Alliance Acquires Net-Leased Veterinary Portfolio in Cape Coral, Fla.September 17, 2021
Continued population growth, as well as pandemic-induced lifestyle changes, driving demand for veterinary services across Florida
Alliance Consolidated Group of Companies (Alliance) today announced it has acquired a two-building veterinary portfolio in Cape Coral, Fla., from a private seller. Pathway Vet Alliance, LLC will remain as the existing tenant in both properties.
Pathway Vet Alliance is part of a national veterinary hospital group consisting of over 300 facilities across the U.S. The organization acquired Kindness Animal Hospital in 2018, retaining the practice’s name and two existing locations: Kindness Animal Hospital West, a 5,500-square-foot facility located at 717 Cape Coral Parkway West, and Kindness Animal Hospital East, operating in 2,060 square feet at 1711 South East 47th Terrace.
indness Animal Hospital has been serving the Cape Coral community for over 30 years. The two locations offer a suite of unique veterinary services, including exotic and avian animal specialty, spaying/neutering, vaccinations, grooming, pet boarding, dentistry, laser/ultrasound procedures and emergency care.
According to data from the American Veterinary Medical Association, veterinary labor remains in demand, despite stresses brought on by COVID-19. When national unemployment skyrocketed to approximately 15% at the start of the pandemic in March 2020, veterinary figures fell to 0.7%. This demand, coupled with the 22% population growth that the Cape Coral-Fort Myers area saw between 2010 and 2018, were the main drivers that attracted Alliance to the deal.
“Net-lease real estate is greatly dependent on two things: positive population growth and quality, creditworthy tenants whose businesses are supported by the associated demand for services,” said Ben Reinberg, founder and CEO of Alliance. “This deal scores highly on both counts. We’re excited to continue our expansion into Florida with this incredible investment.”
While the labor shortage has been an intensifying, long-term trend for the veterinary industry, there are also short-term impacts on the demand for services. A COVID-19 Pulse Study by the American Pet Products Association found that, between the start of the pandemic in March 2020 and May 2021, roughly 12.6 million U.S. households added a new pet, with fewer numbers relinquishing their existing pets. This has put a strain on vet care that has yet to subside.
“We are a specialty- and credit-focused firm,” said Reinberg. “I’m looking forward to the value that this property, and our continued relationship with Pathway, will bring to our investment.”
Alliance, which targets the 50 largest MSAs around the country, has been investing in Florida for more than 10 years.
About Alliance Consolidated Group of Companies:
Alliance Consolidated Group of Companies is a real estate investment firm that specializes in net-leased medical buildings. Founded in 1995, the firm targets a variety of healthcare facilities around the country. Alliance delivers attractive, risk-adjusted returns by leveraging longstanding relationships with lenders, brokers and investors to identify the best opportunities in each market and facilitate a quick close. Additional value is created post-acquisition through professional property management services provided in-house. For more information, visit http://www.alliancecgc.com/.