DaVita Dialysis
Recent 5-Year Lease Extension | 2% Annual Rent Increases | Next to Hospital Campus
Marketing description
Overview
Peranich Huffman Net Lease Group is pleased to exclusively present DaVita Dialysis, located at 255 E North Street, Madisonville, KY. This offering provides investors the opportunity to acquire a property leased to a nationally recognized medical tenant. Built in 2011, the 7,253 SF dialysis facility is strategically positioned within in a well‑established healthcare corridor, anchored by the 410-bed Baptist Health Deaconess Madisonville Hospital.
Lease
The property is leased to DaVita Dialysis, under a long‑term agreement extending through May 19, 2031. The lease features a net structure with an annual base rent of $145,060 ($20.00/SF), subject to 2.00% annual increases. Two (2) additional renewal options remain, each for five years, at the lesser of 95% of fair market value or 102% of prior rent, with 2.00% annual increases. DaVita is responsible for occupancy‑related expenses, minimizing landlord obligations and ensuring predictable cash flow.
Tenant
DaVita, Inc. (S&P: BB Stable) is a Fortune 500® healthcare company and the parent entity of Total Renal Care, Inc., one of the nation’s foremost providers of dialysis treatment for patients with chronic kidney failure and end‑stage renal disease. Through its extensive national platform, DaVita Kidney Care manages and supports operations across more than 3,000 outpatient dialysis centers, serving an estimated 248,000 patients annually throughout the United States.
Investment highlights
Recently Executed Lease Extension
Commencing May 2026, the recently executed 5-year lease extension runs through May 2031 with (2) 5‑year renewal options remaining. Rent increases by 2.00% annually in the current term & option periods.
Proximity To Baptist Health Hospital
The DaVita Dialysis is located within a half-mile of Baptist Health Deaconess Madisonville Hospital, the largest healthcare provider in western Kentucky. As the region’s primary hospital serving a six-county area, Baptist Health Deaconess generates a consistent referral pipeline of chronic kidney disease patients requiring dialysis services.
Strong Rent Positioning
At $20.00 PSF, the property is closely aligned with the Madisonville market average of $22.74 PSF, reflecting competitive rental strength and stable income potential relative to comparable assets.
Key Market Location & Accessibility
The subject property benefits from its central position in a regional healthcare hub, supporting consistent patient traffic. The site offers convenient access to major thoroughfares, including Interstate 69 and U.S. Highway 41, supporting accessibility for patients.
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