Fresenius Medical Care

701 East Lauchwood Drive, Laurinburg, North Carolina 28352

Total Price: $2,942,000

Cap Rate: 6.26%

  • Annual Rent: $184,164
  • Gross Leasable Area:10,625 sq. ft.
  • Year Built:2003
  • Lot Size:63,461 sq. ft. (1.46 Acres)

This free-standing Fresenius Medical Care dialysis clinic is located in the diverse economic market of Laurinburg, North Carolina. Scotland Memorial Hospital was founded in 1946 and has grown to a 104 bed acute care facility.

East Lauchwood Drive, Laurinburg, North Carolina

The property is situated on a corner location with close proximity to Scotland Memorial Hospital and Interstate 74. The site is located within the medical area of Laurinburg while surrounding tenants include dental and family physician offices etc.

Site OVERVIEEW

This free-standing Fresenius Medical Care dialysis clinic is located in the diverse economic market of Laurinburg, North Carolina. The property is situated on a corner location with close proximity to Scotland Memorial Hospital and Interstate 74. The site is located within the medical area of Laurinburg while surrounding tenants include dental and family physician offices, Scotland County Neurology, Eaton Park Hospice, Scotland Memorial Hospital and several other medical tenants. Scotland Memorial Hospital was founded in 1946 and has grown to a 104 bed acute care facility. Today, Scotland Health Care System is a community owned and controlled organization and consists of several care facilities and clinics within Laurinburg and Scotland county.

Investment Overview

  • Tenant:Bio-Medical Applications of North Carolina, Inc.
  • Lease Guarantor:Fresenius Medical Care Holdings, Inc.
  • Price:$2,942,000
  • Cap Rate:6.26%
  • Annual Rent:$184,164
  • Gross Leasable Area:10,625 sq. ft.
  • Minimum Investment: $150,000
  • Rent Increases: 14% on 11/1/16
  • Renewal Options: 3 5-year options
  • Lease Term: 10/25/2002 – 10/31/2023
  • Lot Size: 63,461 sq. ft. (1.46 Acres)
  • Year Built: 2003
  • Lease Type: NN

Property Highlights

Tenant:

  • Fresenius Medical Holdings, Inc., a subsidiary of Fresenius Medical Care Ag & Co KGAA – the world’s largest dialysis operator
  • 1,832 clinics in North America
  • Net income of $621 million*
  • Annual revenues of $8.03 billion and a net worth of $7.95 billion*

Location:

  • Located in Laurinburg, NC, a diverse economic city
  • Corner location with close proximity to Interstate 74
  • Located within the medical area of Laurinburg with several medical tenants including Scotland Memorial Hospital, a 104 bed acute care facility

Lease Terms:

  • Long-term net lease – 11 years remain on initial term
  • 14% rent increase November 1, 2016
  • 6.60% Average cap rate over remaining lease term**

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 and is expected to grow to more than three million by 2020. Through over 2,900 kidney dialysis clinics in North America, Europe, Latin America, Asia-Pacific and Africa, they provide treatment to more than 230,000 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 were $12.79 billion, resulting in a net income of $1.07 billion. As of December 31, 2011 FMS had total shareholder’s equity of $7.90 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 60% of FMS’s revenues in 2011.

  •  Headquartered in Waltham, Massachusetts, FMCH employs 45,000 people and is the leading provider of kidney dialysis services and renal care products in North Americ.
  • FMCH have more than 1,800 kidney dialysis clinics and care for nearly 142,000 patients in the United States.
  • FMCH is composed of two divisions. Fresenius Medical Services, which provides ongoing dialysis treatment for patients through their network of national facilities, and The Renal Therapies Group, which manufactures and distributes a variety of dialysis products and equipment.

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