801 CHERRY ST SE Grand Rapids MI 49506-1440

Prime West Michigan Location | Central Grand Rapids - Strategically positioned along Cherry Street SE in the heart of Grand Rapids, the subject property benefits from strong regional demographics and proximity to major medical providers, residential neighborhoods, and downtown amenities. Grand Rapids is the second-largest city in Michigan and part of a thriving metropolitan area that includes Wyoming and Kentwood. The Grand Rapids–Wyoming–Kentwood MSA recorded a population of 1,150,015 at the 2020 census, reflecting a growing and interconnected regional market that continues to support stable employment and a deep patient base.

Corporate Guaranteed Lease | Investment-Grade Tenant - The property is leased to DaVita Inc. (NYSE: DVA), a leading national provider of kidney care services with over 2,800 locations across the United States. The corporate guarantee from DaVita ensures reliable, long-term cash flow backed by an established healthcare operator with a strong credit profile and consistent earnings performance.

Extensive Medical Build-Out | Hard-to-Replicate Facility - The property includes 36 dialysis stations and features an extensive medical build-out, making it a highly specialized and difficult-to-relocate facility. DaVita invested $100,000 in 2018 for a new roof and eight new HVAC units, along with a full renovation of the first floor (excluding restrooms). The site is served by two elevators and offers a combined 50 parking spaces across both parcels—18 spaces at 801 Cherry St SE and 32 spaces at 817 Cherry St SE.

Established Patient and Employee Base | Regional Presence - DaVita currently serves approximately 144 in-center patients and 15 home patients, supported by a team of 30 on-site employees. Within a 20-mile radius, this is the largest treatment facility in the region, offering the most dialysis stations and reinforcing DaVita’s long-term commitment to the Grand Rapids market.

NNN Lease Structure | Passive, Stable Income Stream - The property is leased on a Triple Net (NNN) lease structure, minimizing landlord responsibilities to only the structural components of the building. This allows investors to benefit from predictable, recession-resistant income with the tenant responsible for taxes, insurance, and all non-structural maintenance.

Significant Remaining Lease Term | Recent Proven Tenant Commitment - DaVita has demonstrated a long-term commitment to this 20,000 SF facility, with the early execution of a new five-year lease extension and multiple renewal options in place. The tenant’s continued occupancy highlights the strategic importance of this location within their regional network and its role in serving Grand Rapids’ growing population.

Attractive Basis and Cap Rate | Strong Midwest Healthcare Market - Offered at a 7.00% cap rate, this asset provides an attractive yield compared to similar credit healthcare tenants nationwide. The cap rate is based on the new rent from the recently executed lease extension which takes effect on 1/1/2027. The seller will provide a rent credit to buyer for the difference between the in-place rent and the increase rent based on the closing date of the transaction.