Metropolitan Veterinary Hospital (Vetcor)
Vetcor (905+ Locations Corporate Guaranty) 3% Annual Increases, 10.5% Increase in Option Period 1
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PROPERTY HIGHLIGHTS
• Vetcor Corporate Guaranty: Lease is backed by a corporate guaranty from Vetcor – a leading operator of community-based veterinary hospitals across the United States and Canada, supporting 905+ practices.
• Attractive Low Basis – Price & Rent / SF: Offered at $289.94 per SF, with current rent at only $20.30 per SF, providing investors with a compelling below-replacement-cost basis and long-term upside potential.
• 3% Annual Rental Increases: Lease features steady 3% annual increases, delivering consistent organic rent growth and inflation protection throughout the primary term.
• Significant 10.5% Rent Increase In Upcoming Option Period: Upon tenant exercise of the next option period, base rent increases by 10.5%, creating a meaningful built-in rent bump and strong forward value
enhancement (option at tenant’s discretion).
• Full Building Occupancy – Recent Expansion: Vetcor expanded operations within the past few years and now occupies the entire 4,792 SF building, demonstrating operational growth and deepening commitment to this location.
• Extensively Renovated In 2024: The property underwent significant renovations in 2024, signaling substantial tenant capital investment and long-term commitment to the site.
• Passive NNN Structure: NNN lease structure provides minimal landlord responsibilities and a passive investment vehicle.
Investment highlights
TENANT HIGHLIGHTS
• National Platform With Institutional Backing: Vetcor is one of the largest and most established veterinary operators in North America, supporting over 905 community-based practices across the U.S. and Canada.
• Private Equity Sponsorship: Vetcor is backed by Harvest Partners, LP and Cressey & Company, LP. Harvest Partners manages over $20 billion in assets under management and brings more than 40 years of middle- market investment experience, providing substantial financial strength and operational infrastructure.
• Aggressive Growth Strategy: Vetcor continues to acquire 100+ practices annually, expanding its national footprint and reinforcing its position as a top-tier consolidator in the veterinary sector.
• High Barrier To Relocation: Veterinary facilities are capital intensive with specialized buildouts, equipment, and loyal client bases—making relocation highly unlikely and supporting long-term occupancy stability.
• Full Service Veterinary Services: Metropolitan Veterinary Hospital provides comprehensive veterinary services including preventive care, diagnostics, surgery, dentistry, and advanced treatments—driving recurring revenue and durable demand.
• Industry Tailwinds: The global veterinary services market, valued at approximately $150 billion in 2024, is projected to grow at an 8.7% CAGR through 2030, supported by rising pet ownership and increasing per-pet spending.
• Pet Ownership Fundamentals (U.S.): 71% of U.S. households (94 million homes) own a pet. Average annual dog ownership cost is approximately $2,524. U.S. pet industry spending reached $152 billion in 2024.
LOCATION HIGHLIGHTS
• Downtown Tacoma Location: Strategically positioned near Downtown Tacoma, benefiting from strong residential density, waterfront redevelopment, and consistent daytime population.
• Part Of The Greater Puget Sound Region: Tacoma is integrated within the broader Seattle-Tacoma-Bellevue MSA, one of the strongest economic regions in the Pacific Northwest.
• Diverse Employment Base: Major drivers include the Port of Tacoma, healthcare institutions, higher education campuses, logistics, and proximity to Joint Base Lewis-McChord.
• Revitalization & Infill Growth: Ongoing mixed-use and waterfront redevelopment projects continue to enhance walkability, desirability, and long-term property fundamentals.
• Limited Supply Of Veterinary-Ready Real Estate: Freestanding veterinary facilities in urban Tacoma locations are limited, creating barriers to entry and supporting long-term tenancy.
• Prime Walk Score: With a Walk Score of 94 ("Walker’s Paradise"), this location offers effortless access to the surrounding neighborhood amenities.
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