For Sale
$2,097,000 | 6.50% Cap
805 Old Mill Street, Tuscaloosa, AL 35401
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Broker of Record: Harrison Warr | In-State Broker | AL License #: 000178615-0
| Facility Type | Building Area (SF) | Years Remaining | Net Operating Income |
|---|---|---|---|
| Single Tenant | 7,416 Square Feet |
10 Years | $136,282 |
Investment Highlights
Early 10-Year Lease Extension
Operating at the location since 2007, DaVita Dialysis recently reaffirmed its commitment to the site by executing an early 10-year lease extension, renewing five years before the original 2031 expiration.
Built-In Rent Growth
DaVita's rent increases by 8.83% in 2031, followed by 10% increases scheduled at the start of each option period, compounding income growth and reducing inflation risk.
Recent Capital Improvements
DaVita completed significant property upgrades in 2025, including full parking lot repaving and restriping at the tenant’s expense, demonstrating continued investment in the facility.
Certificate of Need State
Alabama is 1 of 11 states that impose Certificate of Need regulations governing dialysis treatment. State approval is required to build, relocate or expand a dialysis center, creating a meaningful regulatory barrier to new competition.
Proximity to The University of Alabama
The subject property benefits from one of the region’s largest education and employment centers while serving approximately 106,000 residents within a three-mile radius. The combination of institutional activity, population density, and diverse employment drivers supports recurring demand for essential outpatient healthcare services.
High-Volume Clinic
Operating six days per week from 4:30 a.m. to 8:00 p.m. on Monday, Wednesday, and Friday, and from 4:30 a.m. to 5:00 p.m. on Tuesday, Thursday, and Saturday, the clinic accommodates multiple shifts each day, underscoring strong utilization and reinforcing the property's role as an established provider of essential dialysis services.
| Facility Type | Building Area (SF) | Years Remaining | Net Operating Income |
|---|---|---|---|
| Single Tenant | 7,416 Square Feet |
10 Years | $136,282 |
Overview
Peranich Huffman Net Lease Group is pleased to exclusively present DaVita Dialysis, located at 805 Old Mill Street, Tuscaloosa, AL. The offering provides investors the opportunity to acquire a single-tenant medical property occupied by a nationally recognized kidney care provider. The 7,416 SF dialysis facility is located near The University of Alabama and serves an established trade area with 106,000+ residents within a three-mile radius, supporting recurring demand for essential outpatient healthcare services throughout the community.
Lease
The property is leased to DVA Healthcare Renal Care, Inc. under a net lease recently extended through September 30, 2036. Annual base rent is $136,282 ($18.38/SF), with an 8.83% increase in 2031. Three additional five-year renewal options remain, each featuring a 10% rent increase. The tenant pays taxes, insurance, utilities, landscaping, waste management, parking lot, and interior expenses, further limiting ownership obligations.
Tenant
DaVita Inc. (NYSE: DVA; S&P: BB Stable) is a Fortune 500 kidney care leader. DaVita operates more than 3,000 U.S. outpatient dialysis centers nationwide, serves approximately 248,000 patients annually, employs over 70,000 people, and reported 2025 revenue of $13.3 billion and net income of $772 million.