The 14,400 sf property was acquired as a lender REO from US Bank. The lease with Fresenius SE & Co. KGAA (ETR:FRE) dba Fresenius Medical Care (FMC) had 6+ years remaining on the primary term. The property, previously a Western Auto store, is situated on a main thoroughfare in Seguin Texas, adjacent to Texas Lutheran University, and numerous commercial businesses. The property was listed for sale at $1,400,000.00. BR Seguin LLC negotiated a sales price to provide an attractive return to its investors/partners based on the 2012 net operating income (NOI) and closed on the acquisition in September 2012. FMC expanded the facility by an additional eight (8) dialysis stations in 2014. FMC has invested over $500,000.00 in capital improvements to the facility since 2009 and two lease renewals have occurred since the original acquisition.
Bedrock Investments Group (BIG) acquired 1.63 acres of fee simple ownership of land beneath this DaVita Dialysis Center. The tenant built a 5,768 sf freestanding building on the site. The ground lease was renewed in 2020 and fronts on Interstate 71. DaVita Healthcare Partners, Inc. (NYSE: DVA) operates over 2,100 dialysis centers nationwide. It was one of the larger stock holdings of Berkshire Hathaway. La Grange is the county seat of Oldham County and located within a short drive to Louisville, KY. The facility was developed as a build-to-suit for DaVita in 2005. It is strategically located near downtown La Grange and Baptist Health Center, an 120 bed acute care facility that is part of Baptist Health Systems, Kentucky’s major healthcare facility network. The facility currently houses fourteen (14) dialysis stations with internal capacity for expansion and adding additional treatment shifts. The property was acquired from the original Florida based developer, who wished to use the capital for other projects closer to his home base of operations. A new 100 room Holiday Inn Express is scheduled for completion in 2017 on the adjacent property which fronts I-71. A Holiday Inn Express was completed on the adjacent lot in 2017.
A 7,358 square foot freestanding dialysis facility is leased to Fresenius SE & Co. KGAA (ETR:FRE) dba Fresenius Medical Care (FMC). The site is ideally positioned on the hard corner of Howell Boulevard and 72nd Avenue, just 0.3 miles from interstate 110 (56,890 VPD). Baton Rouge is the state’s capital and the second largest city in Louisiana. The location was selected for its strategic position within a premier retail, commercial and residential corridor and proximity to Champion Medical Center, a new 25,000 sf specialized surgical hospital that opened in January 2014. Within 3 miles of the property, there exists approximately 1.7 msf of retail, 1.3 msf of industrial and 2,000 multifamily units and strong demographics (3-mile population of 63,130). Other major tenants with a presence in the immediate vicinity include: Chevron, Hilton Garden Inn, Microtel Inn and Suites, Subway, Burger King, IHOP, Sonic, Racetrac, Exxon, Advance Auto Parts, Days Inn, McDonald’s and Jack In The Box among others. The property is also less than 2.5 miles east of Southern University A&M College. Seller of the property was a REIT which needed to reduce its debt level. Bedrock Investments Group (BIG) used proceeds from the sale of the Glendale, AZ Taco Bell to complete a 1031 exchange for the acquisition. Investors received increased cash flow, additional lease term, and superior tenant credit.
Bedrock Investments Group (BIG) acquired this 6,730 sf freestanding dialysis facility on over 1.0 acre of land leased to Fresenius SE & Co. KGAA (ETR:FRE) dba Fresenius Medical Care (FMC) in 2015. Centerville, TN is the county seat for Hickman County, approximately 50 miles from Nashville, TN. The “build-to-suit” 16 chair facility was opened in 2007 with existing capacity for service expansion. A strategic location for FMC, the site currently operates two treatment shifts three (3) days per week at maximum capacity. The Life Care Center of Centerville, a skilled nursing facility with 132 beds is adjacent to the site. The Hickman Community Nursing Home, less than ½ mile from the site, has 40 beds. FMC Centerville is approximately 1/4 mile from St. Thomas Hickman Hospital, the only acute care hospital in Hickman County. At time of acquisition, the lease had four (4) years and ten (10) months of term remaining with three (3) options. Purchase price ($230.54/sf) is below estimated replacement cost for this building with approximately $1,000,000 in interior improvements. The closest dialysis facilities are FMC Dickson, (twenty-nine (29) miles) and FMC Columbia (thirty (30) miles). The most recent CAPEX improvements included a new 40 year roof in 2013 and replacement of an HVAC unit in 2013. The owners were “out-of-state” octogenarians selling for health and estate planning requirements. Lease was extended in 2020.
