115 wilson road | sanford, north carolina · maintenance and repair of parking areas, curbing,...

FRESENIUS MEDICAL CARE OF SANFORD, NC115 WILSON ROAD | SANFORD, NORTH CAROLINA

NET LEASE GROUP

JONATHAN [email protected]

Direct: 832-602-3383

OFFERING MEMORANDUM115 WILSON ROAD, SANFORD, NORTH CAROLINA 27332

JONATHAN PERANICHManaging Partner

EMAIL: [email protected]

DIRECT: (832) 602-3383

FRESENIUS MEDICAL CARESANFORD, NORTH CAROLINA

Jonathan Peranich | (832) 602-3383 | [email protected] 115 Wilson Road, Sanford NC 27332 |

TABLE OF CONTENTSFRESENIUS MEDICAL CARE | SANFORD, NC

04 INVESTMENT OVERVIEW

06 PRICING & FINANCIALS

08 INVESTMENT HIGHLIGHTS

09 SITE PLAN

10 FLOOR PLAN

11 TENANT OVERVIEW

12 NET LEASE STRUCTURE

13 LOCATION OVERVIEW

15 CERTIFICATE OF NEED

17 CONTACT INFO


INVESTMENT OVERVIEWPeranich Huffman Net Lease Group is pleased to offer for sale on an exclusive basis, the Fresenius Medical Care facility of Sanford, North Carolina. Constructed in 2013, the 9,620 square foot facility is leased on a Corporately Guaranteed, long term net basis to Fresenius Medical Care.

With 9 Years of primary term remaining, the lease provides for 10% rent escalations every 5 years & (3) 5-Year renewal options.

Offered at a 6.25% capitalization rate, the offering provides an investor with the opportunity to acquire a property with a strong operation that is home to a national medical tenant that exemplifies a reputation of consistency for both patients and the real estate investment community.

FACILITY TYPESINGLE TENANT

LEASE STRUCTURENET LEASE INVESTMENT

RENTABLE AREA9,620 SF

LOT SIZE1.34 ACRES

YEAR BUILT2013

GUARANTOR

OPTION PERIODS(3) 5-YEAR

ESCALATIONS10% EVERY 5 YEARS

FRESENIUS CORPORATE


Lease Term Rent / SF Annual Rent Escalation

Sep 2019 - Aug 2020 $18.98 $182,557 -

Sep 2020 - Aug 2021 $18.98 $182,557 -

Sep 2021 - Aug 2022 $18.98 $182,557 -

Sep 2022 - Aug 2023 $18.98 $182,557 -

Sep 2023 - Aug 2024 $20.87 $200,812 10%

Sep 2024 - Aug 2025 $20.87 $200,812 -

Sep 2025 - Aug 2026 $20.87 $200,812 -

Sep 2026 - Aug 2027 $20.87 $200,812 -

Sep 2027 - Aug 2028 $20.87 $200,812 -

INVESTMENT OVERVIEW

OPTION TERM OVERVIEW: Base Rent for each of the (3) 5-Year Options Periods shall be equal to the lesser of:

(i) Fair Market Value or,(ii) an amount equal to 100% of the Base Rent paid during the final 12-month period of the Initial or preceding Option Term, as applicable.

Notwithstanding the foregoing, in no event shall the Base Rent for an Option Term be less than the Base Rent for the 23-month period preceding the Option Term.


PRICING & FINANCIALS

$ PURCHASE PRICE$2,852,500

CAP RATE6.40%

NOI$182,557

%

% AVG CAP RATE THROUGH PRIMARY TERM

6.75%


INVESTMENT HIGHLIGHTS

Located on a 1.34 acre parcel, surrounded by major retailers such as Wal-Mart, Chick-Fil-A, and Lowes.

Corporately Guaranteed by Fresenius Medical Care, Inc.

Low Base Rent Per Square Foot at $18.98.

9 Years of Primary Lease Term Remaining, with (3) 5-Year Options to Renew thereafter.

Located in Certificate of Need State, providing for a regulatory high-barrier-of-entry dialysis market.

10% Rent Escalations Every 5 Years.


SITE PLAN


FLOOR PLAN


Fresenius Medical Care is the world’s leading provider of products and services for people with chronic kidney failure. It cares for more than 329,000 patients in our global network of more than 3,815 dialysis clinics.

