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.
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