ACCESS DENTAL & ORTHODONTICS PORTFOLIO

INVESTMENT HIGHLIGHTS

• LONG-TERM ABSOLUTE NNN LEASE – The lease offers investors the significant advantage of zero landlord responsibilities for both operating and capital expenses. This structure ensures a hands-off investment, providing stable, predictable cash flow while eliminating the financial risk associated with property upkeep. As a result, it is an ideal choice for those seeking a secure and low maintenance investment. The lease has over 10 years of term with four, five-year renewal options.
• RENT COVERAGE RATIO – Based on Q2 2024 annualized financials, the operator is generating a robust rent coverage ratio across all units.
• JOINT & SEVERAL CORPORATE GUARANTEE – The lease is joint and severally guaranteed by SPEs for 16 of the operator’s 24 active locations. Q2 2024 annualized financials for these locations report substantial EBITDAR which well exceeds the rental obligation for subject portfolio.
• LARGE MARKETS – The properties are predominantly located in markets with 100k+ people, with a few of the sites being located in markets with 300k+ people. This provides an ample patient base to support the operator’s business.
• INCOME TAX FREE STATE – Texas offers significant advantages due to its status as a tax-free state, which means investors can maximize their returns without the burden of state income taxes. This favorable tax environment not only enhances cash flow but also increases overall profitability, making Texas an attractive location for real estate investment.
• STICKY TENANCY – Dental operators rarely relocate due to high build-out costs and difficulty in returning the same patients after moving.
• RECESSION RESISTANT PROPERTY – Healthcare properties are highly coveted investments due to their resilience in economic downturns and their relative immunity to the disruptions that have impacted traditional retail sectors. Unlike many retail properties that have been affected by the rise of e-commerce and changing consumer habits, healthcare facilities tend to offer more stability and consistent demand. Their essential nature ensures a steady stream of tenants and patients, making them a reliable asset class even in challenging economic conditions.
• GROWING INDUSTRY – The global dental services market size was valued at $433.2 billion in 2022 with North America claiming 48.3% of revenue share. The industry is expected to grow at a compound annual growth rate (CAGR) of 4.5% from 2023 to 2030.
• PRICE PER SQUARE FOOT – The portfolio is being offered at $309 per square foot which is an attractive basis for dental properties which have high cost buildouts.
• Rahul Chhajed, & Michael Moreno in conjunction with Matthews Real Estate Investment Services, Inc., a cooperating foreign broker for this listing pursuant to Section 535.4(b) of the Texas Administrative Code.