For Sale
$3,030,000 | 6.50% Cap
3943 New Bern Ave, Raleigh, NC 27610
Thank you. The Offering Memorandum is now accessible.
Oops, there was an error. Please try again later.
Broker of Record: Brian Brockman | Bang Realty-North Carolina Inc. | NC License #: 298998
Investment Highlights
Strong Operational Performance
Occupying the subject property for nearly 20 years, Fresenius Medical Care operates 43 dialysis stations 6 days a week, serving as a critical healthcare provider for the local Raleigh community.
Recent 10-Year Lease Extension
The lease was recently extended 10 years through August 2034, ensuring investors with nearly a decade of predictable cash flow. Two (2) renewal options remain, each at 110% of the prior rent.
Certificate of Need (CON) State
North Carolina is one of only 12 states with Certificate of Need (CON) laws restricting new dialysis facilities. This regulatory environment protects existing operators and creates high barriers to entry.
Corporately Guaranteed Lease
The lease is backed by Fresenius Medical Care Holdings, Inc., the nation’s largest dialysis provider with global operations serving more than 350,000 patients. The corporate guaranty provides stable, credit-backed security.
Low Price & Rent Per Square Foot
With a rental rate of $10.89 per square foot and a competitive acquisition price of $167.40 per square foot, the offering provides significant value relative to replacement cost and market comparables.
| Facility Type | Building Area (SF) | Years Remaining | Net Operating Income |
|---|---|---|---|
| Condominium | 18,100 Square Feet |
9 Years | $197,109 |
Overview
Peranich Huffman Net Lease Group is pleased to exclusively present Fresenius Medical Care, located at 3943 New Bern Avenue, Raleigh, NC. This offering provides investors the opportunity to acquire a corporately guaranteed, healthcare-anchored asset in a high-demand medical corridor. The ±18,100 SF dialysis facility is positioned in a densely populated submarket of Raleigh, benefiting from excellent visibility and accessibility along New Bern Ave. As North Carolina is a Certificate of Need (CON) state, dialysis providers operate under strict regulatory protections that limit new competition, reinforcing tenant stability and long-term viability.
Lease
Fresenius Medical Care operates under a long-term lease that was most recently extended through August 31, 2034. The lease features a corporately guaranteed structure with annual base rent of $197,109 ($10.89/SF) through August 2034. Two (2) additional renewal options remain, each set at 110% of the preceding term’s rent. The lease is structured as a condo interest within Beacon Plaza, with Fresenius responsible for its proportionate share of common area expenses per the condominium association’s terms.
Tenant
Fresenius Medical Care Holdings, Inc. (S&P: “BB+”) serves as the guarantor for Bio-Medical Applications of North Carolina, Inc. Fresenius is the largest provider of kidney dialysis services in the U.S., operating 2,500+ clinics nationwide and serving over 200,000 patients annually. The company reported FY 2023 revenue of $20B+ and employs more than 120,000 people worldwide. Fresenius’ scale, medical expertise, and entrenched patient demand provide durable credit strength and income stability for investors.