FRESENIUS MEDICAL CARE OF TARBORO, NC...FRESENIUS MEDICAL CARE OF TARBORO, NC 122 HOSPITAL DRIVE,...

FRESENIUS MEDICAL CARE OF TARBORO, NC122 HOSPITAL DRIVE, TARBORO, NORTH CAROLINA 27886

NATHAN HUFFMAN | MANAGING PARTNEREmail: [email protected]: (972) 865-7991 Cell: (214) 300-5524 NET LEASE GROUP

PROPERTY OVERVIEW122 HOSPITAL DRIVE, TARBORO, NORTH CAROLINA 27886

NATHAN HUFFMAN MANAGING PARTNER

EMAIL: [email protected]: (972) 865-7991 | CELL: (214) 300-5524

FRESENIUS MEDICAL CARE OF TARBORO, NORTH CAROLINA

TABLE OF CONTENTS

04 INVESTMENT OVERVIEW

06 INVESTMENT HIGHLIGHTS

07 SITE PLAN

08 PRICING & FINANCIALS

09 RENT SCHEDULE

10 NET LEASE STRUCTURE

11 LOCATION OVERVIEW

14 CERTIFICATE OF NEED STATES

15 TENANT OVERVIEW

16 OUR TEAM

NATHAN HUFFMAN MANAGING PARTNER

Email: [email protected]: (972) 865-7991

Cell: (214) 300-5524

INVESTMENT OVERVIEWFMC OF TARBORO, NC

Fresenius Medical Care of Tarboro, NC | Page 4Nathan Huffman | Direct: (972) 865-7991 | Cell: (214) 300-5524

DIALYSIS CLINIC + HOME THERAPY UNIT

Nathan Huffman | Direct: (972) 865-7991 | Cell: (214) 300-5524

INVESTMENT OVERVIEWFMC OF TARBORO, NC

PROPERTY OVERVIEW

Rentable Area 8,013 Square Feet

Expiration Date 4/30/2032

Term Remaining 12.5 Years

Fresenius Medical Care of Tarboro, NC | Page 5

Address 122 Hospital Drive, Tarboro, NC

Tenant Fresenius Medical Care

Corporate Guarantee FMC Holdings, Inc.

Lot Area 2.3 Acres

Year Built 2017

Total Rentable Area 10,984 Square Feet

Purchase Price $4,590,838

CAP 6.20%

NOI $284,632

Rentable Area 2,970 Square Feet

Expiration Date 4/30/2029

Term Remaining 10.5 Years

DIALYSIS CLINIC

HOME THERAPY UNIT

INVESTMENT OVERVIEW. Peranich Huffman Net Lease Group is pleased to offer for sale, the single-tenant net leased Fresenius Medical Care of Tarboro, NC. Built to suit in 2017, the 10,984 square foot, freestanding facility consists of a 10 station dialysis clinic AND a home therapy unit, both of which operate six days a week.

LEASE TERM. Fresenius signed a 15-year lease for the dialysis clinic (12.5 years remaining) and a 12-year lease for the home unit (10.5 years remaining). Additionally, the lease provides for a 10% increase in base rent every five years, along with three 5-Year option periods at fair market value. The lease term, and all option periods, are backed by a Corporate Guarantee from Fresenius’ parent company Fresenius Medical Care Holdings, Inc.

ABOUT THE TENANT. The Lessee, Bio-Medical Applications of North Carolina is a wholly owned subsidiary of Fresenius Medical Care, the largest provider of renal care in both the United States and across the world. Fresenius delivers services to patients with chronic kidney failure and end stage renal disease. Fresenius has a net worth exceeding $22.50 billion and currently holds S&P’s Investment Grade credit rating of “BBB Stable”.

