717-514-6390
137 Palo Alto Rd, San Antonio, TX for Sale
Health Care - FOR SALE
1/27
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137 Palo Alto Rd
San Antonio, TX 78211
South San Antonio


HIGHLIGHTS

  • 15-year absolute net lease with zero landlord responsibilities featuring | 2% annual rent increases through 2032 and 3% annual increases thereafter
  • Corporate guarantee from U.S. Renal Care, Inc., a top-tier national dialysis provider with over 400 locations
  • In 2025, the tenant invested nearly $1 million in a comprehensive renovation—fully funded by the tenant
  • Located in San Antonio, Texas, one of the fastest-growing metropolitan areas in the United States, supported by strong population growth

OVERVIEW

Jennifer Stein Real Estate Inc., in conjunction with Zeustra Healthcare Real Estate Advisors – Out-of-State Cooperating Broker, is pleased to present the exclusive opportunity to acquire 137 Palo Alto Road in San Antonio, Texas—a fully renovated, single-tenant medical facility totaling 7,448 square feet, leased to U.S. Renal Care, Inc., one of the nation’s largest and most established dialysis providers with more than 400 locations nationwide. The property is backed by a corporate guarantee and benefits from a 15-year absolute net lease, providing investors with long-term, predictable cash flow and zero landlord responsibilities. The lease extends through April 30, 2040, featuring 2% annual rent increases through March 1, 2032, followed by 3% annual increases thereafter, ensuring consistent income growth and a built-in hedge against inflation. U.S. Renal Care has operated successfully at this location since 2012, serving as a mission-critical facility for the local patient base. In 2025, the tenant completed an extensive nearly $1 million renovation—fully funded by the tenant—encompassing structural, site, and interior modernization, including foundation stabilization, drainage and plumbing upgrades, regrading and resurfacing of parking areas, new flooring and finishes, and full repainting inside and out. This significant tenant investment highlights a deep, long-term commitment to the location and reinforces the facility’s operational strength and longevity. Strategically positioned in San Antonio, one of the fastest-growing metropolitan areas in the United States, the property benefits from strong demographic and economic momentum, robust population growth, and expanding healthcare infrastructure. San Antonio’s diverse economic base and sustained in-migration continue to drive healthcare demand, positioning this facility within a dynamic and resilient market. From an investment standpoint, this property combines the security of a long-term, corporate-backed lease with the benefit of consistent rent growth and capital appreciation potential. Compared to static-income assets that may offer higher near-term yields but limited long-term upside, the structured rent escalations embedded in this lease compound value over time—enhancing both income and exit potential. This balance of durable cash flow and intrinsic growth offers investors a compelling opportunity to achieve long-term value creation, inflation protection, and portfolio stability. In summary, 137 Palo Alto Road represents a best-in-class, mission-critical healthcare investment, pairing a proven operator’s decade-long success and renewed commitment with an institutionally maintained facility in one of Texas’s most vibrant growth markets.

FOR SALE DETAILS

PRICE

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CAP RATE

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% LEASED

-

TENANCY

-

SALE TYPE

Investment

BUILDING DETAILS

PROPERTY TYPE

Health Care

TOTAL BUILDING SIZE

-

STORIES

1

BUILDING CLASS

C

YEAR BUILT

2005

SPRINKLERS

-

PARKING SPACES

30

LAND DETAILS

LAND ACRES

0.94 AC

LAND SF

40,946 SF

ZONING

-

APN/PARCEL ID

11187-001-0110

ASK ABOUT THIS PROPERTY

Nick MyersZeustra Real Estate Investment ServicesMore Info
717-514-6390

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Nick MyersZeustra Real Estate Investment ServicesMore Info
717-514-6390

By clicking the button, you agree to Showcase's Terms of Use and Privacy Notice.