Executive Summary – 301 E. Airline Victoria, Texas
301 E. Airline in Victoria, Texas is a 6849 SF Medical office building leased to a Fortune 500 Medical Company called DaVita www.davita.com. DaVita’s new Victoria Dialysis Unit should complete redevelopment (rent commencement on c of o) on or around June 1, 2011. This property is conveniently located for dialysis patients “sandwiched” in between the two Victoria Hospitals. 301 E. Airline is 1.2 miles from Detar Hospital (506 E San Antonio Street) http://www.detar.com and 2.2 miles from Citizens Hospital (2701 Hospital Drive) http://www.citizensmedicalcenter.org. This site is Davita’s 2nd dialysis unit in Victoria, Texas. This new unit has been opened to fight the growing kidney failure epidemic that Texas owns (largely driven from Texan’s eating habits). I am proud to say that my Uncle Bill was given a few more years of life through the excellent care that he received in DaVita’s initial Victoria Unit. He passed away last year after many years of “fighting the good fight”. My Aunt Sue is proud to know that our family is involved in bringing a beacon of hope to Victoria, Texas through the efforts of this fine tenant. If you like investing in single user NNN assets (less “brain damage” than dealing with vacancy issues on multi-tenant assets) why wouldn’t you choose to place your hard earned money into an investment leased/guaranteed by a group that is providing a service that extends lives? The patrons of these facilities might skip a burger at the NNN asset that you are considering down the street from this one, but would they skip their dialysis treatment?
Current rental rate approximates $20.00/SF NNN in based year rent. There are $0.50 annual rent escalations. The lease contains three (3) five (5) year renewal options with a very high likelihood of extension due to the significant investment in this facility by Tenant and its excellent location. Base year NOI is $136,980.00. Year 15 NOI is $184,923.00. List Price of $1,826,400.00 is based on a 7.5% capitalization rate (cap rate) on the base year “ACTUAL”NOI.
DaVita Inc., a FORTUNE 500® company, is a leading provider of kidney care in the United States, delivering dialysis services and education to patients with chronic kidney failure and end stage renal disease. As of March 31, 2011, DaVita operated or provided administrative services at 1,642 dialysis facilities, serving approximately 128,000 patients. DaVita develops, participates in and donates to numerous programs dedicated to transforming communities and creating positive, sustainable change for children, families and our environment. The company’s leadership development initiatives and corporate social responsibility efforts have been recognized by Fortune, Modern Healthcare, Newsweek, and WorldBlu, among others.
Victoria, Texas Links
Link LeGrand CCIM
Licensed in Texas
Keller Williams Legacy
1102 E. Sonterra Blvd. #106
San Antonio, TX 78258