NET LEASE STRUCTURE. The lease is structured on a net basis, whereby Tenant is responsible for all expenses relating to property taxes, utilities, insurance premiums, and all interior portions of the premises. The Tenant also reimburses Landlord for costs associated with the repair and replacement of the HVAC, parking lot repairs, landscaping and other common area expenses. The Landlord is responsible for capital expenditures resulting from the replacement of the roof, structure and parking lot.


Corporately Guaranteed by FMC Holdings, Inc. Located in Certificate of Need State.

10% Rent Escalation Every 5 Years. (3) 5-Year Options for Lease Renewal.

Close Proximity to Vidant Edgecombe Hospital. Constructed in 2017 on a Build-to-Suit basis for FMC.

INVESTMENT HIGHLIGHTSFMC OF TARBORO, NC



SITE PLANFMC OF TARBORO, NC


PURCHASE PRICE NOI$4,590,838 $284,632%$ 6.20%

CAP RATE

PRICING & FINANCIALSFMC OF TARBORO, NC

Nathan Huffman | Direct: (972) 865-7991 | Cell: (214) 300-5524 Fresenius Medical Care of Tarboro, NC | Page 8


RENT SCHEDULE

Year Rent Per SF Monthly Base Rent

Annual Base Rent % Increase

1-5 $29.48 $19,684.67 $236,216.07 -

6-10 $32.43 $21,653.14 $259,837.67 10%

10-15 $35.67 $23,818.45 $285,821.44 10%

OPTION PERIOD RENT Tenant has three (3) Lease Renewal Option Terms of five (5) years each. Base Rent for each Option Term shall be equal to an amount that is the

lesser of (i) Fair Market Value of the Premises or (ii) an amount equal to one hundred ten percent (110%) of the Base Rent paid during the final 12

month period of the Initial Term or Base Rent of the preceding Option Term, as applicable. Notwithstanding the foregoing, in no event shall the

Base Rent for an Option Term be less than the Base Rent for the 12-month period preceding the first Option Term.

FMC OF TARBORO, NC


Year Rent Per SF Monthly Base Rent

Annual Base Rent % Increase

1-5 $16.30 $4,034.67 $48,416.00 -

6-10 $17.90 $4,438.13 $53,257.60 10%

10-12 $19.73 $4,881.95 $58,583.36 10%

DIALYSIS CLINIC HOME THERAPY UNIT


NET LEASE STRUCTURE

Expense CategoryTenant's

ResponsibilityLandlord's

Responsibility

Exterior Structure √

Roof √

HVAC √

Janitorial √

Parking Lot √

Landscaping √

Taxes √

Insurance √

Utilities √

LANDLORD'S RESPONSIBILITIES

FMC OF TARBORO, NC


The table above represents the financial responsibility of the expense categories.

NET LEASE GROUP

Landlord shall, without expense to Tenant, maintain and make all necessary repairs and/or replacements to the exterior and structural portions of the Property, Building and Premises, including, without limitation: foundations including the slab (but excluding any plumbing, electrical, or other systems or equipment located in or under the slab that was installed by Tenant), structure, load bearing walls, exterior walls, the roof and roof supports, columns, retaining walls, gutters, downspouts, flashings, and footings. Tenant shall reimburse Landlord for the costs and expenses of the maintenance and repair, including costs paid to any owners association which performed any of the work which are the responsibility of the Landlord, except for the replacement of the parking lot or any other capital expenditure.

Tenant shall pay or cause the payment of all charges for gas, water, sewer, electrical, telephone and other utility services supplied to the Premises during the Lease Term. Tenant shall pay before due all Tax Expenses assessed against the Property. Tenant shall reimburse Landlord for insurance premiums for the insurance coverages. Tenant shall be responsible for regular maintenance and repair of the HVAC servicing the Premises. Tenant shall, be responsible for each separate repair incident of the HVAC. Landlord shall be responsible, at its expense, for any replacements of the HVAC units that are required throughout the term of the Lease. The cost of any replacement shall be amortized over ten (10) years and the annual amortized amount shall be reimbursed to Landlord by Tenant as a Maintenance Expenses.

