davita dialysis

CONFIDENTIAL OFFERING MEMORANDUM
Actual Location
DAVITA DIALYSIS
1125 South Burnside Avenue | Gonzales, LA
Josiah Byrnes
(719) 243-6569
[email protected]
CONFIDENTIALITY AGREEMENT
TABLE OF CONTENTS
The information contained herein is proprietary and strictly confidential. It is intended to be
reviewed only by the party receiving it from Embree Group and should not be made available to any
other person or entity without the written consent of Embree Group (the Embree Group collectively
refers to Embree Capital Markets Group, Inc., Embree Asset Group, Inc., Embree Healthcare Group,
Inc., and Embree Construction Group, Inc.). This Brochure has been prepared to provide summary
information to prospective investors and to establish a preliminary level of interest in establishing
an investment relationship with Embree, which may or may not include the sale or purchase of any
specific property referenced herein. Several Embree Group employees are licensed real estate
agents and brokers in various states.
PROPERTY AND LEASE SUMMARY
3
TENANT PROFILE
4
PROPERTY PHOTOGRAPHS
5
SITE PLAN
9
The subject property is currently under construction and photos shown herein are representative
only. The information contained herein is not a substitute for a thorough due diligence
investigation. Embree Group has supplied information in this Brochure from sources we believe are
reliable; however, all potential Buyers and Investors must take appropriate measures to investigate
and verify the income and expenses for any specific property, the future projected financial
performance of any specific property, the size and square footage of any specific property and its
improvements, the presence or absence of contaminating substances, PCB’s or asbestos, the
compliance with State and Federal regulations, the physical condition of the improvements thereon,
or the financial condition or business prospects of any tenant or any tenant’s plans or intentions to
continue its occupancy of any specific property.
Embree Group reserves the right to withdraw this solicitation at any time without prior notice. The
information contained herein is based upon sources deemed to reliable, but the accuracy of the
information is not guaranteed, nor should the information contained herein be considered all
inclusive. Statements contained herein which involve matters of opinion, whether or not identified
to be that only, are not representations of fact. The price and terms of this offering may be subject
to change
Prototype
Photo at any time.
LOCATION OVERVIEW
10
DEMOGRAPHICS
12
CONTACT
13
PROPERTY AND LEASE SUMMARY | 3
INVESTMENT OVERVIEW
ADDRESS
2
1125 South Burnside Avenue, Gonzales, Louisiana3
4
TENANT
DVA Healthcare Renal Care, Inc.
GUARANTOR
DaVita HealthCare Partners Inc.
BUILDING SIZE
CONSTRUCTION TYPE
LAND SIZE
5
Approximately 6,700 rentable square feet
6
Wood frame, stucco, and stone veneer
Approximately 1.06 acres
Actual Location
ASSET CLASS
OFFERING
Embree Capital Markets Group is pleased to offer for sale a high-quality,
single-tenant, net-leased medical asset. The property will be newly built in
2015 and is being offered free and clear of any debt. It is a unique
opportunity for an investor to acquire a well-located, credit-tenant asset in
a desirable Louisiana geography.
LOCATION DESCRIPTION
Proto-
Gonzales is located within Ascension Parish, one of the fastest growing
areas in the state. The town is situated approximately 20 miles southeast
of Baton Rouge and 60 miles northwest of New Orleans. According to the
2010 census, the city spans 8.5 square miles and has a population of
approximately 9,781 citizens.
ANNUAL RENT
CAP RATE
PURCHASE PRICE
Single-tenant, net-leased medical
$168,059
6.00%
$2,801,000
EST. COMMENCEMENT
December 14, 2015
EST. LEASE END
December 13, 2030
PRIMARY LEASE TERM
LEASE TYPE
15 years
Modified NNN
LEASE ESCALATIONS
10% every five years
RENEWAL OPTIONS
Two 5-year options
TENANT PROFILE | 4
DaVita HealthCare Partners Inc. provides kidney dialysis services for patients
suffering from chronic kidney failure or end stage renal disease (ESRD).
DaVita HealthCare Partners Inc. was founded in 1994 and is headquartered in
Denver, Colorado.
The company operates in two divisions, Kidney Care and HealthCare Partners.
It operates kidney dialysis centers and provides related lab services primarily
in outpatient dialysis centers and in contracted hospitals. The company offers
outpatient, hospital inpatient, and home-based hemodialysis services; owns
clinical laboratories that provide routine laboratory tests for dialysis and other
physician-prescribed laboratory tests for ESRD patients; and management and
administrative services to outpatient dialysis centers, as well as patient and
physician focused integrated health care delivery and management services;
disease management services; vascular access services; clinical research programs;
physician services; and direct primary care services.
