Flagship Fresenius Kidney Care | Sacramento, CA
Renovation-to-Suit Corporate Guaranteed Flagship Fresenius Kidney Care
Marketing description
Flagship Fresenius Kidney Care – Mack Road is a purpose-built outpatient dialysis facility located in Sacramento, California. The approximately 25,000-square-foot property is 100% leased to Fresenius Kidney Care under a long-term triple net lease.
The lease commenced September 1, 2022 and carries a 15-year initial term, providing durable income visibility through August 31, 2037, exclusive of renewal options. The facility represents a relocation and significant expansion for Fresenius Kidney Care, more than doubling the size of its previous location to accommodate growing patient demand in the South Sacramento market. The larger footprint also provides additional expansion capacity should future demand warrant.
The facility is configured with 48 in-center dialysis treatment stations, positioning it as a high-capacity renal care provider within the South Sacramento trade area. Dialysis treatment is life-sustaining and medically necessary, typically administered multiple times per week, creating recurring, reimbursement-backed revenue and consistent patient demand.
The property is strategically located in close proximity to Kaiser Permanente South Sacramento Medical Center, one of the largest Kaiser medical campuses in California and a major regional healthcare hub serving the greater South Sacramento market. The adjacency to a large integrated healthcare system enhances referral dynamics and reinforces the property’s positioning within an established medical corridor.
Significant tenant investment was made into the specialized build-out and renovation of the facility, including a new 25-year roof, all new building systems, water purification systems, plumbing infrastructure, and electrical capacity required for dialysis operations. The highly specialized nature of these improvements increases tenant retention and reduces relocation probability.
Investment highlights
Long-Term 15-Year Lease
The 15-year lease term commenced in September 2022, providing long-duration income stability and predictable cash flow visibility.
Investment Grade Corporate Guaranty
The lease is guaranteed by Fresenius Medical Care Holdings, Inc (FMCH) providing corporate investment grade credit strength. (BBB S&P/Fitch)
High-Capacity 48-Station Facility
The 48-station configuration positions the property as a scaled, high-volume dialysis treatment center within the South Sacramento submarket.
Strategic Hospital Proximity
Located near Kaiser Permanente South Sacramento Medical Center, one Kaiser’s largest medical center in the state of California.
Relocation & Expansion Due to Demand
The facility represents a relocation and expansion for Fresenius Kidney Care, more than doubling its previous footprint to meet growing patient demand for Kaiser South Sacramento.
Triple Net Lease Structure
The NNN lease structure provides predictable income with limited landlord responsibilities.
$10M+ Tenant Investment & Renovation-to-Suit
Significant tenant-funded renovations included a new 25-year roof, all new building systems, and specialized dialysis infrastructure, reinforcing long-term commitment to the location while limiting future capital needs.
Accelerated Depreciation Opportunity ($3.3M)
Through a Cost Segregation study, we are projecting, in the first year (2026) accelerated tax depreciation of more than $3,373,000 with 100% bonus depreciation.
CAM Reimbursement & 3% Management Fee Income
All common area maintenance is reimbursed by the tenant, and ownership receives a 3% management fee on total gross rents, generating approximately $27,000–$30,000 of additional annual income beyond base rent with minimal operational responsibility.
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