per Square Feet
$20.00

Investment Highlights

  • Nation's leading provider of kidney dialysis services and a Fortune 500 company, DaVita generated $11.4 Billion in net revenue in 2018. S&P Investment Grade Rating of BB.
  • New 10-year lease extension with three (3) five (5) year options
  • DaVita recently increased its number of stations from 8 to 12, and has room to accommodate a total of 20 stations, ensuring DaVita's long-term success at this location.
  • Property was constructed as a Build to Suit for DaVita in 2009
  • Washington is a Certificate of Need (CoN) State, which limits competition and prevents an oversupply of dialysis centers and other medical facilities
  • Passive investment offering minimal Landlord responsibilities, which are limited to the foundation, structural components of the roof, and structural components of the building

Investment Overview

Located at 300 N. Colorado Ave in East Wenatchee, the DaVita Dialysis Center consists of an 8,500 square foot building situated on a 1.05-acre parcel. A Build-to-Suit Development for DaVita in 2009, the dialysis center includes 12 stations with the ability to accommodate 20 stations for future growth, and offers in-center hemodialysis (HD) and peritoneal dialysis (PD). After being delivered the premises, DaVita contributed nearly $1 million towards additional tenant improvements and building upgrades. The corporate guaranteed lease was recently extended for 10 years, and offers 3 x 5-year renewal options, and scheduled rent increases of 10% every 5 years. The NNN lease provides for minimal landlord responsibilities, which are limited to the structural components of the roof and building only. See Lease Abstract page for more details. Additionally, the current lease rate of $20 per square foot is comparable to other Class-A professional and medical office properties the trade area. Washington State is a Certificate of Need (CoN) state, meaning construction of any new health care facilities (including dialysis centers) must be approved by the Washington State Department of Health. Approval for such construction is not granted until the demand for dialysis stations exceeds the current supply in any given “Planning Area.” The DaVita Dialysis Center is located in the Adams County Planning area, where it benefits from being the only dialysis center in the Planning Area.

Exclusively Listed By

  • Brian Mayer

    Vice President Investments

    Email Brian

    License(s): WA: 108682

    Seattle

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