Recently Executed 7-Year Lease Extension

The tenant’s commitment through a new 7-year term underscores the facility’s mission critical importance and ensures durable cash flow. Additionally, the lease includes (2) 5-year renewal options.

Proximity To Unity Hospital

The subject property benefits from immediate proximity to Unity Medical Center, a general acute care hospital located less than a quarter mile away on Interstate Drive. This positioning establishes a built-in referral pipeline, as hospital physicians routinely identify and refer patients requiring ongoing dialysis services to nearby treatment centers.

Non-Income Tax State

Serving as a major benefit to the landlord, as of 2025, nine states: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming — levy no state income tax.

Annual Rent Escalations

The lease features 2.25% annual rent escalations occurring each April throughout the remainder of the current 7-year term. These built-in increases offer a hedge against inflation while enhancing the property’s yield over the hold period.

Reduced Landlord Capex Exposure

Lease structure requires the tenant to fund the first $7,500 of any HVAC or roof repair per incident, with landlord exposure limited to costs above that threshold, supporting more predictable long-term cash flow.

New Roof Installed in 2025

The recently installed roof significantly reduces the likelihood of near-term capital expenditure, minimizing potential landlord expense exposure.