Fresenius Medical Care - Elk River, MN

17315 Zane Street NW
Elk River, MN 55330

Marketing Materials

Overview

The Property is a freestanding building tenanted by Bio-Medical Applications of Minnesota Inc. (d/b/a Fresenius Medical Care Central Minnesota Regional Dialysis) on a net lease with over six years of primary lease term remaining. The lease features two percent annual rent escalations, minimal landlord responsibilities and three, five-year options for renewal. Located in Elk River, the Asset benefits from a growing residential community in close proximity to two of Minnesota’s major cities – Minneapolis and Saint Cloud. The Asset offers investors the opportunity to acquire an internet-resistant dialysis center with contractual rent growth and investment-grade tenancy.
  • Primary Broker

    Nicholas G. Kanich - Net Lease Broker
    Nicholas G. Kanich
    +1 312 228 2093

  • Secondary Broker(s)

    Alex Sharrin - Net Lease Broker
    Alex Sharrin
    312 228 3197

  • In-State Licensee

    Edward Tarbox - Net Lease Broker
    Edward Tarbox
    MN

Contact

First Name*

Last Name*

Company*

Phone Number*

Email*

I am interested in this property. Please contact me at your earliest convenience.


Investment Highlights
• The tenant has over six years of primary term remaining on a double-net lease structure with a corporate guarantee from Fresenius Medical Care Holdings, Inc. (S&P: BBB-)
• Strategically located along US 169 (50,000 VPD) and near the interchange of US 10, MN 101 and US 169, the Property has exposure to two of the major highways that lead into downtown Minneapolis
• National retailers in the immediate area include Walmart Supercenter, Home Depot and Target, and the major employers include Great River Energy, Spectrum High School, Cretex and Elk River Senior High School
• Elk River’s robust population growth of 3.5% annually has led to the development of numerous multifamily communities surrounding the Asset, including Pullman Place, a 65-unit senior living community
• The Asset is in close proximity to Elk River Station, one of the main Metro Transit train stations for workers commuting to and from downtown Minneapolis
• The tenant is a leading provider of products and services for people with chronic kidney failure. The company treated more than 320,000 patients in their global network of 3,700 dialysis clinics in 2017
• Located just 30 miles northwest of downtown Minneapolis, Elk River has developed into one of the major suburbs in the Minneapolis MSA
• While Minnesota is no longer a Certificate of Need state, the state retains several approval processes that function similarly
General
Property Type Retail
Property Address 17315 Zane Street NW
Elk River, MN 55330
Land In Acres 1.43
Building Size 7,000 Square Feet
Primary Use Freestanding
Tenancy Single-Tenant
Financial
Price $1,876,943
Price PSF $268.13
Cap Rate 7.00%
Current NOI $131,386
Lease
Tenant Name Fresenius Medical Care
Guarantor Fresenius Medical Care
Annual Rent $131,386
Rent Escalations 2% Annually Throughout the Primary Term
Options 3, 5-Year Options
Lease Start Date 5/1/2013
Lease Expiration Date 4/30/2025
Remaining Term 6.6Yrs