Davita Dialysis Center - Bronx, NY
1940 Webster Avenue
Bronx, NY 10457
- Purchase Price: $8,634,480
- NOI: $431,724
- Cap Rate: 5%
- Tenant: Davita Healthcare Partners Inc (DVA)
- Lease Type: NNN
- Lease Commencement: October 2015
- Lease Expiration: October 2030
- Rental Increases: 10% rent increases every 5 years within initial term plus options
- Renewal Options: Two 5-year options
- Ownership Type: Fee Simple
- Landlord Responsibilities: Parking Area, roof, HVAC, and elevator are maintained by Lessor and reimbursed by Lessee as additional rent. Roof repairs are subject to $1,000 cap per lease year.
- Rentable SF: 19,979
- Lot Size: 11,963 SF
- Year Built: 1943 / 2015 Renovation
- Property Offers the Ability to Assume the Existing Debt:
- Loan Assumption: Lender - Freedom Mortgage
- Servicer - PNC
- Balance - $3,590,000
- Interest Rate - 4.4%
- Amortization - 30 year
- Term - 10 year
- Payment - $17,527
Crownstone Investment Group of KW Commercial is pleased to offer on an exclusive basis the fee simple purchase of The Bronx, NY Davita Dialysis Center. There are 14+ years left on the new 15 year corporate guaranteed NNN lease which provides 10% rent increases every 5 years. Davita Healthcare Partners (DVA) holds a BB credit rating, is the fastest growing corporation on the Fortune 500 list and a top holding of Warren Buffett's Berkshire Hathaway.
This asset offers an extremely unique and sought after opportunity to acquire a high-quality, investment grade, single tenant asset with a long term lease in the largest city in America. New York is a Certificate of Need (CON) state, creating significant barriers to entry in the marketplace for any competition. This Davita is located less than a mile from the 461-bed St. Barnabas Hospital as well as being in close proximity to several other healthcare centers.
This Davita is a 2015 build-to-suit project that is a newly completed comprehensive redevelopment of an existing building including new roof, elevator, and new HVAC systems. The building is approximately 19,979 SF on an inline lot of approximately 11,963 SF. Current zoning allows for 4 stories of air rights above the existing office, so the owner could conceivably add 30,000-40,000 SF of residential housing to the site.
This Davita Dialysis Center is located in an exceptionally infill area surrounded by several major redevelopment projects on Webster Ave in The Bronx. The site is situated in close proximity to a major hospital, less than one mile from the 461-bed St. Barnabas Hospital, and surrounded by dense residential housing and several other health care centers including Bronx Health Center, Bronx-Lebanon Hospital Center, Tremont Medical Center and Family Health Center. The Bronx, New York is the northernmost of the five boroughs of NYC.