MELISSA DENTAL & ORTHODONTICS (MB2)

INVESTMENT HIGHLIGHTS

• RECENT LEASE EXTENSION | COMMITTED TENANCY – The tenant, MB2, recently executed their first option to extend the lease, with a fresh 5-year term. This further establishes the tenant’s continued success and commitment to the location going forward.
• MB2 (700+ LOCATIONS) | DSO TENANCY | CORPORATE LEASE | 1,500+ DOCTORS | SUCCESSFUL OPERATING HISTORY – Melissa Dental and Orthodontics is part of the MB2 Dental organization. MB2 is one of the largest networks of dental practices across the country, with over 700 locations in 42+ states. MB2 was founded in 2007 as America’s first and fastest-growing Dental Partnership Organization (DPO). They partner with hundreds of dentists and specialists across the country and are always looking for the right doctors to join their movement. This practice affiliated with Smile Doctors in 2019 – the partnership is a testament to the success of this location and the tenant’s commitment to the site going forward.
• IDEAL LOCATION | PROXIMITY TO NATIONAL TENANTS | MAJOR RETAILERS EXPANDING INTO MELISSA | NEW WALMART AND HEB STORES – Renowned brands are tapping into Melissa’s rapidly growing market. Walmart is set to open its first Melissa location just one mile from the property – a 200,000-square-foot supercenter featuring a micro-fulfillment center to enhance online order efficiency. H-E-B is also bringing its first location to Melissa, a 131,000 square foot facility only about two miles from the property. The location is positioned between a dense area of high-income residential communities and down the street from other national retailers like Kroger, Buc-ee’s CVS, Starbucks, McDonald’s, etc.
• TOP GROWING CITY IN NORTH TEXAS | EXPONENTIAL GROWTH | 64.4% INCREASE – Positioned about 41 miles north of downtown Dallas and eight miles north of McKinney, Melissa is one of North Texas’s fastest-growing cities. It enjoys prime connectivity along U.S. 75 and State Highway 121 (Sam Rayburn Highway). Melissa’s population boomed between 2020 and 2023, increasing 64.4% from 14,336 to 23,571. Melissa is also home to a nationally renowned sports facility, The Z-Plex, and is home to Buc-ees, a Texas icon. The city also has a Comprehensive Master Plan that includes a mix of retail, manufacturing, and industrial concerns.
• BOOMING DEVELOPMENT | CLOSE PROXIMITY TO MULTI-FAMILY AND SINGLE-FAMILY RESIENTIAL DEVELOPMENTS – Notable nearby housing developments include Farmhouse 121 Apartments (284 Units), Avilla Springs (212 Units), both built in the last year alone. Nearby residential developments include Military Ranch (238 Lots), Hunter’s Creek (429 Lots), Brookside (308 Lots), Trails of Melissa (418 Lots), Hines Development (238 Lots), Meadow Run (133 Lots) and countless others.
• GOLDFISH PEDIATRICS AND URGENT CARE | NNN LEASE | 100% MEDICAL TENANCY – Beyond the class-A tenancy of MB2, the property is also tenanted by Goldfish Pediatrics & Urgent Care, who prides itself for providing an updated model to the routine 9-5 pediatric practices. They are founded on providing excellent quality pediatric care during and after hours, easing a great burden of many parents in finding consistent quality care after hours.
• NNN LEASE STRUCTURES | MINIMAL LANDLORD RESPONSIBILITIES | 5 YEAR WALT – Both tenants at the property are on NNN leases, offering a passive investment opportunity for both local and national investors. The weighted average lease term for the asset is about 5 years, offering a reliable long term cash flow.
• SYNERGISTIC LOCATION | TOP QUALITY CONSTRUCTION | STICKY INVESTMENT – The location is fittest with upmost quality construction (2018) and is positioned along Sam Rayburn Hwy, surrounded by dozens of new construction retail facilities, creating a synergy which the tenant benefits from. Beyond the class-A build out, ownership reaps the benefits of a specialized healthcare tenancy and further layer of security as dental and healthcare facilities rarely relocate due to the difficulty of retaining the same patients in a new location, and the high cost of moving.
• HIGH TRAFFIC LOCATION | DIRECT ACCESS AND HIGH VISIBILITY – The property benefits from high exposure on Sam Rayburn Hwy, the main thoroughfare running through Melissa, TX. This generates direct visibility of the asset, crucial to the success for outpatient healthcare facilities like a dental office that relies and brand awareness and walk-in business.
• TOP MSA (DALLAS-FORT WORTH, TX) | HIGH GROWTH AND ROBUST DEMOGRAPHICS | 4TH LARGEST MSA IN THE COUNTRY | EXTREMELY AFFLUENT AREA – The average household income is over $130,000 in a 1 and 3 and 5-mile radius of the property. Dallas-Fort Worth is the 4th largest MSA in the United States and is rated the fastest growing MSA in the country, expected to grow by 2.6 million people by 2030. DFW ranked first in the country for total job growth – adding 322,200 jobs in 2020, recording an impressive 9.3% growth rate.
• $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.