Offering Memorandum FRESENIUS MEDICAL CARE NET LEASE INVESTMENT 6.8% CAP RATE
TABLE OF CONTENTS EXECUTIVE SUMMARY 3 FINANCIAL OVERVIEW 4 AREA MAP 5 Nancy Miller, CCIM, MBA President, Net Lease Investment Group NMiller@BullRealty.com 404-876-1640 x118 RETAIL MAP 6 SURVEY 7 TENANT OVERVIEW 8 BROKER PROFILES 9 Broker Of Record: Justin Baker KY license #60389 Commercial Property Group, LLC 50 Glenlake Parkway, Suite 600 Atlanta, GA 30328 BullRealty.com Exclusively listed by Bull Realty, Inc. Page 2 of 9
EXECUTIVE SUMMARY OFFER HIGHLIGHTS Bull Realty is pleased to offer this single tenant, net leased Fresenius Medical Care in Louisville, Kentucky. Fresenius is the largest provider of services to renal patients in the world. This ± 7,680 SF building, constructed in 2013, is situated on a ± 0.7 acre outparcel of the Harley Center Shopping Center, less than a mile from I-265. This busy commercial corridor has traffic counts of over 34K vehicles per day. Nearby retailers include Walmart, Kroger, PNC Bank and Applebee's. The population within 3 miles is 69,935 with an average household income of $79,989. This NN lease runs through December 2025 and has a 10% rent increase in September 2018, making this a 6.8% cap investment. Landlord responsibilities are limited to repairs and maintenance of roof & structure, parking lot and landscaping. There are three 5-year renewal options, the first with a 6% rent increase and the second & third with 10% rent increases. Offered for sale at $1,763,000 or a 6.8% cap rate. HIGHLIGHTS Rare and outstanding medical single tenant net lease opportunity Fresenius Medical Care, publicly traded on the NYSE (symbol: FMS) with a BBB- rating by Standard & Poor s Corporate guaranteed NN lease with over 7 years remaining and 3 fiveyear options Located in a major Louisville retail trade area with over 34,000 vehicles per day Within 3 miles, population of nearly 70K and with an average HH income of almost $80K Limited landlord responsibilities Transferable 15-year roof warranty DEMOGRAPHICS 1 Mile 3 Miles 5 Miles Total Households: 4,778 28,708 69,051 Total Population: 11,184 69,935 165,448 Average HH Income: $71,584 $79,989 $72,333 AREA OVERVIEW Fern Creek, located in Jefferson County, Kentucky, is a suburb of Louisville, and is located 12 miles SE of Downtown. Louisville is the largest city in the state and the 29th most populous city in the USA with an area population of over 1.34M. Founded in 1778 and named after King Louis XVI of France, it is one of the oldest cities west of the Appalachians. Today, the area is best known for the Kentucky Derby (Churchill Downs) and for being the home of Kentucky Fried Chicken & Yum Brands and the University of Louisville. It is important to the shipping industry with the location of UPS s Worldport global air-freight hub at the Louisville International Airport. Louisville is located on the Ohio River and the Port of Louisville ranks as the seventh largest inland port in the U.S. Other major employers in the Louisville metro area include Brown-Forman Corporation, a significant player in the American whiskey industry, two major Ford plants, a GE appliance factory, Humana, Inc., Norton Healthcare, Kindred Healthcare Inc, Amazon and Papa John s. According to the North American Business Cost Review, 2017, Louisville has a pro-business attitude, low cost of doing business and low taxes, making this a favorable and supportive business environment. The region s diversified economy has out-performed the U.S. in job and income growth on a per capita basis over the last decade. Page 3 of 9
FINANCIAL OVERVIEW PROPERTY & LEASE INFORMATION Property Location: County: 6455 Bardstown Road Louisville, KY 40291 Jefferson Price: $1,763,000.00 Price/SF: $229.56 Building Size: Site Size: 7,680 SF 0.7 Acres Cap Rate: 6.8% RENT SCHEDULE Term Dates Monthly Rent Annual rent Increase % Initial 9/1/13-8/31/18 $9,081 $109,979 - Initial 9/1/18-8/31/23 $9,990 $119,882 10% Initial 9/1/23-8/31/25 $10,989 $131,868 10% Initial 9/1/25-12/31/25 $10,989 $43,955 - First Option 1/1/26-12/31/30 $11,648 $130,780 6% Second Option 1/1/31-12/31/35 $12,812 $153,744 10% Third Option 1/1/36-12/31/40 $14,093 $169,116 10% ADDITIONAL PHOTOS Year Built: 2013 Type Of Ownership: Fee Simple LEASE SUMMARY Tenant Trade Name: Lease Type: Fresenius NN Lease Commencement: 9/1/2013 Lease Expiration: 12/31/2025 Renewal Options: Rent Increases: Landlord Responsibilities: Tenant Responsibilities Warranty: 3 five-year 10% every 5 years during initial term. 6% in Option 1 and 10% in Options 2 & 3 Roof, structure, parking lot and landscaping Reimburses Landlord for taxes, property insurance and CAM Interior and HVAC maintenance Transferable 15-year roof warranty Page 4 of 9
AREA MAP Distance from Subject in miles (+/-): Distance from Subject in miles (+/-): I-265 less than 1 mile Louisville International Airport 11 miles University of Louisville 12 miles Page 5 of 9
RETAIL MAP Page 6 of 9
SURVEY Page 7 of 9
TENANT OVERVIEW FRESENIUS MEDICAL CARE Fresenius Medical Care is the world's largest provider of products and services for individuals with renal diseases of which around 3.2 million patients worldwide regularly undergo dialysis treatment. Through its network of 3,790 dialysis clinics, Fresenius Medical Care provides dialysis treatments for 322,253 patients around the globe. Fresenius Medical Care is also the leading provider of dialysis products such as dialysis machines or dialyzers. Along with its core business, the company provides related medical services in the field of Care Coordination. Fresenius Medical Care is listed on the Frankfurt Stock Exchange (FME) and on the New York Stock Exchange (FMS). The company is headquartered in Bad Homburg, Germany, with its North American headquarters in Waltham, Massachusetts. Corporate sales for Fresenius were over $21B in 2017, representing a 7% growth rate over 2016. According to the United States Renal Data System (www.usrds.org), in 2015, there were 124,114 newly reported cases of end state renal disease (ESRD) with a total of 703,243 individuals with this disease. The incidence of ESRD has risen about 20K cases per year since 2000. The common modes of treatment are hemodialysis, peritoneal dialysis and transplant. The vast majority over 87.9% use hemodialysis, the main service Fresenius provides, with 9.6% using peritoneal dialysis and 2.5% of patients having a kidney transplant. The majority of patients go to local dialysis clinics of which there are nearly 8000 locations throughout the US. For more information about Fresenius, go to https://fmcna.com/. Page 8 of 9
