This sale offers the opportunity to purchase a medical office leased to DaVita, Inc in Birmingham, Alabama. DaVita recently signed an 8-year extension, taking the lease through 7/31/2032, and has been at the building since 1999.
The subject property, located at 1929 32nd Ave N, was constructed in 1999 and was immediately occupied by DaVita. The building is of masonry construction and has 8,132 square feet of rentable building area. The property features 20 surface stalls of parking and is situated in a convenient location that is one block from the offramp of interstate 65 (121,000 vehicles per day). The site is situated in a medical hub that is anchored by well-known medical institutions, such as the University of Alabama at Birmingham Health System which has over 1,000 beds and is located approximately 10 minutes from DaVita. The State of Alabama offers a desirable political and business environment. Per the Federal Reserve, Alabama has experienced a growth in GDP of over 58% in the past 10 years.
DaVita occupies the property under NNN lease terms and is responsible for property tax, insurance and property maintenance excluding roof and structure. The lease features 2% annual increases throughout the lease term. The lease currently has approximately 7 years of firm term and two 5-year optional extensions. DaVita, Inc, which holds a Ba3 credit rating from Moody’s and a BB rating from S&P, guarantees the lease.
DaVita Birmingham offers a dependable, low-management real estate asset in a desirable location. The property is suitable for passive investors offering both reasonable cash flow and attractive long-term value.