DaVita Dialysis: Winter Haven, FL (Lakeland - Winter Haven MSA)
CAP RATE INCREASES TO 6.60% CAP IN 2 YEARS
The lease provides 10% rent increases every 5 years with the next increase occuring in 2021.
LONG TERM CORPORATE LEASE WITH A FORTUNE 500 COMPANY
There are approximately 12 years remaining on the initial lease term with 10% rent increases every 5 years, which continue through each of the two, 5-year renewal option periods. The lease comes with a corporate guarantee from DaVita Inc., a Fortune 500 company with $11.4 billion in revenue and an estimated net worth of $4.04 billion. As of June 30, 2019, DaVita served 231,700 patients at 2,971 outpatient dialysis centers, of which 2,723 centers were located in the U.S. and 248 centers were located in 9 countries outside the United States. DaVita is recognized as one of “America’s Largest Public Companies” on the 2019 Forbes List and has been part of Fortune Magazine’s List of “World’s Most Admired Companies” for 12 consecutive years.
SUPERIOR DAVITA LEASE WITH MINIMAL LANDLORD RESPONSIBILITIES
The lease has minimal landlord responsibilities, especially when compared to the majority of other DaVita and Fresenius leases that require significantly more Landlord responsibilities such as maintenance of the building structure, roof membrane replacement, HVAC replacement, day-to-day management and replacement of the parking lot areas. The subject property’s lease is modified triple net with Landlord responsibilities limited to the replacement of the structure and structural elements of the roo onlyf.(1)
MAJOR CAPITAL IMPROVEMENTS COMPLETED
Estimated $433,000 in renovations including significant tenant improvements with new cabinets and flooring, structural upgrades, replacement of HVAC units, new plumbing, electrical work, paint and major repairs to the parking lot.(2)
THRIVING CENTRAL FLORIDA LOCATION
The subject property is a well-established, single tenant DaVita Dialysis clinic located in Winter Haven, Florida, and ideally situated just one mile from Winter Haven Hospital, a 527-bed hospital and health service system. Winter Haven’s central location makes it ideal for any business that has an interest in accessing the over nine million people within a 100-mile radius of Polk County. Located 55 miles inland and with convenient access to interstates I-4, I-75, US 27 and the Florida Turnpike System, Winter Haven offers a protected and connected hub for the burgeoning transportation, logistics, manufacturing and technology industries. This prime location allows for convenient access to two major international airports, the nation’s newest inland port and logistics center and a population of 7.2 million within an hour’s drive. Winter Haven’s location at the intersection of major transportation and technology grids makes the area primed to receive, produce and distribute goods and services regionally and globally. Winter Haven’s technology grid is one of the most sophisticated in the Southeast. Local businesses benefit from the strategic position along the east-west portion of Florida’s LambdaRail, a dedicated statewide communications facility made up of 1,540 miles of dark fiber.
WARREN BUFFET’S BERKSHIRE HATHAWAY IS DAVITA INC.’S LARGEST SHAREHOLDER
Berkshire Hathaway owns approximately 38.5 million shares of DaVita Inc. stock, making them the company’s largest shareholder with a 24% stake. Berkshire Hathaway is ranked #4 on the Fortune 500 list of largest publicly traded companies. Warren Buffet has served as the company’s CEO for over 50 years.(3)
(1) Buyer will need to verify the accuracy of this information during their Due Diligence Period. Marcus & Millichap and its affiliates have not verified and will not verify any information contained herein. Buyer must conduct their own due diligence.
(2) Estimated renovation costs provided by Seller. Buyer will be provided a copy of estimated renovation costs during their Due Diligence Period and will need to verify the accuracy of the information. Marcus & Millichap and its affiliates have not verified and will not verify any information contained herein. Buyer must conduct their own due diligence.
(3) Source: www.money.cnn.com
FL Broker of Record: Ryan Nee
License: BK3154667
