AEI Healthcare Portfolio DST

Four debt-free properties occupied by multi-billion dollar corporate tenants

Total offering: $21,748,000

Debt: None (Debt-free)

  • Initial annual distribution rate: 5.09%
  • Distribution frequency: Monthly
  • Average remaining lease term: 14 years*
  • Minimum investment: $100,000 for a 1031 exchange

AEI Healthcare Portfolio DST consists of a portfolio of four single-tenant, net leased properties owned through a Delaware Statutory Trust (DST) structured to be suitable for 1031 exchange investment.

Four debt-free properties occupied by multi-billion dollar corporate tenants

This offering is for accredited investors seeking stable, long-term income and tax deferral through a high-quality, fractional real estate investment.

Investment Overview

AEI Healthcare Portfolio DST consists of a portfolio of four single-tenant, net leased properties owned through a Delaware Statutory Trust (DST) structured to be suitable for 1031 exchange investment. This offering is for accredited investors seeking stable, long-term income and tax deferral through a high-quality, fractional real estate investment.

  • Total offering: $21,748,000
  • Debt: None (Debt-free)
  • Initial annual distribution rate: 5.09%
  • Distribution frequency: Monthly
  • Average remaining lease term: 14 years*
  • Anticipated exit strategy: Liquidate approximately 10 years after completion of the offering period
  • Minimum investment: $50,000 for a cash investment

Portfolio Assets

  • Markets: Three distinct markets throughout the United States
  • Sectors: Each tenant operates in a specific medical sector
  • Tenants: Each property is net leased to an industry-leading corporate tenant
  • Leases: All leases are long-term, full faith and credit net leases
  • Escalators: All leases include contractual rental escalators increasing income over time
  • National Diversif ication: Prior to purchase, each property and location was subjected to extensive due diligence to create a diversified portfolio of commercial properties leased to well-known companies in superior locations across the United States.

BioLife Plasma Services

About the Tenant:

BioLife Plasma Services is an industry leader for the collection of high-quality plasma that is processed into life-saving therapies. The company operates numerous state-of-the-art plasma collection facilities throughout the United States and Austria.

Baxalta Inc., the parent company of BioLife Plasma Services, is the lease guarantor. Baxalta is a leading biopharmaceutical company that advances innovative therapies in hematology, immunology, oncology for the treatment of hemophilia, bleeding disorders, immune deficiencies, alpha-1 antitrypsin deficiency, and other chronic diseases. Baxalta’s global net sales totaled $6.15 Billion in 2015, an increase of 3.3% over 2014 and has a total equity of $3.9 Billion. In June of 2016, Baxalta completed a $32 Billion merger with Shire Pharmaceuticals, creating what it called the global market leader in the treatment of rare diseases and other specialized disorders.

Fresenius Medical Care

About the Tenant:
About the Tenant: Fresenius Medical Care Ag & Co KGaA  (NYSE: FMS)

Fresenius Medical Care Ag & Co KGaA is the world’s largest integrated provider of products and services for individuals undergoing dialysis treatment due to chronic kidney failure, a condition that affects more than 2.6 million individuals worldwide. With more than 3,360 kidney dialysis clinics in approximately 45 countries, Fresenius provides treatment to nearly 300,000 patients. FMS is also the world’s pre-eminent provider of dialysis products such as hemodialysis machines, dialyzers and related disposable products.

Fresenius Medical Care Holdings, Inc. (FMCH), is the guarantor the lease and is the North American subsidiary of FMS. FMCH employs approximately 60,000 people. In 2016, FMCH reported revenues of $12.88 Billion.

Location: 2349 Sparta Way, Braselton, GA

Braselton is located in the southern part of Hall County, approximately forty-miles northeast of Atlanta. The population of Braselton grew 26% between the years of 2010-2015 largely due to its close proximity to Atlanta. Sixteen FORTUNE 500 companies are headquartered in Atlanta and it is home to the world’s busiest and most efficient airport.

The property is located approximately seven-miles northwest of downtown Braselton along Route 347 which provides direct access to the heavily traveled Interstate 985. The Northeast Georgia Medical Center-Braselton location is just three miles down the road from the property.

DaVita, Inc.

DaVita, Inc. was founded in 1994 and is a leading provider of dialysis services in the United States. The company specializes in the treatment of patients with chronic kidney failure and end-stage renal disease. DVA also operates DaVita Rx, a pharmacy that provides oral medications to patients with end-stage renal disease. As of December 31, 2016, DaVita Kidney Care operated or provided administrative services at 2,350 outpatient dialysis centers located in the United States, serving nearly 200,000 patients. The company also operated 154 outpatient dialysis centers located in eleven countries outside the United States.

DVA is headquartered in Denver, Colorado and employs more than 50,000 team members. As of December 2016, DVA had total revenues of $14.7 Billion, net income of $880 Million, and total equity of $4.6 Billion.

About The Sponsor

AEI is one of America’s most experienced sponsors of commercial property investment programs for both investment and 1031 exchange purposes. For more than 40 years, AEI has sponsored more than 130 net leased property offerings representing the investment capital of more than 20,000 investors nationwide. Nearly all of AEI’s net lease property offerings have been structured without debt to provide investors with a lower risk investment opportunity. AEI investments are managed by a professional team of real estate, investment, financial, and legal experts. Generally considered to be the first securities firm in America to offer a securitized 1031 exchange solution, AEI offered its first fractional 1031 exchange investment in 1992. AEI was also the first to apply for, and receive, a favorable private letter ruling from the IRS affirming the use of securitized real estate as replacement property in a 1031 exchange.

Investment Strategy

  • Debt-free: With no mortgage debt, properties are not subject to the risk of interest rate fluctuations or foreclosure.
  • Long-term net leases: Tenants pay for most or all property expenses, such as: taxes, insurance and maintenance, which helps to create income stability for the property owners.
  • Creditworthy tenants: AEI’s leases represent a company-wide obligation of the corporate tenants.
  • Rental increases: Rental escalators, when present, can serve to increase income over time.
  • Location: Major corporate tenants typically occupy quality commercial locations.
  • Diversification: Owning properties in multiple industries and markets can help create a diversified portfolio.

ABOUT AEI

Founded in 1970, AEI is one of America’s oldest sponsors of net lease real estate investment programs and a leader in the TIC- 1031 exchange industry. AEI is a national source of high quality, commercial real estate for property owners engaged in 1031 tax-deferred property exchanges. AEI has specialized in developing, evaluating and purchasing these types of properties for more than 35 years and offers a portfolio of name-brand, net leased commercial retail properties.

Why come to AEI for your TIC or 1031 properties?

Exceptional service. If this is your first 1031 property exchange or TIC purchase, we make every effort to ensure that you fully understand the transaction. Our experienced professionals are available to assist you at each step.

Stability and quality. AEI offers quality, single tenant properties – freestanding real estate occupied by creditworthy corporate tenants under long-term net leases.

Acquisition expertise. AEI has performed institutional-grade due diligence on every property we own. Acquiring property from AEI can reduce this time-consuming, labor-intensive aspect of your property selection process and provide a higher level of expertise than you may be able to provide yourself.

Post-purchase services. After your property purchase is complete, AEI can provide the following services:

  • Accounting and distribution of rental income
  • Year-end 1099 forms for tax reporting
  • Assisting with any management concerns you may have about your property
  • Monitoring lease compliance, tax and insurance payments, and property maintenance by the tenant