DaVita Dialysis + Retail
12.5 Years of Lease Term Remaining (DaVita) | 10% Rent Increase in 2033 (DaVita)
Marketing description
Bang Realty-Illinois, Inc. is pleased to exclusively present the DaVita Dialysis + Retail asset, a 18,972 square foot, 100% occupied property located within Chicago’s Bronzeville/Oakland neighborhood. The property is anchored by DaVita Dialysis (89%), complemented by T-Mobile and The Beauty Bar, offering a mix of healthcare, retail, and local service tenancy. DaVita occupies the property under a long-term lease through December 31, 2038, with approximately 12.5 years of lease term remaining.
DaVita Dialysis and T-Mobile operate under NNN lease structures, while The Beauty Bar operates under a modified gross lease. DaVita's rent increases by 10% in 2033, while T-Mobile's rent increases by 3% annually, providing for consistent income growth throughout the primary terms and option periods.
As the anchor tenant, DaVita Dialysis occupies 89% of the subject property for an essential healthcare use. DaVita Dialysis is a leading provider of kidney care in the United States, delivering dialysis services to patients with chronic kidney failure and end stage renal disease. Its corporate parent, DaVita Inc., a Fortune 500® company, holds a credit rating of “BB” Stable (S&P).
Investment highlights
Early 10-Year Lease Extension
Operating at the location since 2013, DaVita Dialysis recently reaffirmed its commitment to the site by executing an early 10-year lease extension, renewing two years before the original 2028 expiration.
Built-In Rent Growth
T-Mobile's rent increases by 3% annually, while DaVita's rent increases by 10% in 2033. The escalations are structured to continue throughout the option periods, compounding income growth and reducing inflation risk.
High-Density Trade Area
Positioned in the 3rd most-populous city in the United States, the subject property is supported by more than 920,000 residents within a 5-mile radius and over 320,000 within a 3-mile radius.
Certificate of Need State
Illinois is one of 11 states that impose Certificate of Need regulations governing dialysis treatment. State approval is required to build, relocate or expand a dialysis center, creating a meaningful regulatory barrier to new competition.
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