Fresenius Medical Center 1534 N Hoskins Rd, Charlotte, NC 28216 OFFERING MEMORANDUM
Confidentiality & Disclaimer Statement This Marketing Brochure contains select information pertaining to the business and affairs of Fresenius Medical Center located at 1534 N Hoskins Rd, Charlotte, NC 28216 here to referred to as Property. Information in this Marketing Brochure is confidential and provided solely for the purpose of a review by a prospective purchaser of the Property. It is not to be used for any other purpose and may not be made available to any other person without the written consent of the Seller or Matthews Retail Group, Inc. This Marketing Brochure has been prepared by Matthews Retail Group, Inc. (also known as Matthews Retail Advisors) based in part upon information supplied by the Seller and in part upon financial information obtained from sources deemed reliable by Matthews Retail Group, Inc. However, Matthews Retail Group, Inc. has not and will not verify any of this information, nor has Matthews Retail Group, Inc. conducted any investigation regarding these matters. Matthews Retail Group, Inc. makes no guarantee, warranty or representation whatsoever about the accuracy or completeness of any information provided. It is the Buyer s responsibility to independently confirm the accuracy and completeness of all material information before completing any purchase. This Marketing Brochure is not a substitute for the Buyer s thorough due diligence investigation of this investment opportunity. Matthews Retail Group, Inc. expressly denies any obligation to conduct a due diligence examination of this Property for the Buyer. Any projections, opinions, assumptions or estimates used in this Marketing Brochure are for example only and do not represent the current or future performance of this Property. The value of a net leased property to the Buyer depends on factors that should be evaluated by the Buyer and their tax, financial and legal advisors. Buyer and Buyer s tax, financial, legal, and construction advisors should conduct a careful, independent investigation of any property to determine to their satisfaction the suitability of the Property for their investment goals. Like all real estate investments, this investment carries significant risks. Buyer and Buyer s legal and financial advisors must request and carefully review all legal and financial documents related to the Property and tenant. While the tenant s past performance at this or other locations is an important consideration, it is not a guarantee of future performance. Similarly, the lease rate for some properties, including newly-constructed facilities or newly-acquired locations, may be set based on a tenant s projected sales with little or no record of actual performance, or comparable rents for the area. Returns are not guaranteed; the tenant and any guarantors may fail to pay the lease rent or property taxes, or may fail to comply with other material terms of the lease; cash flow may be interrupted in part or in whole due to market, economic, environmental or other conditions. Regardless of tenant history and lease guarantees, Buyer is responsible for conducting his/her own investigation of all matters affecting the intrinsic value of the Property and the value of any long-term lease, including the likelihood of locating a replacement tenant if the current tenant should default or abandon the Property, and the lease terms that Buyer may be able to negotiate with a potential replacement tenant considering the location of the Property, and Buyer s legal ability to make alternate use of the Property. By accepting this Marketing Brochure you agree to release the Seller and Matthews Retail Group, Inc. of any and all liability and hold the parties harmless from any kind of claim, cost, or expense arising out of your investigation and/or purchase of this Property. NON-ENDORSEMENT NOTICE Matthews Retail Group, Inc. is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this Marketing Brochure. The presence of any corporation s logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Matthews Retail Group, Inc., its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Matthews Retail Group, Inc., and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers. ii
TABLE OF CONTENTS PRICING AND FINANCIAL ANALYSIS Investment Overview............................. 2 Financial Overview.............................. 3 Company Overview.............................. 4 Property Description Property Overview............................... 6 Bird s Eye.................................... 7 Tenant Map................................... 8 Regional Map.................................. 9 Site Plan Map..................................10 DEMOGRAPHICS Demographics Report............................. 12 City Overview................................. 13 PRESENTED BY Michael Moreno Associate License No. 01982943 O 310.919.5838 M 818.522.4497 michael.moreno@matthews.com Braden Crockett Senior Associate License No. 01946071 O 310.919.5814 M 714.345.6206 braden.crockett@matthews.com Aron Cline VP & Sr. Director License No. 01904371 O 310.919.5816 M 818.632.0233 aron.cline@matthews.com Kyle Matthews Broker of Record License No. 288917 iii