BROKER PROFILE NANCY MILLER, CCIM, MBA President, Net Lease Investment Group Bull Realty Inc. 50 Glenlake Parkway, Suite 600 Atlanta, GA 30328 404-876-1640 x118 NMiller@BullRealty.com Broker Of Record: Justin Baker KY license #60389 Commercial Property Group, LLC Professional Background Nancy Miller joined Bull Bull Realty Realty in 2001 in 2001 after after being being a client a client of the firm. of the Her firm. brokerage Her brokerage practice focuses practice onfocuses income on producing income single producing tenantsingle net lease tenant properties. net lease Nancy properties. leads Bull Nancy RealtyÕs leads National Bull Realty s Net Lease National Investment Net Group and works with investors, developers and sellers throughout the US. She is recognized as a savvy and Lease knowledgeable Investment retail Group net lease and expert. works Inwith the investors, last 3 years, developers she has brokered and sellers over $109M throughout in single the tenant US. She net lease is recognized transactions. as Nancya savvy publishes and knowledgeable a quarterly investor retail net newsletter, lease expert. a monthly In the electronic last 3 years, newsletter, she has participates brokered in over quarterly $109M national in single retail tenant industry net surveys lease done transactions. by Morgan Nancy Stanley, publishes and contributes a quarterly to Bull investor RealtyÕs newsletter, retail blogs. In addition, Nancy appears periodically on the Commercial Real Estate Show, a national weekly commercial real a estate monthly radio electronic show hosted newsletter, and produced participates in Atlanta in by quarterly broker, Michael national Bull. retail industry surveys done by Morgan Stanley, and contributes to Bull Realty s retail blogs. In addition, Nancy appears periodically Nancy has held a real estate license for over 25 years and is licensed in several states. She is a Life Member of on the the Atlanta Commercial Commercial Real Board Estate ofshow, Realtors a national and a member weekly commercial of the International real estate Council radio of show Shopping hosted Centers and produced (ICSC). Shein also Atlanta holdsby thebroker, prestigious Michael CCIMBull. designation. She also holds a Bachelor of Arts degree from Tulane University and an MBA from Emory UniversityÕs Goizueta Business School, where she is a guest lecturer. Nancy has held a real estate license for over 25 years and is licensed in several states. She is a Life Member of the Atlanta Commercial Board of Realtors and a member of the International Council of Shopping Centers (ICSC). She also holds the prestigious CCIM designation. She also holds a Bachelor of Arts degree from Tulane University and an MBA from Emory University s Goizueta Business School, where she is a guest lecturer. Bull Realty is a commercial real estate sales, leasing and advisory firm headquartered in Atlanta and licensed in nine Southeast states. The firm was founded in 1998 with two primary missions: to provide a company of advisors known for their integrity and to provide the best disposition marketing in the nation. Bull Realty Client is a services commercial include real estate disposition, sales, leasing acquisition, and advisory project firm leasing, headquartered tenant representation, in Atlanta and licensed asset in management nine Southeast and states. consulting The firmservices. was founded Advisors in 1998 focus with on specific two primary property missions: types toincluding provide aoffice, company retail, of advisors known for their integrity and to provide the best disposition marketing in the nation. Client services industrial, include disposition, multifamily, acquisition, land, healthcare, project leasing, senior housing, tenant representation, self-storage, automotive, asset management hospitality and and consulting single tenant services. net Advisors lease properties. focus on specific property types including office, retail, industrial, multifamily, land, healthcare, senior housing, self-storage, automotive, hospitality and single tenant net lease properties. The The firm produces America's America s Commercial Commercial Real Real Estate Estate Show, Show, a national a national video video show show and and podcast podcast enjoyed by enjoyed millions of by people millions around of people the country. around Industry the country. analysts, Industry leading analysts, marketleading participants market and participants the firm's founder and the Michael firm s Bull founder share market Michael intelligence, Bull share forecasts market intelligence, and success strategies. forecasts and The success show hasstrategies. aired everythe week show since 2010 on itunes, YouTube and www.creshow.com. The firm also produces Atlanta's Commercial Real Estate has Show aired available every on week AtlCREshow.com since 2010 on itunes, YouTube and www.creshow.com. The firm also produces Atlanta s Commercial Real Estate Show available on AtlCREshow.com Page 9 of 9