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INVESTMENT HIGHLIGHTS
STRONG GUARANTORS - 70% of the square footage is leased by US Renal Care in a JV partnership with South Texas Renal Care Group. USRC provides a separate corporate guaranty for their pro-rata ownership of their leased space. The remaining suites are corporately guaranteed by South Texas Renal Care Group.
ABSOLUTE NNN EXPENSE STRCUTURE - All Leases are under an Absolute Triple Net expense structure where the Landlord has zero responsibilities.
ABOVE MARKET RENTAL ESCALATIONS - The Property leases feature annual rental increases of 3% percent through the initial term and continuing through the option periods.
NEW LONG LEASE TERM - Along with the new building are new leases with terms ranging between 6 to 10 years. The weighted lease term remaining for the Property is just under 7 years. All Leases feature two (2), five (5) year options to renew along with 3% rental increases.
NEW INSTITUTIONAL QUALITY CONSTRUCTION - The building was completed in 2019 and is institutional quality, positioning the facility to meet the ever-changing healthcare delivery landscape, and providing investors value for years to come.
INCOME TAX-FREE STATE - The State of Texas is one of only a few that do not impose a state income tax.
LOCAL OPERATING PARTNER – U.S. Renal Care has partnered with South Texas Renal Care Group in the San Antonio market. This provides them access to a constant source of referrals, and a growing network of 15+ nephrologists to manage patient care.
GROWING INDUSTRY – There are over 740,000 ESRD dialysis patients in the United States which has grown at an annual compound rate of approximately 6% over the last fifteen years, including approximately 125,000 newly reported cases of end-stage kidney disease in 2021.
INSULATED FROM MACROECONOMIC CHANGES – Approximately 78% of ESRD patients were covered under some form of government-based programs in 2014, which means that the company’s profitability is primarily insulated from the ups and downs experienced in the broader economy.
STRONG MARKET LOCATION – The Property is located off of Highway 151 (VPD 47K) and down the street from Baptist Emergency Hospital. The location features population figures of 307,304 within a 5-mile radius and average household income of $106,240 within a 1-mile radius. Located in the 7th largest city in the U.S., San Antonio has seen a population growth rate of 9% from 2017-2021.
