Heartland Dental MOB
7.50% Cap Rate | 4+ Years of Lease Term Remaining (Heartland) | 5 Dentist Practice at Location
Marketing description
Offering
Peranich Huffman Net Lease Group is pleased to offer for sale, the Heartland Dental & Palaisa Orthodontics facility located in Frostburg, MD. Priced at an 7.50% capitalization rate, the offering provides an investor with the opportunity to acquire a medical asset that is anchored by a national dental service organization that supports 1,900+ dental offices.
Leases
The 12,000 square-foot property is tenanted by Heartland Dental and Palaisa Orthodontics. Heartland Dental has 4+ years of lease term remaining with (2) 5-year renewal options at fair market value (rent cannot decrease), while Palaisa Orthodontics has 1 year of lease term remaining.
Tenants
Heartland Dental, the largest dental support organization (DSO) in the U.S., delivers comprehensive support in wide range of administrative, operational, and business services to dental practices of all sizes. Through its network of 1,900+ supported offices since 1997 and 3,100+ supported doctors across 39 state, the company employs over 25,000 team members within the Heartland Dental family.
Palaisa Orthodontics provides orthodontics services with an emphasis on unique treatment, affordability, convenience and technology. At the subject property, Heartland Dental and Palaisa Orthodontics share a symbiotic relationship with one another while creating a single location for comprehensive dental health.
Investment highlights
Minimal Landlord Responsibilities
The lease is structured on an net basis, whereby the tenant is responsible for all expenses related to the premises and building, excluding the structure and roof.
High-Volume, 5-Provider Practice
5 dentists operate at the subject property, placing it well above the single or dual-provider profile typical of dental real estate. A multi-provider operation of this size reflects substantial patient volume, chair utilization, and service capacity at the unit level.
Corporately Backed Lease
The Heartland Dental lease was executed by the tenant's corporate entity, Heartland Dental, LLC. Heartland Dental is the largest dental support organization (DSO) in the U.S, supporting over 1,900 dental offices in 39 states.
Value-Add With Stability
Of the building's 12,000 total SF, +/- 2,000 SF consists of an unfinished first floor. As a benefit to the landlord, Heartland Dental is responsible for expenses on this unfinished space. The first floor can be built out and leased, resulting in a higher yield for an owner.
Low Price Per SF
At 12,000 total square feet, the subject property is listed at the low price per square foot of $200/SF.
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