Horvath & Tremblay is pleased to present the exclusive opportunity to purchase a DaVita Dialysis Center (“DaVita”) investment property located at 7024 Kaighns Avenue (NJ Route 38) in Pennsauken, New Jersey (the “Property”). The 12,000 square building is located on a 1.32-acre parcel in the Cherry Hill, New Jersey submarket of Philadelphia between the interchanges of Routes 130, 30 and 70. DaVita has been in occupancy at the Property since 2007 and has 3 years remaining on the corporate lease that includes two, 5-year renewal options. The Property also includes income from a Clear Channel billboard that is triple-net leased through August 2034.Investment Highlights
- LEASE TERM: DaVita Dialysis has been in occupancy at the Property since 2007 and exercised their 1st renewal option in 2017. The current term has 3 years remaining with two additional, 5-year options.
- ATTRACTIVE RENT INCREASES: The DaVita lease features 3% annual rent increases throughout the current term and option periods, providing a steady increase in income and an attractive hedge against inflation for the investor
- DAVITA CORPORATE GUARANTY: DaVita Inc. is the leading provider of kidney care in the US with over 2,600 dialysis centers in 46 states. They are a Fortune 500 company traded on the NYSE (DVA) and reported 2018 gross revenue of $11.4B and operating income of $1.5B.
- GROWTH INDUSTRY: As the population of the country ages, the prevalence of chronic kidney disease will rise according to a report published in the American Journal of Kidney Disease. Adults, ages 30 and older, who have CKD is projected to increase from the current 13.2% to 14.4% in 2020, and 16.7% in 2030. These projections support the demand for dialysis centers and the growth of the dialysis industry.
- RECESSION RESISTANT TENANT: DaVita provides the investor with a high-quality, recession & e-commerce resistant, medical tenant in a strong-demographic location. The DaVita Pennsauken Dialysis Center currently supports 3 shifts, 6 days a week from 5:00 AM – 7:30 PM.
- STRATEGIC LOCATION: The Property is located on the heavily-travelled Kaighns Avenue (NJ Route 38) between Downtown Philadelphia (5 miles) and Cherry Hill, NJ (1 mile) and offers excellent traffic counts, highway visibility and ample parking.
- IDEAL DIALYSIS DEMOGRAPHICS: The local population includes more than 149,800 people within a 3-mile radius of the Property with an average household income of $68,715.
- EXCELLENT TRAFFIC COUNTS: Over 104,000 vehicles per day pass the Property on Kaighns Avenue.
- DESIRABLE BILLBOARD LOCATION: Excellent traffic-counts and highway-visibility supports the strong demand for the triple-net leased billboard on the Property. The Clear Channel lease has 15 years of term remaining and includes rent escalations in 2024 and 2029.