The FMC Warner Robins is a 6,600 SF freestanding medical building built in 1997 on an 88,862 SF lot (7.43% coverage). It is a beautiful, well-located facility with excess land for expansion within the Warner Robins Metropolitan Statistical Area. Fresenius Medical Care has occupied this build-to-suit facility for 17 years and has the FMC regional office and training center in the adjacent office building. The facility is operating near capacity with over 340 procedures per week. The Acquisition Cost ($238.63/SF) is significantly below replacement cost for this building with improvements estimated to be $350.00/SF. The contract rent of $1.65/SF NNN is 18% below market rent of $2.00/SF NNN.
The building is located in a business park to the rear of Target anchored power center and within 1⁄4 mile of the regional center named Houston County Galleria. The property was originally acquired in 1997 for $1,100,000. The most recent CAPEX improvements included a new 40-year roof and HVAC in 2013. The octogenarian owner sold due to poor health and estate planning. The lease for this facility was recently extended.
The 12,211 sf Fresenius Medical Care (FMC) Saginaw Riverside facility was an opportunistic acquisition where Bedrock Investments Group’s (BIG) expertise added significant value to the property. Listed at $900,000.00, the property fell out of escrow repeatedly due to the inability of the prospective buyers to extend the lease term or finance the property. BIG purchased the property for $625,000.00. Two units (approximately 73%) of the condominium building were leased to Fresenius SE & Co. KGAA (ETR:FRE) dba Fresenius Medical Care (FMC). FMC Riverside is strategically located near two medical centers, major surface streets, and interstates 75 and 675. The facility has 32 stations, running two shifts per day Monday through Saturday equating to 300+ procedures per week. The acquisition cost ($50.00/sf) was significantly below replacement cost for building and property. The investment strategy was to process a subdivision map to secure fee ownership of the FMC portion of the building, remodel the facility and site with retained capital and renew tenant for an extended term. In 2014, the partners purchased 1.0 acre of adjacent river front land and annexed the adjacent street for a total of $9,000 plus costs. The building was painted, new ADA ramp and awning installed, new landscaping installed, roof repaired/covered with a new surface, new building signage, and the parking lot repaired with slurry, seal and stripe. FMC has renewed for an additional five (5) years with a 10% increase in rent.
The 7,032 sf facility is leased to Eye Surgery Center of Tulsa, a joint venture partnership of the Tulsa OK Ophthalmology ASC/LLC and AMSURG (51%), a nationally recognized leader in the development, management and operation of outpatient surgery centers. The property is located just ½ mile from the St. Francis Hospital medical campus in a major medical corridor. Approximately 120 surgical procedures per week are performed at this center. Over six (6) years remained on the lease at time of acquisition. Other nearby tenants include: Health Zone, Snap Fitness, Eastern Oklahoma Ear Nose & Throat, Tulsa Family Dental, Endodontic Specialists and Oklahoma Podiatric Med Association, among several others. The property was an “outlier” in the portfolio of a Washington state real estate investor. Bedrock Investments Group (BIG) acquired a tenants in common (tic) interest in this property in conjunction with one of their major investor partners to facilitate their 1031 exchange. AMSURG partners with more than 1,500 physicians at more than 220 outpatient surgery centers across the United States. AMSURG revenues for the first six months of 2012 were $461.8 million. The tenant completed renovation of the interior in 2016 and extended the original lease.
The 10,440 sf property was built in 2001 and listed for sale at $2,595,650. Fresenius Medical Care (FMC) has invested over $1,000,000 in capital improvements to the facility in remodeling and parking lot repairs, sealing and striping. It treats over 200 patient visits per week. Bedrock Investments Group (BIG) acquired a tenants in common (TIC) interest in the center to facilitate this 1031 exchange.
