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INVESTMENT HIGHLIGHTS
Best in Class Operator DaVita Inc, is one of the largest providers of kidney care in the U.S., with a network of more than 2,675 outpatient dialysis centers serving approximately 200,800 patients (39% of outpatient dialysis patients in the U.S). DaVita, Inc. reported FY2023 revenue of $12.1 billion, is traded on the New York Stock Exchange (DVA) and holds a BB credit rating with S&P.
Growing Industry According to the latest U.S. Renal Data System Annual Report, more than 800,000 Americans are being treated for kidney failure in the U.S. Revenue from these treatments are approximately $31 billion and accounted for 17.9% of the U.S. gross domestic product. According to the U.S. Census Bureau, the U.S. population ages 65 and over is expected to be 83.7 million in 2050 - almost double its estimated population 43.1 million in 2012.
Certificate of Need State Connecticut is a certificate of need law (CON) state, meaning state laws limit the number of facilities to actual need. The Subject Property thus suits the community's demand very well, and any competitor would have to go through the rigorous state-regulated CON program to attempt to build a new facility resulting in limited competition.
Macroeconomic Changes Protection Approximately 89.5% of DaVita, Inc's total dialysis patients are covered under some form of government-based program, which means the company's profitability is somewhat insulated from the ups and downs experienced in the broader economy.
Affluent Demographics Within a 5-mile radius of the Subject Property, there is a population of 73,914 boasting an average household income of $118,259.
Visibility & Access The Subject Property is visibly located off US Highway 9 which is one of the main thoroughfares in Middletown. This location provides excellent visibility and easy access for all patients or customers of the Subject Property. Furthermore, the cross streets directly off the Property boast an average vehicles per day traffic count of 10,000.
NNN lease Structure with Attractive Rental Increases Each tenant is subject to a NNN lease which provides potential investors with a truly passive asset that requires minimal Landlord responsibilities. Each tenant is also subject to attractive 2% annual rental escalations throughout the remainder of their respective lease terms.
