OFFERING MEMORANDUM DaVita Dialysis 655 Asheville Hwy Sylva, NC DaVita Dialysis, Sylva, NC 1
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C ontents 04 Investment Highlights 06 08 14 financial OVERVIEW tenant overview area OVERVIEW exclusively listed by Bryant Hoover Senior Associate bryant.hoover@matthews.com DIR 310.579.9693 MOB 310.774.2163 LIC # 01368589(CA) Kyle Matthews BROKER OF RECORD LIC # C27092 DaVita Dialysis, Sylva, NC 3
Investment Highlights PROPERTY 3% Annual Rental Increases major landlord hedge against inflation Certificate of Need (CON) state, which creates significant barriers to entry in this market for any potential competitors of DaVita. CON laws are designed to restrain health care facility costs and allow coordinated planning of new services and construction NN+ Lease sole responsibility of landlord is roof, structure, and foundation LOCATION Clinic is strategically located up the street of Harris Regional Hospital Very Active facility 16 Chairs, 2 shifts, 6 days a week Clinic is located next to Food Lion and national tenants that include McDonald s, Dollar General, Waffle House, Rite Aid, Dunkin Donuts, Wendy s, Taco Bell amongst others TENANT DaVita, Inc. (NYSE: DVA) is a Fortune 500 Company and is one of the largest kidney care companies in the world DaVita operates 2,445 dialysis locations across the United States and has an annual revenue of $13.77 Billion Warren Buffet s Berkshire Hathaway owns almost 20% of current outstanding DaVita stock 4 Offering Memorandum
DaVita Dialysis, Sylva, NC 5
financial overview 6 Offering Memorandum
DaVita Dialysis 655 Asheville Hwy Sylva, NC 28779 List Price...$1,956,234.85 CAP Rate - Current...7.00% Gross Leasable Area... ± 6,385 SF Lot Size...± 1.54 Acres Year Built...1995 Annualized Operating Data Current 2018 $ 136,936.44 7.00% 2019 $ 141,044.53 7.21% 2020 $ 145,275.87 7.43% 2021 $ 149,634.15 7.65% 2022 $ 154,123.17 7.88% 2023 $ 158,746.86 8.11% 2024 $ 163,509.27 8.36% Options: One, 5-year 2025 FMV 2026 FMV 2027 FMV 2028 FMV 2029 FMV Tenant Summary Tenant Trade Name DaVita Dialysis Type of Ownership Fee Simple Lease Guarantor Corporate Lease Type NN Roof and Structure Landlord Responsible Original Lease Term 10 Years Lease Commencement Date 7/1/2011 Lease Expiration Date 6/30/2024 Term Remaining on Lease ± 6.5 Years Increases 3% Per Year Options One, 5-Year Option DaVita Dialysis, Sylva, NC 7
tenant overview 8 Offering Memorandum
Property Name Company Trade Name Ownership Credit Rating (S&P) Davita Davita Inc. (NYSE: DVA) Public BB No. of Locations ± 2,445 No. of Employees ± 67,000 Headquartered Web Site Denver, Colorado www.davita.com Year Founded 1994 TENANT OVERVIEW DaVita Inc., a Fortune 500 company, is the parent company of DaVita Kidney Care and HealthCare Partners. DaVita Kidney Care is a leading provider of kidney care in the United States, delivering dialysis services to patients with chronic kidney failure and end stage renal disease. DaVita Kidney Care consistently differentiates itself from other kidney care companies and surpasses national averages for clinical outcomes. Through its Kidney Care division, the firm is one of the US largest providers of dialysis, providing administrative services to more than 2,445 outpatient centers across the US; it serves some 180,000 patients. The company also offers home-based dialysis services, as well as inpatient dialysis in about 900 hospitals. It operates two clinical laboratories that specialize in routine testing of dialysis patients and serve the company s network of clinics. Subsidiary HealthCare Partners (HCP) operates primary care clinics and physician practices in several states. STRATEGY While DaVita has primarily grown through acquisitions over the years, it also expands its operations through joint ventures and partnerships. In 2015 DaVita merged two of its business units -- DaVita Clinical Research and HealthCare Partners Clinical Research -- to further expand its extensive clinical research and data analytics services, specifically in patients with chronic kidney disease and ESRD, as well as primary care and chronic disease patients treated in an integrated care organization. A long-term strategy to expand into overseas markets for growth is in play. Through acquisitions and partnerships, DaVita was able to enter the Chinese, Brazilian and Saudi Arabian markets in 2015. GEOGRAPHIC REACH California, Florida, and Texas are home to about 30% of all DaVita dialysis centers, though the firm has locations in more than 45 US states and Washington, DC. Nearly all of the company s outpatient dialysis centers are either wholly owned or majority-owned by DaVita. Currently, the company s international operations comprise a small fraction of its total business at 118 outpatient dialysis centers in 10 countries. The company has established a presence in select international markets, including Europe, Latin America, the Middle East, and the Asia/Pacific region. Colombia, Germany, India, and Malaysia together account for more than 70% of DaVita s outpatient dialysis centers outside of the US. DaVita Dialysis, Sylva, NC 9
the offering Property Name Property Address Oceanside Blvd ± 31,792 College Blvd ± 40,116 DaVita Dialysis 655 Asheville Hwy Sylva, NC 28779 Assessor s Parcel Number 7642-60-7465 Site Description Number of Stories One Year Built 1995 Gross Leasable Area (GLA) Lot Size Type of Ownership Landscaping Topography ± 6,385 SF ± 1.54 Acres (67,082 SF) Fee Simple Professional Generally Level Construction Foundation Framing Exterior Parking Surface Roof Concrete Slab Steel Brick Asphalt Flat 10 Offering Memorandum
Parcel Map Asheville Hwy ± 24,000 ADT DaVita Dialysis, Sylva, NC 11
