7310 N Villa Lake Dr - Medical FOR SALE


Peoria, IL 61614- North Peoria
$1,712,100 USD
513-300-0763
7310 N Villa Lake Dr, Peoria, IL for Sale
$1,712,100 USD
Medical - FOR SALE
1/6
null | 9.25% Cap Rate

7310 N Villa Lake Dr
Peoria, IL 61614
North Peoria


HIGHLIGHTS

  • Annual Rent Escalations The stabilized tenant (Willow Knolls Family Dental) features 2.50% annual rent escalations throughout the remaining 7 years
  • all renewal option periods, providing for predictable income growth and inflation protection. Minimal Landlord Responsibilities.
  • Heartland Dental is responsible for operating expenses including the HVAC, parking lot, landscaping, insurance, taxes, and utilities
  • Heartland Dental is the industry leader supporting 2,800+ dentists and 20,000+ team members nationwide.
  • The subject property is located in a densely populated area with 75,000+ residents within a 3-mile radius and 135,292 within 5 miles.
  • The 1,300 SF unoccupied Suite A (18.9% of total building area) presents immediate upside potential for additional income.

OVERVIEW

Bang Realty is pleased to present for sale, the Heartland Dental medical office building located in Peoria, IL. Priced at a 9.25% capitalization rate, the offering provides investors with an opportunity to acquire a medical asset occupied by a national healthcare tenant with an established track record of operational performance and practice management expertise. Located at 7310 Villa Lake Drive in Peoria, IL, the 81% occupied, 6,890 square-foot facility features three suites. Two of the three suites are occupied by Heartland Dental with 5.3 years of weighted average lease term remaining, while the unoccupied suite presents a value-add opportunity for additional income. The property benefits from its positioning within Peoria's established medical corridor, serving a growing patient base in Central Illinois. Heartland Dental's dominant market position as the largest dental support organization (DSO) in the United States, coupled with the backing of global investment firm KKR, creates an environment of operational security and cash flow stability by virtue of exceptional tenant creditworthiness. Leases: Willow Knolls Family Dental (Heartland Dental) has 7.0 years of primary lease term remaining, resulting from the execution of a 10-year lease that commenced in August of 2022. The 3,780 square-foot Suite B generates $120,127 in annual base rent ($31.78/PSF), increasing by 2.50% in each year of the remaining term and (4) 5-year renewal options. The lease is structured on a net basis, whereby the tenant bears financial responsibility for all property related expenses other than the building's structural components and roof replacement. Flynn Orthodontics (Heartland Dental) initially executed a 10-year lease on the 1,800 square-foot Suite C. Following the completion of the 10-year term in 2024, the tenant has since exercised (2) 1-year renewal options. The tenant has 0.6 years of lease term remaining at an annual rate of $44,027 ($24.46/SF). Upon commencement of the remaining 1-year option period, annual base rent increases by 2.00% to $44,908. The lease is structured on a net basis, whereby the tenant bears financial responsibility for all property related expenses other than the building's structural components, roof replacement and roof maintenance. Tenant: Serving as the corporate guarantor for both leases, Heartland Dental is the largest DSO in the United States, supporting more than 1,800 dental offices located in 38 states. Founded in 1997 and based in Effingham, Illinois, Heartland Dental currently supports over 2,800 dentists and over 20,000 team members nationwide. The company offers dentists and team members continuing professional education and leadership training, along with comprehensive non-clinical administrative services including staffing, human relations, procurement, administration, financial, and marketing. Heartland Dental is majority-owned by KKR, a global investment company with over $496 billion under management and the largest investment firm globally. KKR invested into Heartland Dental in 2018 and has helped the company scale operations by more than doubling its number of practices.

FOR SALE DETAILS

PRICE

$1,712,100 USD

PRICE/SF

$244 USD /SF

CAP RATE

9.25%

% LEASED

-

TENANCY

Multiple

SALE TYPE

Investment

BUILDING DETAILS

PROPERTY TYPE

Office

PROPERTY SUBTYPE

Medical

TOTAL BUILDING SIZE

-

STORIES

1

BUILDING CLASS

B

YEAR BUILT

2007

SPRINKLERS

-

PARKING SPACES

-

LAND DETAILS

LAND ACRES

0.98 AC

LAND SF

42,689 SF

ZONING

-

APN/PARCEL ID

14-07-151-007

ASK ABOUT THIS PROPERTY

Brian BrockmanBang RealtyMore Info
513-300-0763

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Brian BrockmanBang RealtyMore Info
513-300-0763

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