Fresenius Medical Care

3919 Atlanta Highway, Hiram, Georgia 15237

Price: $2,954,687

Initial Cap Rate: 6.70%

  • Average Cap Rate: 7.16%
  • Annual Rent: $197,964
  • Gross Leasable Area: 8,424 sq. ft
  • Minimum TIC Investment: $150,000

For real estate owners seeking high-quality property investment for direct ownership or to complete their 1031 exchanges, net leased commercial properties are one of the most sought-after assets. AEI has been specializing in commercial net lease property investments since 1974.

3919 Atlanta Highway, Hiram, Georgia

Close proximity to a number of other health care providers including Wellstar Paulding Hospital.
Directly across from Suntrust Bank with a CVS Pharmacy and several other shopping centers just across Marietta Highway.

Investment Overview

For TIC investors seeking direct asset ownership, a commercial income property under a long-term net lease to a name-brand corporate tenant is a very attractive choice. AEI is a leader in the TIC industry. We were the first company in America to offer securitized TIC investments in 1992. We were the first company to receive a favorable Private Letter Ruling from the IRS with respect to the qualification of our 1031-TIC offerings as “like-kind” exchanges. AEI is one of the most experienced sources of net lease property TIC offerings in the country. This offering brings the optimal components of an AEI property together in one investment. A category leader, Fresenius, a property in an ideal location and and attractive long-term lease.

Property Highlights

  • Located in Hiram, Georgia, an excellent location in a growing Atlanta suburb.
    – 74,090 people within a five mile radius.
    – Average household income is $82,000.
  • Close proximity to a number of other health care providers including Wellstar Paulding Hospital.
  • Directly across from Suntrust Bank with a CVS Pharmacy and several other shopping centers just across Marietta Highway.

Tenant Profile

About the Parent Company:
Fresenius Medical Care Ag & Co KGAA (NYSE: FMS) is the world’s largest integrated provider of products and services for individuals undergoing dialysis because of chronic kidney failure, a condition that affects more than two million individuals worldwide. Through over 2,700 clinics kidney dialysis clinics in North America, Europe, Latin America, Asia-Pacific and Africa, they provide treatment to more than 215,000 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’s 2011 revenues exceeded $12 billion, and its net income exceeded $978 million. As of December 31, 2011 FMS had total shareholder’s equity of $7.38 billion.

About the Lease Guarantor:

Fresenius Medical Care Holdings, Inc. (FMCH), which guarantees the lease, conducts business under the trade name Fresenius Medical Care North America. FMCH is a wholly owned subsidiary of Fresenius Medical Care and was responsible for 67% of FMS’s revenues in 2010.

Atlanta Area Demographics

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