Fresenius Medical Care: Los Lunas, NM
NEW 15-YEAR LEASE WITH ANNUAL CPI INCREASES
New 15-year Absolute NNN lease with annual CPI rent increases (Capped at 2%). There are an additional three, 5-Year Renewal Option Periods.
ABSOLUTE NNN LEASE
Unlike the standard dialysis center leases with significant Landlord responsibilities (such as roof, structure, parking lot and HVAC replacement), the Subject Property has an absolute NNN lease structure that provides an investor with a long-term, passive income stream with no landlord maintenance responsibilities whatsoever.
WELL-ESTABLISHED LOCATION WITH STRONG DEMOGRAPHICS
The Subject Property has a 14-year operational history at this location and is situated just off Interstate 25 (32,209 VPD). The facility is located near Walmart Supercenter, Walgreens, KFC, Home Depot, Lowe’s and a 100,000 sq ft Fresenius Medical Care Distribution Center, serving more than 1,300 patients throughout Arizona, Colorado, New Mexico and the West Texas region. The dialysis center is situated less than 2 miles from the newly constructed 2.8 million sq ft, $1 billion Facebook Data Center completely powered by renewable solar and wind energy. A reported $2 million increase in gross receipts tax revenue for the first quarter of the fiscal year was attributable to the Data Center alone. Likewise, there are average household incomes of $68,840 within a one-mile radius of the Subject Property, with the Health Care Industry as the #1 largest industry group in the Albuquerque MSA.
INVESTMENT GRADE TENANT
Fresenius Medical Care Holdings, Inc., the Guarantor under the Lease, carries an Investment Grade Credit Rating of “BBB-” from S&P and “Baa3” from Moody’s. Unlike many other dialysis center leases, the Guarantee does not expire at the end of the primary term. The lease is guaranteed by Fresenius Medical Care Holdings, Inc.
FRESENIUS MEDICAL CARE(1)
• Fresenius Medical Care reported $18.5 Billion in revenue and a net worth of $11.5 Billion (2018)
• Fresenius Medical Care is the world’s largest provider of products and services for individuals with renal diseases of which approximately 3.4 million patients worldwide regularly undergo dialysis treatment
• Revenue in North America, approximately 72% of Fresenius Medical Care’s total revenue, increased 8% from the previous year
• Fresenius Medical Care serves 333,331 patients in more than 50 countries across 3,928 clinics
• Fresenius Medical Care employs more than 112,658 people in more than 50 countries around the world, which includes over 60,000 in North America
(1) All financial data shown above is for Fresenius Medical Care, which does not guarantee the Lease. Lease is guaranteed by the US entity, Fresenius Medical Care Holdings, Inc., which carries an investment grade credit rating of “BBB-” from S&P and “Baa3” from Moody’s.
Sources: www.freseniusmedicalcare.com, Yahoo Finance, Standard & Poor’s, Moody’s, www.newmexico.org
NM Broker of Record: Matthew Reeves
License: 19583
