ENDODONTIC SPECIALISTS - MOB (SPECIALIZED DENTAL PARTNERS)

INVESTMENT HIGHLIGHTS

SPECIALIZED DENTAL PARTNERS (200+ LOCATIONS) | DSO TENANCY | CORPORATE LEASE

• The anchor tenant, Specialized Dental Partners, is a specialty focused DSO with over 200+ locations across 35+ states and growing – their practices are focused on endodontics, periodontics, and oral surgery. Specialized Dental Partners connects and supports a national network of growth-oriented clinicians who collaborate to deliver exceptional patient experiences and outcomes while advancing their specialties.

10 YEAR NNN LEASE | 2021 PRACTICE ACQUISITION | 7 YEARS REMAINING | 7.50% CAP | 3% INCREASES

• The dental tenant acquired this practice in September of 2021 and signed a new 10 year NNN lease, establishing their commitment and success of the location going forward.
• Offered at a 9.00% cap, this asset offers a high-yield investment opportunity leased to a national and proven operator. Their lease features 3% annual rental increases throughout the term, creating a hedge against inflation and growth of cash flow over the life of the investment.

NNN LEASE STRUCTURE | MINIMAL LANDLORD RESPONSIBILITIES

• The NNN lease structure offers a passive investment opportunity for both local and national investors – the dental tenant’s NNN structure covers the unit’s NNN charges.

SPECIALIZED TENANCY | THE ENDODONTIC SPECIALISTS OF LAREDO | STICKY INVESTMENT | SYNERGISTIC MOB LOCATION

• The Endodontic Specialists of Laredo provides specialty dental services to Laredo and surrounding markets. Endodontics is a branch of dentistry recognized by the American Dental Association involving treatment of the pulp (root canal), and surrounding tissues of the tooth. This practice is specialized in root canal therapy, endodontic retreatment, apicoectomy, traumatic injury treatment, cracked teeth, etc.
• The location is part of a medical office building known as the Northtown Professional Plaza. The building is filled with other medical practices and specialties, creating a synergy which the tenant benefits from. Beyond the medical office location, ownership reaps the benefits of a specialized healthcare tenancy and further layer of security. This is because dental facilities rarely relocate due to the difficulty of retaining the same patients in a new location and the high cost of moving.

PROXIMITY TO NATIONAL TENANTS + HIGH TRAFFIC SHOPPING CENTERS | ±41,601 VPD

• The property benefits from high exposure on McPherson Rd, which sees over ±41,601 cars per day. This generates direct visibility of the asset, crucial to the success for outpatient healthcare facilities like a dental office.
• The site is just down the street from a major intersection at McPherson Rd and E Del Mar Blvd which includes a major HEB shopping center and other national tenants like Starbucks, McDonald’s, Smoothie King, Crumbl, Walgreens, Chipotle, 7-Eleven KFC, Jiffy Lube, etc., all which constant traffic to the location.

LAREDO, TX | BORDER METROPOLIS | ROBUST DEMOGRAPHICS | TOP 10 TEXAS CITY

• Laredo serves as a hub of south Texas and is a top 10 city in the state (population). Average household income is over $151,164 within a 1-mile radius of the property. There are over 173,026 residents in a 5-mile radius of the property, which is expected to continue to grow annually as it has an average growth rate of 2.15% since 2009. The Laredo metro area population is projected to reach 340,000 in 2024.

$145+ BILLION INDUSTRY | $300 BILLION BY 2032

• The U.S. dental services market size was exhibited at $147.3 billion in 2022 and is projected to hit around USD $295.23 billion by 2032, growing at a CAGR of 7.2% during the forecast period 2023 to 2032. Comments restricted to single page

Antonio Diona, Michael Moreno & Rahul Chhajed 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.