220 South Orange Avenue

Eufaula, AL

Health Care for Sale - $650,000

Bull Realty, Inc.

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Agent Info

NameMichael Bull, CCIM
CompanyBull Realty, Inc.

Property Info

CIMLS #961001
Location220 South Orange Avenue
Eufaula AL 36027
Last UpdatedJanuary 12th, 2018
TypeHealth Care
Price$650,000

Contact


Property Description

This high-performing DaVita Dialysis is located in Eufaula, Alabama. DaVita has occupied the 4,700 SF, all brick building for the last 15 years. The location is recognized as a “CMS Five-Star” facility by the Centers for Medicare & Medicaid Services (CMS) on the Five-Star Quality Rating System. A majority of DaVita revenue comes from Medicare and Medicaid which makes the CMS Five-Star rating of this location extremely valuable. DaVita has been such a strong performer that the tenant paid for a recent renovation, adding multiple dialysis stations. The tenant also renewed their lease 2 years early and extended the initial lease term of ten years due to strong performance. The closest competing Fresenius Dialysis location is almost 60 miles away, making the stability of this DaVita especially appealing.

The lease is a NN lease structure with lease term through March of 2022 with an additional option that runs through 2027. The HVAC systems have been recently replaced, and the parking lot has been striped recently. The building is competitively priced at a 8.6% Cap Rate with a strong rent escalation in March of 2018, making it a rare acquisition opportunity for an investor seeking a net-lease asset with minimal responsibilities and a corporate guaranteed, national credit medical tenant.

Location Description:

Eufaula AL

Highlights:

>> DaVita has operated successfully at location for 15 years with an early renewal in initial term

>> Competitive 8.6% cap rate in March of 2018

>> Recent upgrades including parking lot improvements and striping, as well as new HVAC units

>> Demonstrated strong commitment to site shown by tenant improvements

>> “CMS Five-Star” facility by the Centers for Medicare & Medicaid Services (CMS) on the Five-Star Quality Rating System

>> Lease term through March 2022 with one 5-year option

>> Favorable demographics for DaVita business model