For Sale
$3,640,000 | 6.50% Cap
614 S Cannon Blvd, Kannapolis, NC 28083
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Broker of Record: Brian Brockman | Bang Realty-North Carolina Inc | NC License #: 298998
Investment Highlights
10% Rent Escalations
The current annual base rent of $215,098 is scheduled to increase to $236,608 in September 2025. In 2030, rent is scheduled to increase from $236,608 to $260,269. Additionally, each of DaVita's (3) 5-year renewal options contain 10% rent escalations upon commencement.
Certificate of Need (CON) State
There are 12 “Certificate of Need” states that impose regulations which govern the treatment of End Stage Renal Disease (ESRD). As a major benefit to the landlord, each of these 12 states, including North Carolina, place limitations on the development of new dialysis facilities creating a high barrier of entry for competition.
Corporately Guaranteed
The DaVita Dialysis lease is backed by a corporate guarantee from DaVita, Inc., a Fortune 500® company and the leading provider of kidney care in the United States.
Strong Population Density
The subject property is positioned in a densely populated area of North Carolina, with 72,000+ residents within a 3-mile radius, providing a robust customer base for DaVita.
Minimal Landlord Responsibilities
The tenant is responsible for operating expenses including the HVAC, parking lot, landscaping, insurance, taxes, and utilities, limiting landlord exposure to structural and roof repairs—creating predictable cash flows and minimal landlord capital requirements.
Recent Construction
Built in 2020, the property features modern infrastructure that significantly reduces near-term capital expenditure risk and maintenance costs.
| Facility Type | Building Area (SF) | Years Remaining | Net Operating Income |
|---|---|---|---|
| Single Tenant | 8,998 Square Feet |
10+ Years | $236,608 |
Investment Overview
Peranich Huffman Net Lease Group is pleased to exclusively present for sale, the DaVita Dialysis located in Kannapolis, NC. Priced at a 6.50% capitalization rate, this offering provides investors with the opportunity to acquire a property leased to a nationally recognized medical provider with an established track record of operational performance and kidney care excellence. Constructed in 2020, the 8,998 square-foot DaVita Dialysis facility is located at 614 S Cannon Blvd in Kannapolis on a 1.12-acre site, offering excellent visibility and accessibility. The property benefits from its positioning within the emerging North Carolina Research Campus medical corridor in Kannapolis, home to 100+ biotechnology companies and research facilities operated by major universities including UNC Chapel Hill, Duke University, and NC State University. The facility serves a population of 72,000+ within a 3-mile radius and is situated along the S Cannon Boulevard retail corridor. As North Carolina is a Certificate of Need (CON) state, dialysis facilities operate under regulatory protections that limit market entry and expansion, providing additional operational security for existing providers.
Lease
Executing a 15-year lease that commenced in August of 2020, DaVita Dialysis has 10+ years of primary lease term remaining with (3) 5-year renewal options. The current annual base rent of $215,098 is scheduled to increase to $236,608 in September 2025, representing one of multiple 10% escalations that occur every five years in the current term and renewal options. The lease is structured on a net basis, whereby the tenant bears financial responsibility for expenses including roof replacement, roof repair (up to $1,000/year), replacement and repair of the parking lot and HVAC, landscaping, interior/non-structural, insurance premiums, property taxes, utilities, and waste management. Replacements are reimbursed on amortized basis over useful life of the item based on GAAP. The landlord is responsible for expenses related to the structure, and roof repairs exceeding $1,000.
Tenant
DaVita Inc. (S&P: "BB"), a Fortune 500® company, serves as the corporate guarantor for DaVita Kidney Care, the nation's premier provider of kidney care services. DaVita Kidney Care operates and provides administrative services to over 3,100 outpatient dialysis centers throughout worldwide, delivering life-sustaining treatments to approximately 281,000 patients with chronic kidney failure and end-stage renal disease (ESRD). DaVita's substantial network reach, clinical expertise, and commitment to quality patient care has solidified the company's position as a leader in the kidney care sector amongst expanding demand for ESRD treatment.