Overview
Marcus & Millichap is pleased to offer for sale the fee simple interest in a freestanding, single-tenant medical office occupied by Fresenius Medical Care (the “Asset”) located in Saint Paul, Minnesota. Fresenius Medical Care is the world’s leading provider of products and services for individuals with chronic kidney failure, serving more than 345,000 patients through a network of over 4,000 dialysis clinics worldwide. Fresenius Medical Care is publicly traded (NYSE: FMS; FRA: FRE) and carries investment grade credit (S&P BBB), with a market capitalization of approximately $20 billion.
The Asset serves as a critical care facility for Fresenius, offering life-sustaining dialysis treatment to patients in the greater Saint Paul area. Constructed in 2019 as a purpose-built facility for Fresenius, the property was designed to meet the company’s specific operational and technical requirements. Fresenius signed a 15-year lease in 2018, and today their are eight years of firm term remaining. The lease features a triple net structure, requiring minimal landlord responsibilities, and provides for 1.5% annual rental increases, ensuring consistent income growth throughout the remaining term.
Investment Highlights
- Purpose built single-story medical office constructed in 2019
- In-place lease with Fresenius has over 8 years of firm term remaining with 1.5% annual rent increases
- Well located at a signalized intersection within one mile from downtown St. Paul with a 361,543 population within a 5 mile trade area
- Designated parking lot for Fresenius customers and its employees
- Fresenius Medical Care, the guarantor of the lease, is publicly traded on the NYSE and holds investment grade credit
- The kidney care industry is a large and growing global market, driven by the prevalence of chronic kidney disease and end-stage renal disease. The U.S. dialysis services market was valued at around $27 billion and is expected to reach $44 billion by 2032
- Vacant 700 SF retail suite provides the opportunity for additional income in the future through lease-up
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