DaVita

Coldwell Banker Commercial is pleased to offer qualified investors the opportunity to acquire the fee-simple interest in a newly constructed, single-tenant medical office facility located in Modesto (the “Property”). The Property consists of 0.61 acres improved with a one-story, 4,214-square-foot medical office building that was built-to-suit in 2023 to the Tenant’s exact spec-ifications. Investors may also acquire an adjacent, vacant 0.57-acre parcel featuring designed shared parking access and expansion flexibility. The Property is strategically positioned near the signalized intersection of Dale Road (approximately 14,000 vehicles per day) and Kiernan Avenue (approximately 27,000 vehicles per day) and is immediately adjacent to the region’s dominant hospital campus, Kaiser Permanente’s Modesto Medical Center. The surrounding five-mile trade area includes approximately 129,000 residents with an average household income exceeding $97,000 annually. The Tenant recently completed a comprehensive build-to-suit incorporating its brand-new prototype, representing the top tier of the kidney care industry with respect to patient experience, clinical functionality, and energy-efficient design standards. A neighboring dialysis facility—developed as a build-to-suit approximate-ly six years ago and owned by a third party—previously housed both inpatient and home-health operations. Due to physical constraints within that building, the Tenant was unable to expand its inpatient hemodialysis services. To accommodate growth, the Seller acquired the adjacent parcel and relocated the home-health component into the newly constructed facility, allowing inpatient operations to expand within the original building. The two complementary facilities now house distinct functions, with supervising medical professionals able to walk between locations. The Property is secured by an initial fifteen-year (15-year) lease term featuring three (3) five-year renewal options. The lease is the Tenant’s standard form used across the majority of its national portfolio and is structured as a highly passive, landlord-favorable net lease with minimal expense exposure due to the new con-struction. Rental increases of ten percent (10%) occur every five (5) years throughout the term and option periods. The lease is unconditionally guaranteed by DaVita, Inc., one of the world’s leading kidney care providers, operating more than 2,724 outpatient clinics across 46 states and providing acute inpatient dialysis services in approximately 850 hospitals nationwide. DaVita, Inc. is publicly traded and ranked No. 323 on the Fortune 500. As of December 31, 2022, the company reported revenues exceeding $11.61 billion and net income of approximately $547 million. DaVita, Inc. is credit-rated Ba3 by Moody’s Investor Services and BB by Standard & Poor’s Rating Service. Berkshire Hathaway, led by Warren Buffett, is a long-time shareholder and owns approximately 38% of the company’s outstanding shares, representing one of its largest equity positions.