Net Lease DaVita Property Profile and Cap Rates

Net Lease DaVita – Typical Property and Lease Terms

 

Price Range:	$2mm - $8 mm
Cap Rate:	5.75%
Net Income:	$225,000
Price Per foot:	$400 PSF
Building Size:	6,000-12,000 SF
Lot Size:	.75 Acre
Escalations:	2% annual
Lease Term:	15 Years
Lease Type:	NNN
Credit Rating:	BB (S&P)

 

Tenant Company Information:

 

DaVita Inc. provides kidney dialysis services through a network of 2,753 outpatient dialysis centers in the United States, serving 206,900 patients, and 259 outpatient dialysis centers in 10 other countries serving 28,700 patients. The company primarily treats end-stage renal disease (ESRD), which requires patients to undergo dialysis 3 times per week for the rest of their lives. The company has a 37% market share in the U.S. dialysis market. It is organized in Delaware and based in Denver.[2]

In 2019, 69% of the company’s revenues came from Medicare and other government-based health insurance programs. In 2019, 90% of the company’s patients were covered by government-based health insurance programs. Commercial payers, which accounted for 31% of revenues in 2019, generate all of the company’s profit as they reimburse at a much higher rate than government-based health insurance programs.[2]

The company is ranked 188th on the Fortune 500.[3]

The name “DaVita” is derived from the Italian language phrase “Dare Vita”, which means “giving life”

 

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