Newport Beach, CA (February 22, 2022) – SRS Real Estate Partners’ National Net Lease Group (NNLG) announced today it has completed the portfolio sale of eight single-tenant properties occupied by Fresenius Medical Care, valued at approximately $56.54 million. The properties which total more than 94,000 square feet are located in the states of Virginia, New York, Ohio, Texas, Georgia, and Missouri. The tenant had on average 10.5 years remaining on the original 15-year leases.
SRS NNLG’s Managing Principals Matthew Mousavi and Patrick Luther, and First Vice President Stephen Sullivan represented the seller, Kingsbarn Realty Capital. The buyer is undisclosed.
“This was a successful exit for the seller who has able return a healthy profit to their investors at the end of their scheduled hold period. Competition for net lease medical assets has increased significantly since the start of the pandemic. Institutional investors, in particular, have sharpened their pencils when underwriting assets that have proven to be unaffected by the pandemic or the acceleration of e-commerce thanks to Amazon,” said Sullivan, adding that the firm has seen more than 100 basis points of compression in cap rates for these types of assets in the last 12 months.
Mousavi, Luther and Sullivan have additionally closed or put under contract another 14 Fresenius properties since September 2021.
“The medical space within the net lease sector has experienced tremendous growth as this property type continues to appeal to a wider range of investors, said Mousavi. “We see this trend continuing due to continued demographic changes with an aging population, the appeal of medical as an e-commerce resistant product type, and the fact that these operators tend to be well capitalized with strong financial positions – allowing for a more efficient sale to the marketplace as well as the availability of attractive financing for investors.”
Fresenius Medical Care is the world’s largest provider of products and services for individuals with renal diseases of which around three million patients worldwide regularly undergo dialysis treatment. Fresenius Kidney Care dialysis centers are part of Fresenius Medical Care North America. Some centers may be known as Fresenius Kidney Care or Fresenius Medical Care, as well as other names.
In 2021, SRS’ Investment Properties Group and National Net Lease Group (NNLG) finished a record-breaking year, having completed 800 transactions valued in excess of $3 billion and currently has in excess of $2 billion in property on the market.