Actual Location
COMPANY TYPE
Public (NYSE: DVA)
2014 REVENUE
$12.8 billion+
STORE COUNT
2,270+
EMPLOYEES
S&P CREDIT RATING
WEBSITE
58,000+
As of December 31, 2014:
The company provided dialysis and administrative services in the United States
through a network of 2,179 outpatient dialysis centers in 46 states and the
District of Columbia serving approximately 173,000 patients.
Operated or provided administrative services to a total of 91 outpatient dialysis
centers location in 10 countries outside of the United States serving
approximately 7,200 patients
Provided integrated care management services for approximately 837,300
members under its care in southern California, central and south Florida,
southern Nevada, central New Mexico, and central Arizona.
BB
Provides acute inpatient dialysis services in approximately 1,000 hospitals and
related laboratory services in the United States.
www.DaVita.com
The company was formerly known as DaVita Inc. and changed its name to DaVita
HealthCare Partners Inc. in November 2012.
Source: Hoover’s, D&B, S&P, Moody’s, and SEC filings. All information believed to be accurate, but not guaranteed.
In 2015, DaVita was ranked #231 on the Fortune 500 list.
PROPERTY PHOTOGRAPHS | 5
INTERIOR VIEW
Actual Location
PROPERTY PHOTOGRAPHS | 6
INTERIOR VIEW
Actual Location
PROPERTY PHOTOGRAPHS | 7
EXTERIOR VIEW
Actual Location
PROPERTY PHOTOGRAPHS | 8
EXTERIOR VIEW
Actual Location
PROPERTY PHOTOGRAPHS | 9
SITE PLAN
LOCATION OVERVIEW | 10
STATE CONTEXT MAP
AREA CONTEXT MAP
GONZALES, LA
GONZALES, LA
Source: Google
Source: Google
LOCATION OVERVIEW | 11
SITE CONTEXT
16,000 VPD
CITY CONTEXT MAP
11,000 VPD
DAVITA
16,000 VPD
6,000 VPD
Source: Google
Source: Google
DEMOGRAPHICS | 12
RADIUS
1 MILE
3 MILE
5 MILE
POPULATION
RADIUS
1 MILE
3 MILE
5 MILE
HOUSEHOLDS
2019 Projection
7,100
24,142
62,905
2019 Projection
2,612
8,905
22,598
2014 Estimate
6,437
22,027
57,428
2014 Estimate
2,370
8,121
20,618
2010 Census
5,887
20,617
53,880
2010 Census
2,173
7,601
19,334
10.30%
9.60%
9.54%
Growth 2014 - 2019
10.21%
9.65%
9.60%
683
1,655
3,496
Owner Occupied
1,618
5,865
16,066
Renter Occupied
752
2,256
4,552
2014 Avg Household Income
$59,394
$66,036
$71,538
2014 Med Household Income
$43,464
$53,664
$61,394
Growth 2014-2019
2014 Population Hispanic Origin
2014 POPULATION BY RACE
White
3,360
14,566
43,074
Black
2,891
6,886
12,862
Am. Indian & Alaskan
14
95
245
Asian
77
177
491
<$25,000
711
1,844
4,039
Hawaiian & Pacific Island
8
15
64
$25,000 - $50,000
584
2,050
4,789
Other
86
288
693
$50,000 - $75,000
422
1,431
3,814
$75,000 - $100,000
302
1,221
3,212
$100,000 - $150,000
237
1,212
3,558
$150,000 - $200,000
61
169
646
$200,000+
54
193
562
Prototype Photo
2014 HOUSEHOLDS BY HOUSEHOLD INCOME
ABOUT & CONTACT | 13
Actual Location
ABOUT EMBREE
The Embree Group of Companies provide nationwide turnkey real estate services, specializing
in build-to-suit development, design/build, general construction, program management, and
capital markets for specialty retail, financial, automotive, restaurant, pharmacy, and medical
facilities. Embree’s fully integrated, in-house services allow us to become an extension of the
tenant's organization. Since 1979, Embree’s foundation has been built on developing tailored
programs for 300+ national clients. The firm is headquartered near Austin, Texas, with regional
offices located in Arizona and California. Over the past 36 years, Embree’s executive team has
developed, built, or transacted more than 10,000 assets in all 50 states, Canada, and Puerto
Rico, with a total market value in excess of $10 billion.
FOR FURTHER INQUIRIES
PLEASE CONTACT:
Josiah Byrnes
(719) 243-6569
[email protected]