TENANT MAPS Harris Women s Care Harris Pediatric Care Subject Property Harris Regional Hospital Harris Women s Care 12 Offering Memorandum
Harris Pediatric Care Harris Regional Hospital Harris Women s Care Subject Property DaVita Dialysis, Sylva, NC 13
area overview Sylva, NC Sylva, North Carolina is an incorporated town in Jackson County, located in the Plott Balsam Mountains. The population started to grow in the early 20th century, when the railroad was developed, and eventually became a strong, diverse town. Sylva is now the center of the county holding the county s high school, library, hospital, and Justice Center. The best place for outdoor activities is at Great Smoky Mountains National Park. The park offers everything including hiking trails, waterfalls, and several parks. The Sylva community is part of more than 1,200 communities and neighborhoods that have joined the Main Street America Accredited program. The nation-wide program was created to help communities all over the nation develop high-quality places and help build better communities and maintain the overall economy. Residents of the Sylva area are constantly working to help develop their town. County demographics POPULATION 1 Mile 3 Mile 5 Mile 2022 Projection 2,182 8,589 16,713 2017 Estimate 2,168 8,447 16,245 2010 Census 2,230 8,475 15,925 2000 Census 2,087 7,645 13,100 Growth 2017-2022 0.65% 1.68% 2.88% HOUSEHOLDS 1 Mile 3 Mile 5 Mile 2022 Projection 957 3,868 7,607 2017 Estimate 946 3,784 7,318 2010 Census 965 3,756 7,042 2000 Census 932 3,402 5,640 Growth 2017-2022 1.16% 2.22% 3.95% INCOME 1 Mile 3 Mile 5 Mile 2017 Est. Average Household Income $52,357 $54,619 $48,770 14 Offering Memorandum
Western Carolina University (WCU) Just six miles outside of Sylva, in Cullowhee, is the Western Carolina University. It is a public university that is part of the University of North Carolina system. The university was originally created to educate mountain residents, and eventually became a renowned university. Today, WCU accepts over 10,000 students each semester. The main campus is on the Tuskegee River, close to a Cherokee Indian Reservation. Because of the close ties with the Cherokee Indians, WCU holds specific traditions to honor the tribe. DaVita Dialysis, Sylva, NC 15
CONFIDENTIALITY & DISCLAIMER STATEMENT This Offering Memorandum contains select information pertaining to the business and affairs of DaVita Dialysis located at 655 Asheville Hwy, Sylva, NC 28779 ( Property ). It has been prepared by Matthews Real Estate Investment Services. This Offering Memorandum may not be all-inclusive or contain all of the information a prospective purchaser may desire. The information contained in this Offering Memorandum is confidential and furnished solely for the purpose of a review by a prospective purchaser of the Property. It is not to be used for any other purpose or made available to any other person without the written consent of Seller or Matthews Real Estate Investment Services. The material is based in part upon information supplied by the Seller and in part upon financial information obtained from sources it deems reliable. Owner, nor their officers, employees, or agents makes any representation or warranty, express or implied, as to the accuracy or completeness of this Offering Memorandum or any of its contents and no legal liability is assumed or shall be implied with respect thereto. Prospective purchasers should make their own projections and form their own conclusions without reliance upon the material contained herein and conduct their own due diligence. By acknowledging your receipt of this Offering Memorandum for the Property, you agree: 1. The Offering Memorandum and its contents are confidential; 2. You will hold it and treat it in the strictest of confidence; and 3. You will not, directly or indirectly, disclose or permit anyone else to disclose this Offering Memorandum or its contents in any fashion or manner detrimental to the interest of the Seller. Owner and Matthews Real Estate Investment Services expressly reserve the right, at their sole discretion, to reject any and all expressions of interest or offers to purchase the Property and to terminate discussions with any person or entity reviewing this Offering Memorandum or making an offer to purchase the Property unless and until a written agreement for the purchase and sale of the Property has been fully executed and delivered. If you wish not to pursue negotiations leading to the acquisition of the Property or in the future you discontinue such negotiations, then you agree to purge all materials relating to this Property including this Offering Memorandum. A prospective purchaser s sole and exclusive rights with respect to this prospective transaction, the Property, or information provided herein or in connection with the sale of the Property shall be limited to those expressly provided in an executed Purchase Agreement and shall be subject to the terms thereof. In no event shall a prospective purchaser have any other claims against Seller or Matthews Real Estate Investment Services or any of their affiliates or any of their respective officers, Directors, shareholders, owners, employees, or agents for any damages, liability, or causes of action relating to this solicitation process or the marketing or sale of the Property. This Offering Memorandum shall not be deemed to represent the state of affairs of the Property or constitute an indication that there has been no change in the state of affairs of the Property since the date this Offering Memorandum.
exclusively listed by Bryant Hoover Senior Associate bryant.hoover@matthews.com DIR 310.579.9693 MOB 310.774.2163 LIC # 01368589(CA) Kyle Matthews BROKER OF RECORD LIC # C27092 DaVita Dialysis 655 Asheville Hwy Sylva, NC DaVita Dialysis, Sylva, NC 17