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  DaVita


Average Property & Lease

Average Sale Price$3,032,975
CAP Rate (12mo avg with 10+ lease term)5.78%
NOI$180,746
$/Square Foot$377.39
Building Size6,000 - 12,500 sf
Lot Size1 - 2.5 acres
Lease Term15 +/- Years
Escalations1.5-2% Annually or 8-10% every 5 years
CREDIT RATING
BB
S&P
Ba3
Moody's
view credit rating chart
View Net Lease Property Listings at CALKAIN.COM Last Updated: November 28, 2016
Net Lease Advisor Overview

Investors like DaVita's small price point and the fact that kidney dialysis is a growth industry. Investors take security from the tenant's investment in the build out of the property along with the installation of specialty trade fixtures that make it less likely for the tenant to leave at lease expiration. The very nature of DaVita's business, kidney dialysis, requires clients to visit routinely and consistently, which in turn produces a reliable income stream for that location.

As the population in the United States ages, the prevalence of chronic kidney disease will rise according to a report published in the American Journal of Kidney Disease. Adults, ages 30 and older, who have CKD is projected to increase from the current 13.2% to 14.4% in 2020, and 16.7% in 2030. These projections continue to support the demand for dialysis centers and the growth in this industry.
 

Pros

Cons

  • Corporate Guaranty
  • NNN Leases
  • Proximity to hospitals and medical offices
  • Some NN leases holds landlord responsible for roof and structure
  • Expensive to re-lease should the tenant leave
Tenant Description

DaVita, Inc, a Fortune 500 Company, is one of the largest kidney care companies in the United States headquartered in Denver, Colorado. DaVita - which is Italian for "giving life" - began in 1999. Their offerings include in-center hemodialysis, in-center nocturnal dialysis, peritoneal dialysis, home hemodialysis, vascular access management, chronic kidney disease education, and renal diet assistance.

As of September 30, 2016, DaVita Kidney Care provided dialysis services to a total of approximately 199,000 patients at 2,457 outpatient dialysis centers, of which 2,318 centers were located in the United States and 139 centers were located in 11 countries outside of the United States.


DAVITA TREND
CAP Rate

2015 avg: 7.28%

2016 avg: 6.77%

RECENT SALES

Stratford, CT | 5.58%

San Antonio, TX | 6.25%

MORE INFO
www.davita.com
Google Finance: DVA
Google News: DVA