TENANT'S RESPONSIBILITIES


LOCATION OVERVIEWTARBORO, NC



Vidant Health is a not-for-profit, 1,447-bed hospital system that serves more than 1.4 million people in 29 Eastern North Carolina counties. The health system is made up of eight hospitals and more than 12,000 employees. Vidant also includes wellness centers, home health and hospice services, a dedicated children's hospital, rehab facilities, pain management and wound healing centers and specialized cancer care. Vidant Medical Group, a multispecialty physician provider group with more than 500 providers in 90+ locations. Their flagship hospital, Vidant Medical Center, is a level I trauma center and serves as the teaching hospital for the Brody School of Medicine at East Carolina University in Greenville.

Vidant Health is the largest private employer in Eastern North Carolina. All eight Vidant hospitals have achieved The Gold Seal of Approval for quality care by The Joint Commission, the leading accreditor of healthcare organizations in America.

In 2002, the organization implemented a program in which diabetes educators regularly visit rural clinics to improve glycemic control in African-American patients.

The system focuses on bringing quality health care to rural communities and pays special attention to the medically underserved. Vidant's Community Benefits Grants Program focuses on early detection, wellness and prevention, community health initiatives and direct health care services. Community health needs assessments are used to prioritize health needs in the service area. In 2017, Vidant Health provided $202 million in uncompensated care. Vidant Health changed their name from University Health Systems of Eastern Carolina in January 2012.

VIDANT HOSPITAL OF TARBORO



Tarboro is a town located in Edgecombe County, North Carolina, United States. It is part of the Rocky Mount Metropolitan Statistical Area. As of the 2010 census, the town had a population of 11,415. It is the county seat of Edgecombe County. Tarboro is located near the western edge of North Carolina's coastal plain. It has many historical churches, some dating from the early 19th century. Interstate 95 and U.S. 64 were constructed near Tarboro, allowing for access to and from the East Coast's major markets, many of which are within one day's drive.

CITY OVERVIEW

ECONOMYChinese tiremaker Triangle Tire Co. will be building two manufacturing facilities at a 1,449-acre site in Edgecombe County at Kingsboro Business Park, located between Rocky Mount and Tarboro. Phase 1 of the project is set to open in 2020 and phase 2 in 2022. At $580 million, it will be the largest ever manufacturing investment in rural North Carolina with the creation of 800 jobs and an estimated contribution of more than $2.4 billion to the state's economy. Corning has also constructed a new $86 million distribution center that will bring 111 new jobs, they will be operational in the first quarter 2020.

HEALTHCARE8.8% of the population of Tarboro, NC has health coverage, with 35.4% on employee plans, 24.1% on Medicaid, 15.6% on Medicare, 12.8% on non-group plans, and 0.954% on military or VA plans. Per capita personal health care spending in the place of Tarboro, NC was $7,264 in 2014. This is a 3.37% increase from the previous year ($7,027). Primary care physicians in Tarboro, NC see 1417 patients per year on average, which represents a 0.496% increase from the previous year (1410 patients). Compare this to dentists who see 1829 patients per year, and mental health providers who see 464 patients per year. Comparing across all counties in the state, Edgecombe County has the highest prevalence of diabetes (16.2%). Additionally, Hertford County has the highest prevalence of adult obesity (40.5%)

DEMOGRAPHICS 3-MILES 5-MILES 10-MILES

Population (2019 Est.) 12,511 16,125 26,988

Population Growth (2019-2024 Est.) 0.67% 0.33% 0.27%

Households (2019 Est.) 4,985 6,339 10,316

Household Growth (2019-2024 Est.) 1.77% 1.36% 1.22%

Average Household Income (2019 Est.) $52,987 $51,370 $51,033


Currently, there are only 12 “Certificate of Need” states that impose regulations which govern the treatment of End Stage Renal Disease. A CON law regulates the construction and operations of new dialysis facilities. The basic premise underlying this CON regulation is that excess capacity (in the form of facility overbuilding) directly results in health care price inflation.

