Project Description
Highlights
• Three Property Fresenius Medical Care (S&P BBB-) Portfolio | 23,738 Rentable Square Feet Currently 100 Percent Occupied
• 15,506-Square Feet Leased to Fresenius Medical Care | 5,636 Master Lease
• Brand New 15-Year Leases at Each Location | Rent Commenced May 1, 2016
• 10 Percent Rent Escalations Every Five Years with Three, Five-Year Options to Renew
• Quad City Kidney Center, Ltd. in Top 10 Percent Profit Margin for Dialysis Clinics Nationally | Recently Acquired by Fresenius Medical Care
• Average Five-Mile Population Exceeds 125,000 | Average Household Income within One-Mile is Approximately $73,000
• Portfolio Holds Corporate Guaranty from Fresenius Medical Care Holdings, Inc.
Summary
The Quad Cities Kidney Center portfolio consists of three single-tenant, net-lease Fresenius Medical Care (Standard & Poor’s BBB-) Dialysis Clinics and one on-campus medical office building inclusive of a dialysis clinic and ambulatory surgery center (ASC). The assets are located in Rock Island, Illinois; Davenport, Iowa; and Muscatine, Iowa.
Fresenius Medical Care (FMC) recently acquired the operational interest of Quad City Kidney Center, Ltd., the previous operator of all these locations. At that time, FMC agreed to execute brand new 15-year leases at each location. All the FMC leases commenced May 1, 2016 and include 10 percent rent escalations every five years with three, five-year renewal options. Portfolio rents are in line with the market with each location in the $19 to $21 rent per square foot range. Prior to their acquisition by FMC, Quad City Kidney Center, Ltd. had a top 10 percent profit margin for all dialysis clinics in the country.
Each site is strategically located either on-campus or adjacent to a health system campus. The Rock Island clinic is on the campus of UnityPoint Health’s Trinity Rock Island campus. The Muscatine site is on the campus of UnityPoint Health’s Trinity Muscatine campus. While the Davenport, Iowa location is not on-campus, it is down the street from St. Ambrose University.
Buyer Profile: Healthcare Real Estate Directed Fund
Seller Profile: Founding Physician of Quad City Kidney Center
