Affordable Dentures TENANT OVERVIEW


Pros

  • New NNN leases
  • Rental Increases throughout lease term
  • Relatively low price point

Cons

  • Private company
  • 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.

In terms of real estate for Affordable Dentures, a NNN 12-year lease is standard, older leases are usually NN (landlord responsible for roof, structure and parking). Their buildings usually sit on 0.75-1.25 acre parcels 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 renew their lease versus relocating.

Before opening a new location, Affordable Dentures generally leases a space in a shopping center for three to five years to test the market. When Affordable Dentures opens a freestanding location, they have already tested the market and are opening in a proven location. They will have a better idea of 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 2.5 hour drive time from their customers.

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 225 centers, operating in 40 states across the United States.

Average Cap Rate
7.79%
12 mo avg with 10+ yr lease term
Average Property & Lease
Average Sale Price $1,278,882
NOI $98,786
$/Square Foot $350
Building SF 3,000 +/-
Lot Size 0.75 - 1.25 +/- Acres
Lease Term 12 Year (Newer - NNN) (Older - NN)
Escalations Older leases: CPI Every 5 Years Newer leases: 10-12% Every 5 Years
Stock Symbol N/A
Credit Rating
S&P N/A
Moody's N/A
Average Cap Rate Trend
7.70%
2015
7.85%
2016
Rates reflect last 12 mos, short and long-term
Recent Sales Comps
Lincoln, NE 8.00%
Chester, VA 7.55%