Overview
Graystone Capital Advisors is pleased to present an exceptional investment opportunity at
601 East Lancaster Avenue, Reading, PA. This 10,800 square-foot, single-tenant medical
office property is 100% leased with lease payments guaranteed by The Smilist DSO, LLC—
a respected dental services organization and a dominant operator in the Northeast. The location was converted to a dental office in 2008, offering nearly 20 years of operational success. The facility currently has 11 chairs, with expansion capacity to 15.
Offered at a list price of $1,578,000, the property delivers an attractive 7.42% cap rate and
price per square foot of $146.11, providing immediate yield and long-term value for
investors seeking resilient healthcare cash flow. The lease features six years remaining on a
modified net lease basis, with annual rent escalations of 2% and two (2), five-year renewal
options, ensuring ongoing income growth and operational stability. The lease rate at
$1.01/SF/Month is highly defensible, below market, and offers future upside in rental income and
leverage during future renewal negotiations.
Positioned along East Lancaster Avenue in Reading’s core commercial corridor, the property
offers prominent visibility and easy access to a dense residential population and employment
base. As a medical office asset, it benefits from the healthcare sector's consistent demand
and resilience to economic cycles, resulting in high tenant retention and compelling income
certainty for investors.
Investment Highlights
Established Medical Tenant
Leased to a general dentistry provider operating under the well-established brand, the Smilist, the tenant operates in a highly stable sector with consistent demand. The Smilist Dental, one of the fastest-growing dental operators in the Northeast with over 100 locations achieving 50% revenue growth in 2024.
Stable Income Stream
Current lease runs through April 2031, with strong potential for renewal, ensuring predictable rental income and minimizing the risk of vacancy or turnover.
Prime Medical Office Location
Positioned along the high-visibility East Lancaster Avenue corridor, benefiting from strong daily traffic counts, easy ingress/egress, and convenient access for patients and staff.
Proximity to Dense Population Base
Located in Reading, PA, proximate to 6 schools and a thriving university, within a thriving, densely populated trade area that offers direct access to regional healthcare networks, suppliers, and a steady flow of customers.
Attractive Investment Fundamentals
Supported by solid real estate fundamentals and below market rents of $1.01 /Sf/MO, this medical office asset benefits from the sector’s historically resilient performance, even during economic downturns.
Stable and Growing Industry
The U.S. dental services market is expected to grow at a Compound Annual Growth Rate (CAGR) of over 5% in the coming years, driven by factors such as an aging population, increasing awareness of oral health, and the rising popularity of cosmetic and aesthetic procedures.
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