Investment Grade Credit from DaVita (NYSE: DVA; S&P: BB)
– DaVita is a leading provider of dialysis treatment, ranking as one of the largest in the world. DaVita features a S&P Credit Rating of “BB”, a Moody’s Rating of “Ba3” with Annual Revenues in Excess of $12.14B and Ranked #341 on Fortune 500.
– As of 2024, DaVita serves patients at over 3,100 dialysis centers nationwide and in 13 countries outside of the U.S.
– Citizen’s Medical Center is a healthcare system headquartered in Victoria, TX with revenue exceeding $735M in 2023.
– Citizen’s operates 306 hospital beds, surgery centers, cancer centers, emergency services, imaging centers, rehabilitation and physical therapy, and urgent care to name several of their patient centered revenue streams.
Highly Trafficked Area w/ 36,000+ CPD in Primary Retail Thoroughfare
– The property is located less than a mile from Walmart, Lowe’s, Target, Sam’s Club Academy Sports + Outdoors, and sits adjacent to the Victoria Mall (678,996 Sq Ft)
– Victoria Mall is only enclosed mall within 100-mile radius and has no, for lease space available, with over 70 tenants occupying.
– The site benefits from a combined 36,000 CPD with 4 access points to the center.
Future Rental Upside – Average Rent/SF of $17.49
– DaVita is paying $13.50 per square foot in rent with firm lease term until 2031 with 2- 5 year option periods with 10% rental increases in each option.
– Citizen’s Medical just signed brand new 7-year lease in 2023 at $20 per square foot with annual 2% increases in the option periods.
– Property was recently renovated in 2021 and there is currently only a 3% retail vacancy in the market (Costar).
Located in Regional Hub in Business-Friendly State of Texas
– The subject property is a 2-hour drive or less from major Texas cities: Austin, Houston, San Antonio and Laredo.
– Critical location due to the presence of major economic drivers in the area such as Eagle Ford Shale, Victoria Express Pipeline, and Port of Victoria.
– Surrounded by major industrial/energy employers: Formosa Plastics, Inteplast Group, Dow Chemical, Invista, Caterpillar, Alcoa, etc.
– Victoria has a city population of over 65,000 people, and there are over 200,000 in the immediate region.
– Texas has the 8th largest economy in the world with a GDP of $2.6 trillion in 2023.
– Texas has no corporate income tax or personal income tax.