Fresenius also operates 41 production sites on all continents, to provide dialysis products such as dialysis machines, dialyzers and related disposables.

Through our industry-leading network of dialysis facilities, outpatient cardiac and vascular labs, and urgent care centers, as well as the country’s largest practice of hospitals and post-acute providers, Fresenius Medical Care provides coordinated health care services at pivotal care points for hundreds of thousands of chronically ill customers throughout the continent. Their integrated approach helps to not only improve patients’ health outcomes, but also reduce the total cost of care.

As the world’s only vertically integrated renal dialysis company, Fresenius’ strategy is geared toward sustainable growth, whereas they aim to continuously improve the quality of life of patients with kidney disease by offering innovative products and treatment concepts of the highest quality. Developing innovative products and continuously improving the treatments is an inherent part of their growth strategy.

Fresenius Medical Care’s corporate headquarters are in Bad Homburg v.d.H., Germany. The headquarters of North America are in Waltham, Massachusetts and the headquarters of Asia-Pacific are located in Hong Kong.

200,000+ USPatients

114,000+ Employees

$18 Billion in Annual Revenues

$21 Billion inMarket Cap

50+ Countries Served

2,450+ US Clinics

TENANT OVERVIEW


NET LEASE STRUCTURE

LANDLORD RESPONSIBILITIES

Landlord shall maintain and make all necessary repairs/replacements to the exterior and structural portions of the property without limitation: foundation, including the slab, structure, load bearing walls, exterior walls, the roof and roof supports, columns, retaining walls, gutters, downspouts, flashings, and footings.

TENANT RESPONSIBILITIES

Tenant shall, at Tenant’s sole cost and expense, maintain and make all necessary repairs and replacements to the non-structural portions of the interior of the building.

Tenant shall reimburse the costs and expenses of the maintenance and repair of parking areas, curbing, sidewalk and directional markers, ice and snow removal, water mains, gas and sewer lines, private roadways, landscape, loading docks.

*Tenant shall, at its sole cost and expense, be responsible for repairs to or replacement of the HVAC up to Three Thousand Dollars ($3,000.00).

Expense Category Tenant's Responsibility

Landlord's Responsibility

Structural/Roof Replacement √

Roof Repair √

Landscaping & Snow Removal √

HVAC Repair √*

HVAC Replacement √*

Janitorial √

Parking Lot Repair √

Parking Lot Replacement √

Taxes √

Insurance √

Utilities √

Common Area Maintenance √*


DEMOGRAPHIC PROFILE 3-MILES 5-MILES 10-MILES

Population 16,733 36,930 69,743Population Growth 2000 - 2010 13.5% 18.6% 18.5%Households 6,032 13,950 26,330Households Growth 2000 - 2010 12.8% 18.4% 19.5%Average Household Income $49,764 $55,644 $63,646

The city of Sanford, North Carolina had a population of 28,518 in 2009 and serves as the county seat in Lee County. Because Sanford sits where white beach sand from the coast meets the Piedmont clay, the city has the right ingredients to be a large producer of clay bricks. In 1959, Sanford produced 10% of the bricks in the United States and was named “Brick Capital of the USA”. Today large brick production continues via manufacturers such as General Shale and Lee Brick & Tile.

Sanford also produces textiles, and has since seen the influx of the biotech industry with the Wyeth Vaccines, aka Pfizer, facility becoming the area’s largest employer in 2006.

Situated nearly equidistant from the Greensboro, Raleigh/Durham/RTP, and Fayetteville metro areas, Sanford is well positioned to provide manufacturing, services, and housing throughout the region for business and industry.

LOCATION OVERVIEW


LOCATION OVERVIEW


CERTIFICATE OF NEED

As North Carolina has established stringent Certificate of Need laws that impose regulations governing the treatment of End Stage Renal Disease and the construction of new dialysis facilities, it provides a high regulatory barrier of entry marketplace whereas the community must show evidence of demand before additional operations may be established.

CERTIFICATE OF NEED REGULATIONS


WA

CERTIFICATE OF NEED STATES PHNLG.comCurrently, there are only 12 “Certificate of Need” states that impose regulations which govern the treatment of End Stage Renal Disease. A CON law regulates the construction and operations of new dialysis facilities. The basic premise underlying this CON regulation is that excess capacity (in the form of facility overbuilding) directly results in health care price inflation.