Fresenius SE& Co. KGAA (ETR: FRE) dba Fresenius Medical Care (FMC) is the world’s largest, integrated provider of products and services for individuals with chronic kidney failure, a condition that affects more than 2.2 million individuals worldwide. Through its network of 3,160 dialysis clinics in North America, Europe, Latin America, Asia-Pacific and Africa, FMC provides dialysis treatment to 257,916 patients around the globe. FMC is also the world’s largest provider of dialysis products, such as hemodialysis machines, dialyzers and related dialysis center disposable products. this FMC center is surrounded by numerous healthcare facilities, a medical center, and several hospitals. The original lease was extended for an additional seven (7) year period.
This Bedrock Investments Group’s (BIG) acquisition served as the “up-leg” of a 1031 exchange for the proceeds from Goodyear Orange Park (Jacksonville, FL) disposition. BIG acquired a fee simple ownership of a seasoned 5,961 sf DaVita Dialysis Center, which opened in 2008. DaVita Healthcare Partners, Inc. (NYSE: DVA), the dominant dialysis provider in Iowa, recently exercised an early lease renewal. This facility has twenty-four (24) dialysis stations with capacity for additional patients. The QIP score for 2012-2015 for this facility is 98; the national average is 81. Purchase price per sf is below replacement cost for a dialysis center. It is located in Marshalltown’s retail core, adjacent to the VA clinic, positioned on a national tenant retail corridor including Wal-Mart Superstore, JC Penney, Menards, Aldi, Dollar General, and Advance Auto Parts. The seller is a local developer/owner who wanted to capitalize a pending industrial project with proceeds from the sale.
Bedrock Investments Group (BIG) had the opportunity to acquire this freestanding, 7,400 sf medical buildings built in 1985/2015 on .975 acres (42,471 sq ft, 5.74% coverage). The Nova Medical Center is a beautiful well-located facility leased to Nova Medical Centers in Arlington, Texas. Nova Medical Centers has operated at this location since 2014 and, prior to moving in, the building was remodeled with more than $500,000 spent on the tenant’s interior finish-out. Nova Medical Centers recently executed a new 10-year lease The former owner replaced the roof in 2015. Nova Medical Centers began as a single facility formed 20 years ago in Conroe, Texas, to provide the highest level of healthcare to patients suffering from musculoskeletal injuries. Currently, Nova treats more than 40,000 injuries each year and has more than 600,000 patient visits in 12 months. Nova operates more than 47 occupational medicine facilities across Texas, Georgia, Tennessee, and Indiana. Nova Medical Centers is positioned where Interstate 20 and Little Road merge, with combined traffic counts in excess of 210,000 vehicles per day. The property has excellent visibility and great ingress and egress from Interstate 20. The area is extremely dense with more than 209,000 residents within a five-mile radius and an average household income of approximately $76,076. Surrounding retailers include Walmart Supercenter, Walgreens, McDonald’s, Sprouts, AutoZone, Starbucks, and Albertsons.
Fremont Health Center for Wound Healing provides specialized treatment for chronic or non-healing wounds and sores that have not significantly healed during the course of conventional treatment. These wounds can cause severe health risks and may result in life-threatening infections, possible amputation and debilitating health problems. State-of-the-art treatment is provided at the wound center, giving people with slow-healing wounds new treatment options. The comprehensive approach can heal wounds that have resisted other treatments, and help avoid loss of limbs, and reduce the incidence of recurrence. The Wound Center is on the campus of Fremont Medical Center.
The opportunistic acquisition was a result of a long-term relationship with the commercial real estate broker who represented the site and contacted Bedrock before marketing to the public. The primary lease term expires in 2027 and provides our partners an initial 7.25% unleveraged return on investment (ROI) that will increase at a rate of 3.0% per year. The seller was preparing for retirement and is liquidating his real estate portfolio.
The Fremont Health Center System was purchased by the Nebraska Methodist Hospital Group after Bedrock’s acquisition of the facility.
