For Sale
$2,251,000 | 7.50% Cap
962 Norfolk Square, Norfolk, VA 23502
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Broker of Record: Brian Brockman | Bang Realty, Inc | VA License #: 225245999
Investment Highlights
Strong Demographics
The subject property is positioned within a robust market area featuring a population of 425,000+ residents within a 5-mile radius, providing both DaVita Dialysis and Safari Dance Studio with access to a substantial customer base. This dense population concentration supports sustained demand for both essential healthcare services and community-focused businesses.
Dual-Sector Diversification
The two-tenant property features a pairing of DaVita Dialysis and Safari Dance Studio, combining the corporate stability and creditworthiness of a Fortune 500 national healthcare provider with the community-rooted market presence of an established local performance arts business.
Rent Escalations
The DaVita Dialysis lease provides for an average of 1.66% annual rent escalations throughout the remainder of the lease term. Additionally, DaVita's (3) 5-year renewal options are accompanied by 2% annual rent escalations.
Tenant History
DaVita Dialysis has occupied the subject property for 27 years, reflecting a long-standing commitment to serving the Norfolk community. This proven operating history underscores the tenant’s stability and long-term performance.
Early Lease Extension
Demonstrating a commitment to the location, DaVita Dialysis executed an early 7-year lease extension in 2025, which commences in 2028. As a result of this extension, DaVita has over 10 years of lease term remaining.
| Facility Type | Building Area (SF) | Years Remaining | Net Operating Income |
|---|---|---|---|
| Single Tenant | 20,672 Square Feet |
10+ Years (DaVita) | $168,852 |
Investment Overview
Peranich Huffman Net lease Group is pleased to exclusively present for sale, the DaVita Dialysis & Safari Dance Studio located in Norfolk, VA. Priced at a 7.50% capitalization rate, the offering provides investors with an opportunity to acquire a mixed-use asset occupied by a national healthcare tenant and local performance arts studio. Located at 962 Norfolk Square in Norfolk, VA, the facility features two suites positioned on a 1.7-acre parcel with 115 parking spaces. The 20,672 square-foot facility is 100% occupied with 8.4 years of weighted average lease term remaining.
The subject property benefits from the operational stability and creditworthiness of DaVita, the nation's leading dialysis provider serving over 200,000 patients nationwide, with Safari Dance Studio, a well-established local tenant deeply rooted in Norfolk's arts community. This strategic mix of national healthcare stability and local community engagement creates a balanced risk profile that capitalizes on both corporate reliability and grassroots market demand.
Leases & Tenants
DaVita Dialysis has 10.2 years of lease term remaining, resulting from the early 7-year lease extension that was executed in 2025. The 13,672 square-foot Suite 100 has been occupied by DaVita for 27 years, and generates $184,917 in annual base rent ($13.53/PSF). Rental rates increase by an average 1.66% annually for the remainder of the term, and 2% annually within the tenant's (3) 5-year option periods.
DaVita Dialysis is the largest dialysis provider in the United States, operating over 3,000 outpatient dialysis centers nationwide and serving more than 200,000 patients. As a Fortune 500 company with annual revenues exceeding $12 billion, DaVita provides exceptional tenant creditworthiness and operational stability in the essential healthcare services sector.
Safari Dance Studio has 1.3 years of lease term remaining. The tenant occupies Suite 200, consisting of 7,000 square feet, with an annual base rent of $48,000 ($6.86/PSF).
Safari Dance Studio is a well-established local performance arts business serving Norfolk's community with dance instruction and training programs. As a community-focused tenant, the studio maintains strong local market presence and benefits from deep neighborhood connections that foster customer loyalty and repeat business.