Northmarq is pleased to offer for sale to qualified investors the opportunity to acquire the fee simple interest in the land and building of a single-tenant dialysis clinic facility located at 805 Old Mill Street, Tuscaloosa, AL.
The Property consists of 0.61 acres and a 7,416-square-foot, one-story medical office building that was built in 1971 and renovated in 2007 to the exact specifications of the tenant, DVA Healthcare Renal Care, Inc., a subsidiary of DaVita, Inc. The Tenant recently extended the lease term early for an additional 8 years, indicating their commitment to the location. The Property is ideally situated in Tuscaloosa, near the intersection of I-359 and I-20 making the clinic extremely accessible for patients in all directions. The site is also located about two miles from the University of Alabama and the city's medical corridor with multiple hospitals, enhancing its strategic importance in the local healthcare ecosystem.
DaVita, Inc. is a leading provider of kidney care in the U.S., operating over 2,675 dialysis centers nationwide. The tenant has 7.5 years of term remaining on the current lease with two additional five-year renewal options. The lease structure is double net (NN) with Landlord responsibilities limited to roof, structure, and HVAC. The current annual rent is $133,937.60, with annual increases of 1.75%, providing stable and increasing income for investors. There are three additional five-year renewal options, extending the potential term of the lease to 27 years.
As a leading healthcare operator, DaVita, Inc. is backed by strong financial performance, generating $12.14 billion in revenue and $691 million in net income as of 2023. The tenant holds a BB credit rating from Standard & Poor’s and a Ba3 rating from Moody’s, offering a reliable and stable income stream backed by one of the largest kidney care companies in the world.
In Association With: Ryan Butler - AL Lic. #101183