CareVet Veterinarian Hospital_Property for Sale

1938 Dam Road, West Branch, MI, 48661, US

CareVet Veterinarian Hospital

Asset Description

JLL is pleased to offer the fee simple interest in a recently leased, single tenant CareVet Veterinarian Hospital (“CareVet” or the “Tenant”) located in West Branch, MI, the principal city of Ogemaw County. CareVet is a leading operator of 150+ independent animal hospitals across 35 states with more than 2,300 employees. For the past 47 years, the Tenant has successfully offered a wide array of veterinarian services to the West Branch community and affirmed its long-term commitment with a new 10-year lease.

Recently retrofitted for the Tenant with a rent commencement in December 2022, CareVet is operating on a new long-term net lease with 9.6 years of primary term remaining, 2.0% rent increases annually, and limited landlord responsibilities. The asset is located on a 2.4-acre site with ease of access to over 20,500 residents across the county.

This opportunity epitomizes an essential healthcare asset offering secure, long-term cash flow backed by an established veterinarian hospital operator.

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Attributes

Asking Price

₫38,863,455,000

Building area Gross

851 m²

Occupancy

100.00%

Year built

2000

Land area Gross

0.97 ha (9,712 m²)

Cap Rate

7.25%

NOI

₫2,817,894,000

Media

Investment Highlights

ESTABLISHED VETERINARIAN OPERATOR WITH LIMITED LOCAL COMPETITION

Leading operator of 150+ veterinary hospitals across 35+ states with more than 2,300 employees.
47-year history serving the West Branch, MI community and one of only three vet hospitals across the entire county.

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.

PREMIER PRIVATE EQUITY SPONSOR WITH A TALENTED MANAGEMENT TEAM

CareVet’s private equity sponsor, Compass Group Equity Partners, is an industry leader with 50+ lower middle-market transactions valued at more than $1 billion.
Experienced investment manager with considerable knowledge and resources focused on creating long-term value within the healthcare sector.

OPTIMAL LONG-TERM NET LEASE WITH LIMITED LANDLORD RESPONSIBILITIES

9.6 years of lease term remaining with 2.0% rent escalations annually including three, five-year renewal options offers a secure and growing income stream to hedge against inflation.