DAVITA DIALYSIS

INVESTMENT HIGHLIGHTS

• Birmingham MSA – The greater Birmingham area boasts the largest population and economic region in Alabama. With the country’s highest per capita concentration of healthcare jobs, this area is one of the state’s most secure Healthcare Real Estate markets. The estimated population is north of 1,100,000.
• Certificate of Need State – Alabama is a Certificate of Need (CON) state. This requires a lengthy approval process to break into the market. This state regulatory tool controls the number of health care resources in an area. Requires a health system to demonstrate community need before establishing a healthcare facility.
• Strong Demographics – 5-mile radius has a dense population of over 109,000 and average household income of $63,000.
• Pandemic and Recession Resilient – Healthcare real estate has shown resilience against recessions and the COVID-19 pandemic. The demand for medical services tends to remain relatively stable even during economic downturns.
• Double Net Lease With Increases – Provides for minimal landlord responsibilities and 2% annual increases.
• Tenant History – DaVita has occupied the subject property since 2011 showing their long term commitment to this location and only paying $5.20/sf in rent.
• National Tenant – DaVita is a Fortune 500 company and one of the leading providers of kidney care in the United States with a near $12 billion market cap.
• Value Add – There is an additional ±8,000 SF that is currently occupied by “Beauty Masters” paying $2,050 / month until August 31st 2024. Upon their vacancy, Landlord will have the ability to lease up this additional space for a significant increase in cash flow/overall return and pro forma cap rate. New Landlord will receive this extra rent if closed before August 2024 as well.
• Capital Expenditures – Half of the roof was redone in 2016 and has a 20-year transferable warranty. The front awning of the entire building will be repainted in the next 2 months in ‘Davita Blue’.