DaVita is the leading kidney care/dialysis provider in the US. A Fortune 500 Company, headquartered in Denver, Colorado. DaVita began in 1999. Their offerings include in-center hemodialysis, in-center nocturnal dialysis, peritoneal dialysis, home hemodialysis, vascular access management, chronic kidney disease education, and renal diet assistance. As of December 31, 2016, DaVita Kidney Care’s footprint spans 2,350 outpatient dialysis centers located in the United States serving approximately 188,000 patients. The company also operated 154 outpatient dialysis centers located in 11 countries outside the United States. Investors covet DaVita’s small price point coupled with the rapid expansion and long-term growth forecast of the overall dialysis industry. Investors take security from the tenant’s actual investment in their build out of the property, along with the installation of specialty trade fixtures within those facilities that make it less likely for the tenant to leave at lease expiration. The nature of DaVita’s business, kidney dialysis, requires clients to visit routinely and consistently, which, in turn, produces a reliable income stream for that location. Case in point, the medical industry as a whole is poised for future growth and net lease investors are recognizing the stability this lends. With and aging Boomer population, the prevalence of chronic kidney disease will rise according to a report published in the American Journal of Kidney Disease. Adults, ages 30 and older, who have CKD is projected to increase from the current 13.2% to 14.4% in 2020, and 16.7% in 2030. These projections continue to support the demand for dialysis centers and the growth in this industry.
|Average Cap Rate|
|Average Property & Lease|