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29708555
29708556

821 School Dr, Poteet, TX 78065

AD
CA CA 02037030
Matthews
MM
CA CA 01982943
Matthews
RC
CA CA 01986299
Matthews
Listed by Matthews
$990,000
110 days on market
Updated 88 days ago
Opportunity zone

Southern Smiles | New NNN Lease | 8.00% Cap | New Credit

Details
Property Type Office
Sub Type Medical Office
Square Footage 3,400
Net Rentable (SqFt) 3,400
Cap Rate 8.00%
NOI $79,200
Occupancy 100%
Tenancy Single
Brand/Tenant Southern Smiles
Lease Type NNN
Lease Term 5
Remaining Term 5
Rent Bumps Yes
Lease Options 2 x 5 Years
Price per SqFt $291
Broker Co-Op Yes
Year Built 1965
Year Renovated 2016
Buildings 1
Stories 1
Investment Type Net Lease
Ownership Fee Simple

TX Dental 8% Cap | 3% Increases | Potential DSO Affiliation | Future Credit Enhancement

Marketing description

Patrick Graham

Broker of Record

License No. 528005, 9005919 (TX)

Matthews Real Estate Investment Services, Inc

Investment highlights

  • Southern Smiles Poteet | Established Practice | Comprehensive Dental Services At Southern Smiles, patients are treated like family. Their mission is simple: to provide high-quality dental care in a warm, welcoming environment where comfort always comes first. Whether their patients arrive for a routine checkup or a complete smile makeover, their team delivers personalized treatment you can trust.

    • The practice blends the friendliness of small-town Poteet with the modern technology you’d expect from a big city practice, giving you the best of both worlds. The practice offers a wide array of dental services including preventative dentistry, restorative dentistry, cosmetic dentistry, general dentistry, along with dental implants, dentures, Invisalign®, veneers, whitening, etc.

  • Recent Renovation and Expansion – The property was completely renovated and extensively expanded onto the property in 2016; the tenant’s investment into the location is a testament to their success and long term commitment.

  • 30-Min from San Antonio | San Antonio, TX MSA | 4th Fastest Growing – The building is part of the greater San Antonio MSA, one of the largest growing regions in the country with 2.7 million people. In 2025, San Antonio was named the nation's’ fourth fastest growing city. The site is located just a 30 minute drive from San Antonio.

  • Potential DSO Affiliation | Larger Creditworthiness | Security of Investment – This practice is in the process of potential affiliation with a large dental service organization, adding substantial upside to the investment both in the short and long term. A new owner may reap the benefits of a larger guaranty and security of investment.

  • Well Known Community | Rich History | Annual Event Driving Consumers - Situated in the heart of Texas, Poteet is a small town with a big heart and a rich history, known as the “Strawberry Capital of Texas.” The city holds an annual Strawberry Festival, a tradition that celebrates the town’s agricultural heritage. Each year, thousands of visitors flock to Poteet to enjoy live music, carnival rides, arts and crafts vendors, and strawberry treats.

  • Single Tenant Healthcare Investment | New 5 Year NNN Lease | 3.00% Annual Increases – This deal features a brand new 5-year lease executed at closing. The lease features 3% annual rental increases, providing a future owner with a boost in cash flow and a hedge against inflation throughout the life of their investment. (See OM)

  • NNN Lease Structure | Ideal 1031 Exchange Property – With a new NNN lease, this deal offers a nearly passive investment opportunity for both local and national investors, ideal for a 1031 exchange. (See OM)

  • Specialized Use | Healthcare Tenancy | Resistant Asset Class – A new landlord reaps the benefits of a specialized healthcare tenancy and further layer of security as healthcare facilities rarely relocate due to the difficulty of retaining the same patients in a new location, and the high cost of moving.

  • $145+ Billion Industry | ~$300 billion by 2032 – The U.S. dental services market size was exhibited at $147.3 billion in 2022 and is projected to hit around USD $295.23 billion by 2032, growing at a CAGR of 7.2% during the forecast period 2023 to 2032.

  • Attractive Rental Increases – The lease include a 3% annual rental increase, ensuring consistent revenue growth and protection against inflation over the lease term.

  • Proximity to Patient Base – The building is located directly across Poteet High School, benefiting from its proximity to one of the practice’s largest patient bases.

  • Healthcare Demand – With increasing healthcare needs in the community, these dental offices are well-positioned to capitalize on local demographics, ensuring a consistent patient base and demand for their services.

  • $145+ Billion Industry – $300 BILLION BY 2032 The U.S. dental services market size was valued at $147.3 billion in 2022 and is projected to reach approximately $295.23 billion by 2032, growing at a compound annual growth rate during the forecast period from 2023 to 2032.

  • Healthcare Real Estate | Recession Resistant Property – Dental practices are highly sought-after investments due to their resilience to economic downturns and immunity to e-commerce trends that impact traditional retail properties.

Listing Contacts

AD
CA CA 02037030
Matthews
MM
CA CA 01982943
Matthews
RC
CA CA 01986299
Matthews
Listed by Matthews

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Loan Amount
$0.00
Annual Debt Service
$--
$--
Annual Cash Flow
$79,200.00
$6,600.00/mo

Valuation Metrics

0
DSCR
8%
Cap Rate
8%
ROI

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Additional Information

Name
Patrick Graham
License
528005, 9005919 (TX)
Brokerage
Matthews Real Estate Investment Services, Inc
Brokerage Phone
(866) 889-0550
Title
Broker of Record
Brokerage Address
8300 Douglas Ave., Ste. 750, Dallas, TX 75225
*All information is deemed reliable but not guaranteed. Buyer to verify all information.
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