Overview
Matthews Real Estate Investment Services™ Healthcare Division proudly presents a unique opportunity for qualified investors: ownership of a new construction dental office in Horn Lakes, MS. As the largest dental operator in the country, Heartland boasts over 1,800 locations, 2,800 doctors, and 20,000 employees across 38 states. Heartland is not only the largest group in the country but also the fastest growing. They are on pace to add over 100 locations in 2025 through a combination of de novo clinics and acquisitions of existing and successful practices throughout the country. This offering features an absolute NNN lease with over 10 years of lease term remaining, 10% rent increases in year 6, 11, and in every five-year option period. The property sits within a robust retail corridor that has seen rapid development as a response to the high growth of the Mississippi suburbs of the Memphis MSA.
Investment Highlights
- Best in Class Tenant – Heartland Dental is the country’s largest network of dental practices with over 1,800 locations, 2,800 doctors, and 20,000 employees. They have consistently added new locations every year since the company was founded in 1995, and currently are growing at nearly 100 locations per year.
- Recession Resistant, $187 Billion Industry – Dentistry is one of the largest industries in healthcare and grows by an average of 5.3% annually. The property features the opportunity to acquire a property within one of the most important areas of healthcare.
- Robust & Growing Retail Corridor – The property sits within an extremely well positioned retail corridor that has sprouted up over the past decade. The intersection of Horn Lake and Goodman Rd sees a combined traffic count of over 35,000 cars per day. Neighboring national retail tenants include Walmart, Kroger, Aldi, Chick-fil-A and Walgreens, among several others.
- High Growth Market Within Memphis MSA – The NW Mississippi suburbs of Memphis have boasted strong growth over the past five years, and the 5-mile area is projected to grow its population by 1.2% annually over the next five years.
- Absolute NNN Lease – Healthcare properties are rarely offered as completely hands off investments with no landlord responsibilities. This lease structure is perfect for any investor looking for a Class-A tenant and property without any expense, management, or maintenance responsibilities.
- Incredible Inflation Hedge – The new 10% rent increase schedule in years 6, 11, and 13 would grow the rent by over 33% by the start of the first option, equating to an average of 3.0% annual rent growth over the next eleven years. This level of rent growth is rarely offered, as most new construction healthcare properties offer provide 10% increases every five years.
- Specialized Use & Tenant Investment in Location – It is highly cost prohibitive for dental practices to relocate due to having one of the highest build-out costs across all medical specialties. Practices tend to stay put due to difficulty in retaining the same patients after moving.
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