New NorCal DaVita | 15 Year Lease

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Available $7,716,000 - Retail - Single Tenant
Cap Rate:  5%Size:  2.06 AcresTerm:  15 Print

 Investment Offering & Highlights

  • New 15 year net lease with 10% rent increases every 5 years throughout the lease including the renewal options
  • Strong Fundamentals – relatively low rent per sq. ft. of $28.37 per year – $2.36 per month
  • Rare infill Northern California net lease investment opportunity
  • Brand new construction build-to-suit medical office for DaVita Kidney Care with ample on-site parking
  • Strategically situated fronting the high traffic arterial of West Lane (33,700 ADT) and directly across the street from the Stockton Kaiser Permanente Medical Facility – a major referral source for DaVita
  • Located in a major medical and retail corridor just off the high traffic intersection of West Lane and Hammer Lane with combined traffic counts of over 72,000 vehicles per day
  • Adjacent to Costco Wholesale, and other tenants in the immediate area include Walgreens, Stockton Honda, Toyota Town of Stockton, Big Lots, DD’s Discounts, among numerous others
  • Strong demographics with over 280,150 residents with an average household income of 73,690 within five miles of the subject property
  • DaVita, Inc. (NYSE:DVA) is one of the fastest growing companies on the Fortune 200 with a total stockholder’s equity of $3.70 billion total and 2018 revenues of 11.41 billion
  • DaVita treats 42% of all dialysis patients in the United States
  • Warren Buffett’s Berkshire Hathaway owns a 23% stake in DaVita, it’s third largest holding by ownership percentage

Property Description

Cushman & Wakefield Net Lease Group is pleased to offer a brand new 13,600± sq. ft. state-of-the-art medical office building located in Stockton California. The property is leased to Total Renal Care, Inc., and guaranteed by DaVita, Inc., for 15 years from July 1, 2019 at an annual rent of $385,832, increasing by 10% every five years. The lease is net with the tenant responsible for taxes, insurance and maintenance of the premises. The landlord is responsible for maintaining and replacing the roof, structure, exterior plumbing and electrical systems, and replacement of HVAC (not maintenance). Tenant will reimburse landlord on an amortized basis the cost for replacement of the roof, parking areas and HVAC. Tenant will also reimburse up to $1,000/year in roof maintenance expenses.

Please use the following link to access the full offering memorandum for the DaVita located in Stockton, CA: https://www.crexi.com/properties/220065/california-davita-norcal-long-term-w-increases

Property Location