Net Leased Heartland Dental Sold Date November 26, 2024
The Boulder Group has completed the sale of a new construction single tenant Heartland Dental property located at 25222 FM 1093 in Katy, TX for $3,203,000. The Boulder Group’s Jimmy Goodman and Zach Wright represented the seller in the transaction. The seller was a Northeast-based real estate development company and the purchaser was an all-cash California-based investor in a 1031 exchange. This is the 2nd brand-new construction Heartland Dental property that The Boulder Group has sold in the past few months.
The Heartland Dental property is in an extremely affluent area with average annual household income of approximately $190,000 within three miles. The property is positioned as an outparcel to a Lowe’s and is in a regional retail corridor that also includes H-E-B, Kroger, Academy Sports, and Walgreens.
The property features a new 10-year net lease. The lease includes 10% rental increases every five years and is corporately guaranteed. Heartland Dental is the largest dental support organization in the U.S. with over 1,700 locations across 38 states. The company is primarily owned by KKR, the largest global investment company in the world with approximately $500 billion under management.
“Well-located new construction single tenant properties remain highly sought after amongst 1031 buyers. This was an off-market transaction consummated through our national relationships with developers, buyers, and buyer’s brokers,” stated Zach Wright, Vice President.
“Single tenant medical properties, such as Heartland Dentals, have become increasingly popular due to their service-based use, expensive buildouts, and long-term historical occupancies,” added Jimmy Goodman, Partner.
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