St. Francis Hospital for Animals_Property for Sale

10709 Kettering Dr, Charlotte, NC, 28226, US

St. Francis Hospital for Animals

Asset Description

Jones Lang LaSalle Americas, Inc. is pleased to offer the fee simple interest in a single tenant St. Francis Hospital for Animals (“St. Francis” or the “Tenant”) in Charlotte, NC, who has operated at the Property for over 27 years. St. Francis is part of a larger veterinarian portfolio owned and operated by Veterinary Innovative Partners (VIP), a leading operator of 37 independent animal hospitals across 9 states. St. Francis is one of only two hospitals owned by VIP in the Carolinas, the nearest location over 100 miles away.

The asset is strategically positioned in a dense healthcare corridor steps from Atrium Health Hospital campus, a 307-bed Level 1 Trauma Center and among IBM Watson’s Top 50 Cardiovascular Hospitals for 4 straight years. Within a 3-mile radius, the local healthcare market is supply constrained with 6.6% vacancy and an outstanding 24% rent growth since 2018.

This Property presents an opportunity to acquire an essential healthcare asset leased on a long-term basis to an established veterinarian hospital in a booming MSA. The asset’s low contract rent, 3.0% annual rent escalations, high growth east coast location and strong local healthcare concentration will drive substantial investor demand for this investment opportunity.

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Attributes

Asking Price

CHF 1,040,000

Building area Net

442 m²

Year built

1984

Land area net

0.23 ha (2,347 m²)

Occupancy

100.00%

Cap Rate

6.75%

NOI

CHF 71,000

Media

Investment Highlights

ESTABLISHED VETERINARIAN OPERATOR WITH LIMITED LOCAL COMPETITION

Leading operator of 37 veterinary hospitals across 9 states with a staff boasting over 20 years of industry experience.
27-year history serving the Charlotte, NC community and one of only two vet hospitals owned and operated by VIP across the Carolinas.

HIGH GROWTH EAST COAST LOCATION WITH STRONG HEALTHCARE CONCENTRATION

55% population growth since 2010 offers lucrative investment prospects in a rapidly expanding market.
200,000+ highly affluent residents that earn $140,000+ in average household income within a 5-mile radius.
57% of residents in the area own a pet, supporting long-term consumer demand for the asset.
Dense commercial and healthcare corridor steps to Atrium Health Hospital (307 beds).

RAPIDLY GROWING VETERINARIAN SERVICES INDUSTRY

$61.8 billion industry revenue growing more than 53.3% since 2010.
23.0 million U.S. households purchased a new pet between 2020 and 2021.
Industry revenue is forecasted to grow over 6.1% to $65.6 billion by 2029.

OPTIMAL LONG-TERM NET LEASE WITH LIMITED LANDLORD RESPONSIBILITIES

8.3 years of lease term remaining with low contract rent, 3.0% rent escalations annually, and one, five-year renewal option.
High likelihood of lease renewal due to low contract rent and 27-year occupancy.