PRICING AND FINANCIAL ANALYSIS
Investment Overview Michael Moreno, Braden Crockett, and Aron Cline are pleased to offer for sale to qualified investors a fee-simple interest in a single-tenant Fresenius Medical Care property located in one of the nation s fastest growing real estate markets. This double-net dialysis facility is located in Charlotte, NC (recently named the 2nd fastest growing big city in the United States) and is wholly occupied by Fresenius Medical Care under a newly-extended 10 year lease. Fresenius recently executed a faciilty expansion plan that increases their building s footprint by 2,000 SF and their rent by 13%, showing the tenant s long-term commitment to this location. The tenant has long-term plans for this location, as Charlotte s growing community continues to have a sustained need for the tenant s services. Investment Highlights Property Details 100% occupied by Fresenius Medical Care (The largest dialysis provider in the world) Corporate Guarantee - This site will be financially backed by FMC Fresenius recently executed a 10 year amendment and expansion plan that increased their rent by 13% at this facility- FMC is extremely committed to this location NN Investment - Minimal Landlord responsibilities offer potential investor very passive net lease investment (roof, structure, parking lot, major HVAC repairs) Annual rental increases - Lease calls for 1.78% annual increases throughout first 5 years of base term - strong hedge against inflation Location Subject property is strategically located in an underserved portion of Charlotte s market - only dialysis facility within 5 mile radius North Carolina is a Certificate of Need (CON) State, which reduces future medical competition for this dialysis center and limits competitors from entering market High Growth Demographics: Population within a 1-mile radius has grown 21% in the past 15 years Tenant Fresenius Medical Care (NYSE : FMS is the world s largest dialysis provider, and a fortune 500 company with a $26 Billion market cap The company currently holds an S&P Credit Rating of BBB- (Investment Grade Credit) Fresenius operates over 2,100 dialysis facilities in North America alone, with the company continuing its expansion domestically and overseas 2
Financial Overview Executive Summary 1534 N Hoskins Rd Charlotte, NC 28216 List Price.............................. $3,225,000 Gross Leasable Area.........................12,016 SF CAP Rate - Current............................ 6.65% Year Built................................. 2002 Lot Size....................... ± 3.00 Acres (130,680 SF) Annualized Operating Data Monthly Rent Annual Rent Rent/SF CAP Rate 10/01/16-09/30/17 $17,874.09 $214,489.10 $17.85 6.65% 10/01/17-09/30/18 $18,191.49 $218,297.88 $18.17 6.77% 10/01/18-09/30/19 $18,515.24 $222,182.84 $18.49 6.89% 10/01/19-09/30/20 $18,845.46 $226,145.50 $18.82 7.01% 10/01/20-09/30/21 $19,182.28 $230,187.41 $19.16 7.14% 10/01/21-09/30/26 $19,520.42 $234,245.00 $19.49 7.26% *Option 1-9/30/31 FMRV FMRV FMRV FMRV *Option 2-9/30/36 FMRV FMRV FMRV FMRV *Estimated Fair Market Rental Value (FMRV) is around $20.00/SF Tenant Summary Tenant Trade Name Type of Ownership Lease Guarantor Lease Type Roof and Structure Original Lease Term Fresenius Medical Care Fee Simple Corporate NN Landlord Responsible 10 Years Lease Commencement Date 10/1/2016 Rent Commencement Date 10/1/2016 Lease Expiration Date 9/30/2026 Term Remaining on Lease 10 Years Increases 1.78% annual rental increases through 2021 Options Two (2) Five (5) Year Options 3
Lease Abstract Tenant: Fresenius Medical Care Property Address: 1534 N. Hoskins Rd. Charlotte, NC Date Of Lease: May 24, 2001 Lease Commencement: October 1, 2016 Lease Expiration: September 30, 2026 Rent Increases: 1.78% annual increases Renewal Options: Two (2) Five (5) Year Options Annual Rent: $214,489.10 Real Estate Taxes: Tenant is responsible Insurance: Tenant is responsible Utilities: Tenant is responsible Repairs and Maintenance: Landlord shall, without expense to Tenant, maintain and make all necesarry repairs to the foundations, structure, load bearing walls, exterior walls, roof, gutters, downspouts, water mains, gas and sewer lines, sidewalks, private roadways, parking areas, common areas, and loading docks Landlord shall only be reponsible for the major repairs to and replacement of the heating/air conditioning systems and other systems serving the Premise 4