Each of these states place limitations on the development of new facilities, which prevents competition with the subject property and creates a high barrier of entry for competition; therefore, benefiting healthcare real estate landlords.

• Alabama

• Alaska

• Hawaii

• Illinois

• Maine

• Mississippi

• New York

• North Carolina

• Vermont

• Washington

• West Virginia

• District of Columbia

NET LEASE GROUPCERTIFICATE OF NEED STATES


Fresenius Medical Care is the world’s leading provider of products and services for people with chronic kidney failure. It cares for more than 329,000 patients in our global network of more than 3,815 dialysis clinics.

Fresenius also operates 41 production sites on all continents, to provide dialysis products such as dialysis machines, dialyzers and related disposables.

Through our industry-leading network of dialysis facilities, outpatient cardiac and vascular labs, and urgent care centers, as well as the country’s largest practice of hospitals and post-acute providers, Fresenius Medical Care provides coordinated health care services at pivotal care points for hundreds of thousands of chronically ill customers throughout the continent. Their integrated approach helps to not only improve patients’ health outcomes, but also reduce the total cost of care.

As the world’s only vertically integrated renal dialysis company, Fresenius’ strategy is geared toward sustainable growth, whereas they aim to continuously improve the quality of life of patients with kidney disease by offering innovative products and treatment concepts of the highest quality. Developing innovative products and continuously improving the treatments is an inherent part of their growth strategy.

Fresenius Medical Care’s corporate headquarters are in Bad Homburg v.d.H., Germany. The headquarters of North America are in Waltham, Massachusetts and the headquarters of Asia-Pacific are located in Hong Kong.

200,000+ USPatients

114,000+ Employees

$18 Billion in Annual Revenues

$21 Billion inMarket Cap

50+ Countries Served

2,450+ US Clinics

TENANT OVERVIEW | Fresenius Medical Care



Jonathan Peranich | (832) 602-3383 | [email protected]

Jonathan Peranich is co-founder and managing partner of Peranich Huffman Net Lease Group. He is responsible for the leadership and day to day operations of the Company’s investment sales platform. In addition to managing the group’s marketing division, Jonathan oversees the trends analysis & capital markets underwriting of each transaction.

Inclusive of the evaluation of tax liabilities, debt structures, and arbitrage opportunities, Jonathan provides a distinct, consultative approach to PHNLG’s brokerage services based upon his client’s situational needs.

Nathan Huffman | (972) 865-7991 | [email protected] Nathan Huffman is co-founder and managing partner of Peranich Huffman Net Lease Group. Having served 10 years as a Director of Real Estate and Tenant Rep Broker for DaVita Healthcare Partner’s Inc., Nathan overseas PHNLG’s brokerage division. Responsible for the company’s new business development, Nathan manages the development, acquisition, and disposition of net leased medical assets for both private and institutional principals.

Steven Pelitere | (817) 869-0933 | [email protected] Mr. Pelitere is a Senior VP responsible for the acquisition & disposition of Pharmacies & Dental Offices. He leads the brokerage unit representing private clients & Diversified Statutory Trusts involved in these specific asset classes. His real estate experience lends to his ability to procure and develop leads by targeting specific product types that are in-line with PHNLG’s previous transactions.

NET LEASE GROUPOUR TEAM


Offers should be submitted electronically to:

NATHAN HUFFMAN at [email protected] and include the

following information:

Purchase Price

Sources of Debt & Equity

Closing Period

Earnest Money

Other Terms

Peranich Huffman Net Lease Group is a privately held real estate

brokerage firm specializing in single tenant net leased medical office

investment sales throughout the nation.

Our firm facilitates the purchase & sale of commercial real

estate tenanted by Dialysis Operators, Freestanding Emergency

Departments, and Surgery Centers.

