Sale of Animal Hospital in Merced California Date July 22, 2026
The Boulder Group, a net leased investment brokerage firm, completed the sale of a single tenant net leased Valley Animal Hospital located at 58 W 16th Street in Merced, California for $1,945,000.
The 4,998-square-foot property is situated at 58 W 16th Street in Merced, California, within Merced County in California’s San Joaquin Valley. West 16th Street carries approximately 28,000 vehicles per day. The site benefits from proximity to G Street, which carries approximately 33,000 vehicles per day, and State Route 99, which carries approximately 51,000 vehicles per day. National retailers in the immediate trade area include Costco, Smart & Final, In-N-Out Burger, Starbucks, Taco Bell, Wendy’s, Popeyes, Cold Stone Creamery, Subway, and O’Reilly Auto Parts. Nearby community institutions include Yosemite-Independence High School, Herbert Hoover Intermediate, Charles Wright Elementary School, Tenaya Middle School, Merced County Office of Education, and the Merced County Fairgrounds. More than 111,983 residents live within five miles, with an average household income of $82,332 within that radius. The population within three miles totals approximately 89,972. Valley Animal Hospital is one of only two full-service veterinary clinics in Merced, California, giving it a dominant position in the city’s central and most densely populated corridor. The University of California, Merced—the first new UC campus of the 21st century—anchors the local economy and contributes over $1 billion annually to the region.
Randy Blankstein, Jimmy Goodman and John Feeney of The Boulder Group represented both parties in the transaction. The seller was a West Coast based individual. The buyer was a Midwest based investment group. The retail net lease sector averaged a cap rate of 6.60% in the second quarter of 2026, according to The Boulder Group’s Net Lease Research Report.
Valley Animal Hospital operates under a double net (NN) lease in which the landlord retains responsibility for the roof, structure, foundation, parking lot, and HVAC replacement. The lease expires on November 1, 2030, with approximately five years of remaining term. The tenant holds two additional five-year renewal options. Rent increases annually by the greater of 2% or the Consumer Price Index, with escalations capped at 4%. The lease is backed by a corporate guaranty from VetCor Group Holdings Corp.
VetCor Group Holdings Corp. was founded in 1997 and is headquartered in Norwell, Massachusetts. The company operates one of the largest networks of independently operated animal hospitals in North America, with more than 900 locations across the United States and Canada and a workforce of more than 15,000 team members, including thousands of veterinarians and support staff. VetCor partners with independent veterinary practices by providing operational, marketing, human resources, and administrative support, enabling each location to retain its local identity and client relationships. Valley Animal Hospital has served Merced, California and the surrounding communities of Atwater, Livingston, Los Banos, and Chowchilla since 1985. The clinic provides care for dogs, cats, birds, pocket pets, reptiles, and exotic animals, with services spanning routine wellness visits, diagnostic workups, surgical procedures, and emergency treatment.
“Valley Animal Hospital has served the Merced community for over 40 years and stands as one of only two full-service veterinary clinics in the city—that combination of an established patient base and limited local competition made this a highly compelling asset for investors,” said Randy Blankstein, President of The Boulder Group. Jimmy Goodman, Partner of The Boulder Group, added, “This was a strong fit for a 1031 exchange buyer seeking reliable, passive income from a service-based tenant that is resistant to e-commerce disruption and performs well through economic cycles.” John Feeney, Senior Vice President of The Boulder Group, noted, “We continue to see strong investor demand for veterinary net lease assets, and this transaction reflects the growing appeal of essential-service properties in well-established secondary markets across California.”
About The Boulder Group
The Boulder Group is a boutique investment real estate service firm specializing in single tenant net lease properties. The firm provides a full range of brokerage, advisory, and financing services nationwide to a substantial and diversified client base, which includes high net worth individuals, developers, REITs, partnerships and institutional investment funds. Founded in 1997, the firm has arranged the acquisition and disposition of over $11 billion of single tenant net lease real estate transactions. From 2013–2025, the firm was ranked in the top 10 companies in the nation for single tenant retail transactions by both CoStar and MSCI Real Capital Analytics. The Boulder Group is headquartered in suburban Chicago and has an office in Denver.
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