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  Affordable Dentures


Average Property & Lease

Average Sale Price$1,500,000
CAP Rate (12mo avg with 10+ lease term)8.00%
NOI$120,906.50
$/Square Foot$263.00
Building Size2,972 +/- sf
Lot Size0.75 - 1.25 +/- acres
Lease Term12 Year (Newer - NNN) (Older - NN)
EscalationsCPI - Max 15% in older leases, new leases average 10 - 12% every
CREDIT RATING
N/A
S&P
N/A
Moody's
view credit rating chart
View Net Lease Property Listings at CALKAIN.COM Last Updated: September 9, 2016
Net Lease Advisor Overview

In terms of real estate a 12 year term is standard, older leases are usually NN (landlord responsible for roof, structure and parking) while more recent leases are true NNN. Their buildings usually sit on 0.75-1.25 acre parcels of good size capable of re-use. Lease rates are generally in the $30-$40/psf due to medical build-out of facilities. Because of specialty build out, Affordable Dentures is more likely to stay versus relocating as leases age.

Before opening a new location, Affordable generally leases a space in a shopping center for 3 to 5 years to test the market, therefore when they open a free standing location, they have already tested the market and are opening a proven location and know what the sales will be - creating incredibly less risk vs. typical retail business openings.

Their target consumer is median to lower income living in rural outskirts of secondary cities. Because of this, their practices are generally located near interstates and other large retail developments, i.e. regional malls. They are also located in areas within a 2 1/2 hour drive time from their customers.
 

Pros

Cons

  • New NNN leases
  • Rental Increases throughout lease term
  • Relatively low price point
  • Private Company (No Credit Rating)
  • Rental increases are often based on CPI, not fixed.
  • NN nature of older leases
Tenant Description

Affordable Dentures focuses exclusively on dentures and related services. They concentrate on convenience and their sites include on-site laboratories allowing same day service.

Affordable Dentures opened their first practice in Kinston, North Carolina in 1975 (then known as Affordable Care). Today the number of affiliated practices totals over 150 centers, operating in 37 states across the United States. In 2011 they plan on opening 10-15 new locations.
AFFORDABLE DENTURES TREND
CAP Rate

2013 avg: 8.00%

2014 avg: 7.93%

RECENT SALES

Austin, TX

$1,400,000 | 9.4%

N. Charleston, SC

$1,047,961 | 9.4%

MORE INFO
www.affordabledentures.com