For Sale
$2,338,000 | 9.00% Cap
1850 Parkland Dr, Cullman, AL 35058
New OM Download
Broker of Record: Harrison Warr | In-State Broker | AL License #: 000178615-0
| Facility Type | Building Area (SF) | Years Remaining | Net Operating Income |
|---|---|---|---|
| Single Tenant | 9,001 Square Feet |
5+ Years | $335,979 |
Investment Highlights
Value-Add Positioning
Secured under a lease with Fresenius' corporate parent until December 2033, the unoccupied property guarantees $1.5 million of total net operating income over the next 7 years despite its current vacancy. This arrangement presents a unique investment opportunity by ensuring stable cash flow while offering significant value-add potential. Investors have the flexibility to strategize on re-leasing or negotiating an early lease termination, thereby enhancing the property's value further.
Located on Hospital Campus
The subject property is positioned on the campus of Cullman Regional Medical Center, a 175-bed hospital with a 24/7 emergency department. The hospital's recent $30 million expansion, which added a four-story bed tower, signals ongoing growth in regional patient demand. For an investor, the on-campus setting strengthens the asset's repositioning potential by drawing from a defined pool of healthcare-related tenants.
Minimal Landlord Responsibilities
The tenant is financially responsible for expenses related to HVAC repair, interior/non-structural portions of the building, property taxes, insurance premiums, landscaping, utilities and waste management. Expenses related to the replacement of the HVAC (over $2,500) and parking lot are amortized over useful life and reimbursed by tenant through the remainder of the lease term.
Corporately Guaranteed Lease
The lease is corporately guaranteed by Fresenius' parent company, Fresenius Medical Care Holdings, Inc. (S&P: "BBB- Stable"), the U.S. operating arm of the world's largest dialysis services provider.
Annual Rent Escalations
The Fresenius Medical Care lease features fixed 1.70% rent escalations occurring annually throughout the remaining 7+ years of lease term.
| Facility Type | Building Area (SF) | Years Remaining | Net Operating Income |
|---|---|---|---|
| Single Tenant | 9,001 Square Feet |
5+ Years | $335,979 |
Overview
Peranich Huffman Net Lease Group is pleased to exclusively present for sale the Fresenius Medical Care (Dark) located in Cullman, AL. Built in 2018, the 5,574 SF former dialysis clinic sits on a 2.00-acre parcel and is currently unoccupied. The lessee, Fresenius Medical Care, continues to pay rent and has fulfilled all obligations of the 15-year lease since commencement in December 2018.
The property is positioned on the campus of Cullman Regional Medical Center, a 175-bed hospital with a 24/7 emergency department. The location supports continued medical use and provides a defined tenant pool should the space be brought to market.
Lease
The subject property is leased to Fresenius Medical Care under a net lease structure that limits landlord expense exposure to the structure, roof, and parking lot repair. With base rent increasing by 1.70% annually, an investor benefits from over seven years of compounding cash flow while retaining the option to reposition the asset by obtaining an early lease buyout and reletting.
The lease is corporately guaranteed by Fresenius Medical Care Holdings, Inc. (S&P: "BBB- Stable"), the U.S. operating arm of the world's largest dialysis services provider. Fresenius operates 3,600 outpatient clinics worldwide, including 2,600 in the United States. The company treats 292,000 dialysis patients annually, employs 110,000, and reported FY 2025 revenue of approximately $21 billion.