Description:

Crownstone Investment Group of KW Commercial is pleased to offer on an exclusive basis the fee simple purchase of The Bronx, NY Davita Dialysis Center. There are 14+ years left on the new 15 year corporate guaranteed NNN lease which provides 10% rent increases every 5 years. Davita Healthcare Partners (DVA) holds a BB credit rating, is the fastest growing corporation on the Fortune 500 list and a top holding of Warren Buffett's Berkshire Hathaway.
This asset offers an extremely unique and sought after opportunity to acquire a high-quality, investment grade, single tenant asset with a long term lease in the largest city in America. New York is a Certificate of Need (CON) state, creating significant barriers to entry in the marketplace for any competition. This Davita is located less than a mile from the 461-bed St. Barnabas Hospital as well as being in close proximity to several other healthcare centers.

This Davita is a 2015 build-to-suit project that is a newly completed comprehensive redevelopment of an existing building including new roof, elevator, and new HVAC systems. The building is approximately 19,979 SF on an inline lot of approximately 11,963 SF. Current zoning allows for 4 stories of air rights above the existing office, so the owner could conceivably add 30,000-40,000 SF of residential housing to the site.
Purchase Price: $8,634,480
NOI: $431,724
Cap Rate: 5%
Tenant: Davita Healthcare Partners Inc (DVA)
Lease Type: NNN
Lease Commencement: October 2015
Lease Expiration: October 2030
Rental Increases: 10% rent increases every 5 years within initial term plus options
Renewal Options: Two 5-year options
Ownership Type: Fee Simple
Landlord Responsibilities: Parking Area, roof, HVAC, and elevator are maintained by Lessor and reimbursed by Lessee as additional rent. Roof repairs are subject to $1,000 cap per lease year.
Rentable SF: 19,979
Lot Size: 11,963 SF
Year Built: 1943 / 2015 Renovation
Property Offers the Ability to Assume the Existing Debt:
Loan Assumption: Lender - Freedom Mortgage
Servicer - PNC
Balance - $3,590,000
Interest Rate - 4.4%
Amortization - 30 year
Term - 10 year
Payment - $17,527

Presented by:

Adriana  West

Managing Director

(678) 534-2718

(678) 907-7034

Click here to email

Property Flyer

Listed by:

Crownstone Investment Group