WINSTON-SALEM DENTAL SALE LEASEBACK

INVESTMENT HIGHLIGHTS

• STABLE LONG-TERM LEASES: One tenant has just signed a new 10-year lease, while the other tenant will be signing a new 10-year lease at the close of escrow, providing stability and predictability in cash flow for the property.
• ATTRACTIVE RENTAL INCREASES: The leases include a 3% annual rental increase, ensuring consistent revenue growth and protection against inflation over the lease term.
• STRATEGIC MEDICAL HUB: The property is located just 1.5 miles from Novant Health Medical Center, enhancing its appeal as part of a well-established medical corridor that attracts patient traffic.
• CONVENIENT HIGHWAY ACCESS: Proximity to major highways, specifically Interstate 40 and US Highway 421, facilitates easy access for patients and clients, increasing foot traffic and potential business from surrounding areas.
• ROBUST RETAIL ENVIRONMENT: The property is surrounded by over 1 million square feet of national retail tenants, including Costco, Target, Home Depot, Sam’s Club, and Kohl’s, among others. This prime location benefits from high visibility and significant consumer activity, complementing the medical office’s services.
• FLEXIBLE LEASE OPTIONS: Tenants have two, 5-year renewal options, allowing for continued occupancy and stability in cash flow beyond the initial lease terms.
• ESTABLISHED PRACTICES: The property is home to two reputable dental offices—Forsyth Smiles and Kenneth R. Russell, DDS—known for their quality services and strong community presence.
• PROVEN TRACK RECORD: Both tenants have demonstrated a successful business history, contributing to a reliable income stream and a low risk of vacancy.
• HEALTHCARE DEMAND: With increasing healthcare needs in the community, these dental offices are well-positioned to capitalize on local demographics, ensuring a consistent patient base and demand for their services.
• $145+ BILLION INDUSTRY ~$300 BILLION BY 2032: The U.S. dental services market size was valued at $147.3 billion in 2022 and is projected to reach approximately $295.23 billion by 2032, growing at a compound annual growth rate during the forecast period from 2023 to 2032.
• HEALTHCARE REAL ESTATE | RECESSION RESISTANT PROPERTY: Dental practices are highly sought-after investments due to their resilience to economic downturns and immunity to e-commerce trends that impact traditional retail properties.
• GROWING POPULATION: Winston-Salem boasts a population of over 250,000 residents, with significant growth in recent years, indicating a robust demand for healthcare services.
• STRONG HOUSEHOLD INCOME: The average household income in the surrounding area is competitive, providing residents with the financial means to seek quality healthcare services, further supporting the stability and growth potential of the dental practices located in the property.