ABOUT US

122 HOSPITAL DRIVE, TARBORO, NORTH CAROLINA 27886

CONFIDENTIAL MEMORANDUM & DISCLAIMER

Peranich Huffman Net Lease Group (“Agent”) has been engaged as the exclusive agent for the sale of the Fresenius of Tarboro, NC (the “Property”), by the owner of the Property (“Seller”). The Property is being offered for sale in an “as-is, where-is” condition and Seller and Agent make no representations or warranties as to the accuracy of the information contained in this Offering Memorandum.

The enclosed materials include highly confidential information and are being furnished solely for the purpose of review by prospective purchasers of the interest described herein. Neither the enclosed materials nor any information contained herein is to be used for any other purpose or made available to any other person without the express written consent of the Seller. Each recipient, as a prerequisite to receiving the enclosed, should be registered with Peranich Huffman Net Lease Group as a “Registered Potential Investor” or as “Buyer’s Agent” for an identified “Registered Potential Investor.” The use of this Offering Memorandum and the information provided herein is subject to the terms, provisions and limitations of the confidentiality agreement furnished by Agent prior to delivery of this Offering Memorandum. The enclosed materials are being provided solely to facilitate the prospective investor’s own due diligence for which it shall be fully and solely responsible. The material contained herein is based on information and sources deemed to be reliable, but no representation or warranty, express or implied, is being made by Agent or Seller or any of their respective representatives, affiliates, officers, employees, shareholders, partners and directors, as to the accuracy or completeness of the information contained herein. Summaries contained herein of any legal or other documents are not intended to be comprehensive statements of the terms of such documents, but rather only outlines of some of the principal provisions contained therein. Neither the Agent or the Seller shall have any liability whatsoever for the accuracy or completeness of the information contained herein or any other written or oral communication or information transmitted or made available or any action taken or decision made by the recipient with respect to the Property. Interested parties are to make their own investigations, projections and conclusions without reliance upon the material contained herein.

Seller reserves the right, at its sole and absolute discretion, to withdraw the Property from being marketed for sale at any time and for any reason. Seller and Agent each expressly reserves the right, at their sole and absolute discretion, to reject any and all expressions of interest or offers regarding the Property and/or to terminate discussions with any entity at any time, with or without notice. This offering is made subject to omissions, correction of errors, change of price or other terms, prior sale or withdrawal from the market without notice. Agent is not authorized to make any representations or agreements on behalf of Seller.

Seller shall have no legal commitment or obligation to any interested party reviewing the enclosed materials, performing additional investigation and/or making an offer to purchase the Property unless and until a binding written agreement for the purchase of the Property has been fully executed, delivered, and approved by Seller and any conditions to Seller’s obligations thereunder have been satisfied or waived.

By taking possession of and reviewing the information contained herein, the recipient agrees that (a) the enclosed materials and their contents are of a highly confidential nature and will be held and treated in the strictest confidence and shall be returned to Agent or Seller promptly upon request; and (b) the recipient shall not contact employees or tenants of the Property directly or indirectly regarding any aspect of the enclosed materials or the Property without the prior written approval of the Seller or Agent; and (c) no portion of the enclosed materials may be copied or otherwise reproduced without the prior written authorization of Seller or Agent or as otherwise provided in the Confidentiality and/or Registration Agreement executed and delivered by the recipient(s) to Peranich Huffman Net Lease Group.

NET LEASE GROUP

FRESENIUS MEDICAL CARE OF TARBORO, NC122 HOSPITAL DRIVE, TARBORO, NORTH CAROLINA 27886

Date post:	17-Sep-2020
Category:	Documents
Upload:	others
View:	0 times
Download:	0 times

FRESENIUS MEDICAL CARE OF TARBORO, NC...FRESENIUS MEDICAL CARE OF TARBORO, NC 122 HOSPITAL DRIVE,...

Documents