Listed by Matthews
$4,159,952
VCA Old Marple Animal Hospital | 1000+ Unit Operator
Details
Property Type Office, Retail
Sub Type Medical Office, Animal
Square Footage 25,000
Cap Rate 8.25%
NOI $343,196
Occupancy 100%
Tenancy Single
Lease Type NNN
Lease Term 20
Lease Expiration 12/29/2029
Remaining Term 3.6
Rent Bumps Yes
Lease Options 3 x 5 Year
Price per SqFt $166
Broker Co-Op Yes
Class A
Acreage 1.530
Investment Type Net Lease
Tenant Credit Credit Rated, Corporate Guarantee
Lease Commencement 12/28/2009
Ground Lease No
8.25% Cap | NNN | 25,000 SF | Philadelphia MSA | Corporate Guaranty
Investment highlights
- Full-Service Veterinary & Specialty Hospital – This facility provides a comprehensive range of services including 24/7 emergency and critical care, specialty care (surgery, imaging, endoscopy, ophthalmology), primary & preventive care (wellness, dentistry, grooming, vaccinations), and diagnostics & inpatient services (lab, pharmacy, ICU, isolation).
- Over 75 Years of Trusted Service – Founded in 1949, this practice is a well-known staple in the Springfield community and reflects its longstanding commitment to provide high quality pet care to pets and their families.
- NNN Lease – This NNN lease provides an extremely passive, hands-off investment, with the landlord solely being responsible for the foundation and structure of the building.
- Scheduled Rental Increases – The lease features 2% annual rental increases, providing a future owner with a boost in cash flow and a hedge against inflation throughout the life of their investment.
- Corporate Guaranty – The lease features a corporate guaranty from VCA, the largest operator of veterinary hospitals across the United States, supporting over 1,000 practices nationwide.
- Private Equity Sponsorship – Mars, Inc. is a privately held multinational corporation generating more than $50 billion in annual revenue, with a diverse portfolio that includes pet care, veterinary services, food, and confectionery. Ranked as the fourth largest privately held company in the United States, Mars strengthened its position in animal health with the $9.1 billion acquisition of VCA Animal Hospitals in 2017, creating one of the nation’s largest veterinary platforms and reinforcing its reputation as a premier healthcare investor.
- Tenant Capital Improvements – Since acquiring the business in 2009, VCA has invested well over $1,000,000 in comprehensive interior renovation of both the hospital and on-site kennel.
- Below Market Rent – VCA is currently paying rent at $13.73 per square foot, well below the market rate, presenting a significant future upside to increase rents.
- AAHA Accreditation – The American Animal Hospital Association (AAHA) sets the benchmark for excellence in companion-animal veterinary care. Earned by only about 15% of veterinary practices in the U.S., AAHA accreditation signifies that a hospital meets or exceeds over 900 rigorous standards covering patient care, safety, and operational performance, assuring clients of the highest level of veterinary service. Accredited practices consistently experience measurable business advantages, including higher revenue, stronger client retention, increased new-patient growth, and reduced client attrition.
- Strategic Location – The 25,000 SF facility is strategically positioned directly off Interstate 476, one of Philadelphia’s primary north-south corridors, which sees over 85,000 vehicles per day and offers seamless connectivity throughout the Philadelphia metropolitan area. The property is conveniently located just 10 miles from Philadelphia International Airport and less than 30 minutes from Center City Philadelphia, providing exceptional regional accessibility.
- Philadelphia MSA – The property is located within the Philadelphia MSA, the 8th largest metropolitan area in the United States with a population exceeding 6.3 million residents and a GDP of approximately $500 billion. The Philadelphia MSA boasts a highly diversified economy anchored by major sectors such as healthcare, education, finance, technology, and logistics, and is home to numerous Fortune 500 companies and world-renowned institutions including the University of Pennsylvania, Comcast, Children’s Hospital of Philadelphia, and Jefferson Health.
- Favorable Demographics – This asset caters to more than 365,000 residents within a 5-mile radius with an average household income exceeding $135,000.
- Recession Resistant Property – Veterinary Hospitals are extremely sought-after investments for their resistance to downturns in the economy and e-commerce trends that affect traditional retail properties.
- Tenant Investment Location – Pet Hospitals rarely relocate due to difficulty retaining the same patients in a new location and the high costs associated with moving and build outs.
- Robust Industry Growth – The global veterinary services market, valued at $150 billion in 2024, is projected to grow at a 8.7% CAGR from 2023 to 2030.
Listing Contacts
Listed by Matthews
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Loan Amount
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Annual Debt Service
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Annual Cash Flow
$343,196.00
$28,599.67/mo
Valuation Metrics
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DSCR
8.25%
Cap Rate
8.25%
ROI
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