Each of these states place limitations on the development of new facilities, which prevents competition with the subject property and creates a high barrier of entry for competition; therefore, benefiting healthcare real estate landlords.

• Alabama

• Alaska

• Hawaii

• Illinois

• Maine

• Mississippi

• New York

• North Carolina

• Vermont

• Washington

• West Virginia

• District of Columbia

Offers should be submitted electronically to

Jonathan Peranichat [email protected] and include the

following information:

Purchase Price

Sources of Debt & Equity

Closing Period

Earnest Money

Other Terms

Peranich Huffman Net Lease Group is a privately held real estate brokerage firm specializing in single tenant net leased medical office investment sales throughout the nation.

Our firm facilitates the purchase & sale of commercial real estate tenanted by Dialysis Operators, Freestanding Emergency Departments, and Surgery Centers.

ABOUT US

CONFIDENTIAL MEMORANDUM & DISCLAIMER

Peranich Huffman Net Lease Group (“Agent”) has been engaged as the exclusive agent for the sale of the Fresenius Medical Care in Sanford, NC (the “Property”), by the owner of the Property (“Seller”). The Property is being offered for sale in an “as-is, where-is” condition and Seller and Agent make no representations or warranties as to the accuracy of the information contained in this Offering Memorandum.

The enclosed materials include highly confidential information and are being furnished solely for the purpose of review by prospective purchasers of the interest described herein. Neither the enclosed materials nor any information contained herein is to be used for any other purpose or made available to any other person without the express written consent of the Seller. Each recipient, as a prerequisite to receiving the enclosed, should be registered with Peranich Huffman Net Lease Group as a “Registered Potential Investor” or as “Buyer’s Agent” for an identified “Registered Potential Investor.” The use of this Offering Memorandum and the information provided herein is subject to the terms, provisions and limitations of the confidentiality agreement furnished by Agent prior to delivery of this Offering Memorandum. The enclosed materials are being provided solely to facilitate the prospective investor’s own due diligence for which it shall be fully and solely responsible. The material contained herein is based on information and sources deemed to be reliable, but no representation or warranty, express or implied, is being made by Agent or Seller or any of their respective representatives, affiliates, officers, employees, shareholders, partners and directors, as to the accuracy or completeness of the information contained herein. Summaries contained herein of any legal or other documents are not intended to be comprehensive statements of the terms of such documents, but rather only outlines of some of the principal provisions contained therein. Neither the Agent or the Seller shall have any liability whatsoever for the accuracy or completeness of the information contained herein or any other written or oral communication or information transmitted or made available or any action taken or decision made by the recipient with respect to the Property. Interested parties are to make their own investigations, projections and conclusions without reliance upon the material contained herein.

Seller reserves the right, at its sole and absolute discretion, to withdraw the Property from being marketed for sale at any time and for any reason. Seller and Agent each expressly reserves the right, at their sole and absolute discretion, to reject any and all expressions of interest or offers regarding the Property and/or to terminate discussions with any entity at any time, with or without notice. This offering is made subject to omissions, correction of errors, change of price or other terms, prior sale or withdrawal from the market without notice. Agent is not authorized to make any representations or agreements on behalf of Seller.

Seller shall have no legal commitment or obligation to any interested party reviewing the enclosed materials, performing additional investigation and/or making an offer to purchase the Property unless and until a binding written agreement for the purchase of the Property has been fully executed, delivered, and approved by Seller and any conditions to Seller’s obligations thereunder have been satisfied or waived.

By taking possession of and reviewing the information contained herein, the recipient agrees that (a) the enclosed materials and their contents are of a highly confidential nature and will be held and treated in the strictest confidence and shall be returned to Agent or Seller promptly upon request; and (b) the recipient shall not contact employees or tenants of the Property directly or indirectly regarding any aspect of the enclosed materials or the Property without the prior written approval of the Seller or Agent; and (c) no portion of the enclosed materials may be copied or otherwise reproduced without the prior written authorization of Seller or Agent or as otherwise provided in the Confidentiality and/or Registration Agreement executed and delivered by the recipient(s) to Peranich Huffman Net Lease Group.

115 WILSON ROAD, SANFORD NORTH CAROLINA 27332

115 wilson road | sanford, north carolina · maintenance and repair of parking areas, curbing,...

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