Description

JLL is pleased to exclusively offer for sale the Sunbelt Dialysis Portfolio (the "Portfolio"), a 14-property collection of dialysis and nephrology real estate totaling 148,290 square feet across the Phoenix, Tucson, Tampa and Boca Raton markets. The Portfolio is 100% leased to a complementary group of kidney-care operators anchored by DaVita Inc., the nation's largest dialysis provider, together with Southwest Kidney Institute (“SKI”) and Florida Kidney Physicians (“FKP”), the leading physician-owned nephrology practices in Arizona and Florida, respectively.

The assets form the clinical footprint of the two practices and their DaVita joint ventures: nephrology offices, in-center and home dialysis clinics and a vascular access center, frequently co-located in the same building. This referral-driven ecosystem, in which the physician practice managing the patient's kidney disease sits beside the dialysis clinic treating it, creates exceptional tenant stickiness and mission-critical real estate.

The Portfolio generates $4,173,884 of rent under net leases with a WALT of 6.7 years and contractual rent growth on every lease, including 2.5% annual escalations on the practice leases and 10% five-year increases on the DaVita build-to-suit leases, equating to a rent-weighted five-year rent CAGR of 2.1%. ~50% of income is derived from DaVita-affiliated entities.

The Portfolio’s assets sit in established medical corridors adjacent or proximate to the hospital campuses that generate dialysis referrals, in trade areas that combine density, affluence and growth. Across the Portfolio, the average five-mile population is over 230,000 residents, one-mile average household incomes range from roughly $70,000 to more than $150,000, and several trade areas have grown more than 13% since 2020. Phoenix and Tampa Bay rank among the fastest-growing major metros in the country, particularly for the 65+ population that drives dialysis demand.

The Portfolio offers investors immediate scale in two of the fastest-growing Sunbelt states, with 100% occupancy, contractual rent growth on every lease and a tenant base anchored by the nation's largest dialysis provider as well as the leading nephrology practices in each market.

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Attributes

Occupancy

100%

WAULT

6.7 years

Building area gross

13,777 m²

Rent PSF

₩37,835.47

DaVita Portfolio - AZ & FL (13 Properties)

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Investment Highlights

100% leased, 14-property net lease portfolio totaling 148,290 SF across Phoenix, Tucson, Tampa and Boca Raton with a 6.7-year WALT
Low in-place average portfolio rent of $28.15 PSF with 2.5% annual bumps on the practice leases and 10% every five years on the DaVita build-to-suit leases
Anchored by DaVita (BB S&P / Ba2 Moody's), the nation's largest dialysis provider, with $13.6 billion of FY2025 revenue and 2,671 U.S. centers
Built in referral ecosystem through co-tenancy with Southwest Kidney Institute (60+ physicians, 40+ Arizona locations) and Florida Kidney Physicians (100+ physicians, 40+ Florida locations)
Mission-critical, sticky real estate as clinics are CMS-certified with specialized infrastructure. Tenants have repeatedly re-committed to the sites through renewals
Scale in two of the fastest-growing Sunbelt regions with ten assets in Phoenix/Tucson and four in Tampa Bay/South Florida, in medical corridors adjacent or proximate to hospital campuses, with an average five-mile population over 230,000 and several trade areas up more than 13% since 2020