The Calexico Fresenius (FMC) Clinic is a 2013 build-to-suit kidney dialysis clinic that is 100% leased to Fresenius Medical Care North America (FMC) on a 15-year lease term, with lease term extending to the end of 2028. The lease includes 1.7% annual increases and is guaranteed by Fresenius Medical Care Holdings, Inc (FMCH). This facility consists of 11,553 square feet and is situated on 1.54 Acres. The property was an up leg to a 1031 exchange by Bedrock’s primary capital partner.
FMC is a wholly owned subsidiary of Fresenius Medical Care AG & Co. KGaA, which is the world’s largest integrated provider of products and services for individuals undergoing dialysis because of chronic kidney failure, a condition that affects more than 1,890,000 individuals worldwide. The parent company is listed on both the Frankfurt Stock Exchange and the New York Stock Exchange (NYSE: FMS).
The Calexico FMC Clinic has a central location within the Imperial Valley, just 2.1 miles from Calexico International Airport, and features easy access to Interstate 8. The building is located on Birch Street / CA Highway 98, a primary east/west arterial, and just east of Imperial Avenue / CA Highway 111, a primary north/south corridor. The property is located in immediate proximity to the Calexico Outpatient Clinic, a branch of the El Centro Medical Center, as well as Calexico Health Center, a full service health center office, open 24 hours per day, seven days per week.
The ATI Physical Therapy property was an up leg to a 1031 exchange by a Bedrock investor partner. There was a need to cover existing debt (“boot”) and Bedrock 1st Mortgage provided funding for a five (5) year, $700,000.00 first mortgage at 50% loan to value (“LTV”). The property is a newly constructed net leased investment for ATI Physical Therapy, a major provider of outpatient physical therapy services. Bloomington is the 7th largest city in Indiana with a population of more than 85,000 people. It is also home to Indiana University, which enrolls more than 49,000 students and is the largest university in the state. This popular Big 10 town was recently ranked as “Top 10 Best Places to Live in the United States” by Money Magazine.
ATI is operating under a 10-year NNN lease to which Tenant reimburses landlord for all CAM and capital costs. There are 10% rent increases every 5 years, which helps hedge against future inflation and increases the property’s value over time. The property consists of a 3,000 sf building on 0.90 acres and was constructed in 2017. the facility is the tenant’s latest prototype and is of the highest quality construction.
This Bedrock Investments Group’s (BIG) acquisition served as the “up-leg” of a 1031 exchange for the proceeds from Goodyear Tire and Rubber location in Cape Coral Florida. The 3,500 square foot freestanding facility was built in 2016 and is leased to Aspen Dental under the terms of a 10-year agreement. The site is strategically located directly across the street from the Marshalltown Mall and Walmart Supercenter on Highway 14 (S Center St), which is the main retail corridor through Marshalltown. Nearby tenants include: Burger King, Subway, Aldi, Advance Auto Parts, Wells Fargo, UPS, Hobby Lobby, JC Penney, Arby’s, Papa Murphy’s, Goodwill, Kay Jewelers, Domino’s, AT&T and Walmart Supercenter. The site has excellent demographics with a population of over 29,165 residents with an average household income of $65,963 within a 5-mile radius of the facility.
This 4,231 square foot freestanding urgent care facility is leased to Hendrick Health System, the largest employer in Abilene. The site is ideally positioned on the signalized hard corner of 13th Street and Pine.
The Hendrick Urgent Care acquisition is an up leg to a 1031 exchange for a Bedrock LLC. and a Tenants in Common partner. Construction was completed in May 2020 under the terms of a 15-year NNN lease.
Hendrick Health System is affiliated with the Baptist General Convention of Texas. For more than 95 years, the Hendrick Health System name has been the healthcare leader in the Texas midwest. The adjacent Hendrick Medical Center is licensed for 540 beds, with a women’s center, rehabilitation hospital, cancer center, hospice center, NICU and numerous other innovative services.
The urgent care facility is also located adjacent to the Texas Tech University Hospital. The campus has a school of pharmacy and a school of nursing, in addition, Hendrick has bought a number of properties to build a block of state-of-the-art apartment housing for students attending the Abilene campus of Texas Tech Health.