Company Overview Fresenius Medical Care s history in health care spans hundreds of years from where it began as a 15th century pharmacy ins Frankfurt, Germany. It was in 1996 whe Fresenius USA, Inc. and National Medical Care s North American dalysis businesses merged to form Fersenius Medical Care North America, thus becoming the continent s leading dialysis provider and renal products manufacturer. As a premier health care company, Fresenius Medical Care North America is focused on delivering the highest quality care to people with renal and other chronic conditions. Property Name Property Type Parent Company Trade Name Ownership Credit Rating Rating Agency Revenue Net Income Stock Symbol Board Fresenius Medical Center Net Lease Dialysis Fresenius SE & Co. KGaA Public BBB- S&P $30.18 Billion $1.48 Billion FMS NYSE No. of Locations 2,200 No. of Employees 222,305 Headquartered Web Site Bad Homburg Hessen, Germany www.fresenius.se Year Founded 1912 5
Property Description
Property Overview THE OFFERING Property Name................... Fresenius Medical Center Property Address..................... 1534 N Hoskins Rd Charlotte, NC 28216 Assessor s Parcel Number.................... 039-961-26 SITE DESCRIPTION Number of Stories............................. One Year Built................................. 2002 Gross Leasable Area (GLA)..................... 12,016 SF Lot Size...................... ± 3.00 Acres (130,680 SF) Type of Ownership......................... Fee Simple Parking.......................... ± 61 Surface Spaces Parking Ratio.......................... 6.10 : 1,000 SF Landscaping........................... Professional Topography........................... Generally Level CONSTRUCTION Foundation........................... Concrete Slab Framing...................................Wood Exterior......................... Painted Wood/Stucco Parking Surface.............................Asphalt Roof..................................... Flat 7 PROPERTY DESCRIPTION
Bird s Eye 8
Tenant Map 9 PROPERTY DESCRIPTION
Regional Map 10
DEMOGRAPHICS
Demographics Report Population 1-Mile 3-Mile 5-Mile 2021 Projection 6,924 64,460 203,942 2016 Estimate 6,531 60,227 188,068 2010 Census 6,047 54,367 166,039 2000 Census 5,260 48,068 131,878 Growth 2016-2021 6.01% 7.03% 8.44% Growth 2010-2016 8.01% 10.78% 13.27% Growth 2000-2010 14.96% 13.10% 25.90% Households 2021 Projection 2,698 23,954 81,486 2016 Estimate 2,541 22,262 74,638 2010 Census 2,341 19,839 64,912 2000 Census 2,046 17,510 50,901 Growth 2016-2021 6.16% 7.60% 9.17% Growth 2010-2016 8.55% 12.21% 14.98% Growth 2000-2010 14.44% 13.30% 27.53% Income $0 - $15,000 22.08% 21.75% 17.68% $15,000 - $24,999 10.24% 13.21% 11.66% $25,000 - $34,999 16.10% 14.29% 12.59% $35,000 - $49,999 17.99% 17.68% 16.13% $50,000 - $74,999 17.72% 16.95% 17.38% $75,000 - $99,999 8.23% 7.86% 9.23% $100,000 - $124,999 3.90% 3.80% 5.57% $125,000 - $149,999 1.79% 1.85% 2.95% $150,000 - $199,999 1.45% 1.52% 2.85% $200,000 - $249,999 0.30% 0.47% 1.22% $250,000 - $499,999 0.18% 0.49% 1.80% $500,000+ 0.01% 0.14% 0.94% 2016 Est. Average Household Income $44,807 $46,164 $61,933 2016 Est. Median Household Income $36,314 $35,639 $42,513 12 DEMOGRAPHICS
City Overview Charlotte, north carolina Charlotte is the largest city in North Carolina and the second largest Banking Center in the country. It is known for being a world-class city through a variety of art, science, and historical attractions, all while retaining its small town charm. Referred to as the Queen City, Charlotte is the home of NASCAR and the Charlotte Motor Speedway. 90 percent of the NASCAR Sprint Cup Series teams are headquartered within 50 miles of Charlotte. The quality of life enjoyed by residents of Metropoliatn Charlotte is an important factor in the tremendous growth of the city and surrounding rural acreage. An undisputed hub for entertainment and culture, the city draws regional audiences to performances and events at the North Carolina Blumenthal Performing Arts Center and other venues. Recreational opportunities are abundant from Atlantic Ocean water and whitewater rafting at the U.S. National Whitewater Center to roller coasters at Carrowinds and hiking in one of the many surrounding national parks and reserves. TOP EMPLOYERS - Charlotte, NC 1. Carolinas HealthCare System 2. Wells Fargo Company 3. American Airlines 4. Bank of America 5. Charlotte-Mecklenburg Schools 6. Lowe s 7. Norvant Health 8. Walmart & Sam s Club Stores 9. City of Charlotte 10. Daimler Trucks North America LLC 13
Fresenius Medical Center 1534 N Hoskins Rd, Charlotte, NC 28216 OFFERING MEMORANDUM Michael Moreno Associate License No. 01982943 O 310.919.5838 M 818.522.4497 michael.moreno@matthews.com Braden Crockett Senior Associate License No. 01946071 O 310.919.5814 M 714.345.6206 braden.crockett@matthews.com Aron Cline VP & Sr. Director License No. 01904371 O 310.919.5816 M 818.632.0233 aron.cline@matthews.com Kyle Matthews Broker of Record License No. 288917 841 Apollo Street, Suite 150 El Segundo, CA 90245 www.matthews.com