SANDERLING DIALYSIS CENTER

INVESTMENT HIGHLIGHTS

• HIGH-CALIBER OPERATOR: The property is leased to Sanderling Renal Services – a renal services operator with 19 locations across six states. Sanderling has received investments from Pharos Capital, a private equity firm with over $1 billion in assets under management, and Mitsui & Co., a wholly owned subsidiary of one of Japan’s largest and oldest general trading companies.
• IDEAL MARKET: The property is located just 17 miles east of downtown San Diego in Chula Vista, California which in 2023 was named one of the fastest-growing wealthy suburbs in the United States. It is the second largest city in San Diego County. The property has a 5-mile population of approximately 190,000 and a 5 mile household income of $140,000.
• STRONG SUBMARKET POSITIONING: Sanderling Dialysis Center is located just off California 125 on Otay Lakes Road in the heart of a major cluster of retail and office developments. The property is part of a five- unit, free standing medical condo association.
• CLASS “A” REAL ESTATE: This property, constructed in 2008, features appealing finishes and boasts significant curb appeal, making it an attractive investment opportunity.
• SIGNIFICANT TENANT INVESTMENT: Tenant has invested over $1MM in tenant improvements beyond landlord’s allowance thus demonstrating their commitment to the property.
• PASSIVE NNN LEASE STRUCTURE: This property features a NNN lease structure with all expenses being fully reimbursed by the tenant for their pro-rata share of the medical center, making this an ideal investment opportunity for both local and out of state investors.
• HEDGE AGAINST INFLATION: The tenant’s lease features annual rental bumps with an average escalator of 3%, serving as a great hedge against future inflation.
• CREDIT-ENHANCED LEASE: Investors will benefit from a credit-enhanced lease which includes a corporate guarantee from Sanderling Renal Services-USA and multiple personal guarantees including one from the founder of Sanderling Renal Services.
• GROWING RENAL SERVICES INDUSTRY: The property is operated by a dialysis services provider. As of 2023, the Dialysis Services Market was valued at $33.7 billion and is expected to exhibit growth at a compound annual growth rate of 4% from 2024 – 2032.