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Interra Realty Brokers $2.9 Million Sale of DaVita Dialysis Clinic in Whiting, Ind.

August 23, 2019

Interra Realty, a Chicago-based commercial real estate investment services firm, today announced it has brokered the $2.9 million sale of a 5,891-square-foot DaVita Dialysis Clinic at 816 119th St. in Whiting, Ind. The single-tenant net-leased property, which was completed last year, is in the first year of a 15-year lease and was purchased through a 1031 exchange.

“We continue to see strong demand for net-leased medical facilities, especially those that have long-term leases in place with creditworthy tenants like DaVita,” said Colin O’Malley, director at Interra Realty. “It also shows how some owners are using like-kind exchanges to pivot from management-intensive assets, such as an apartment community, to more passive investments that offer steady, predictable returns.”

O’Malley represented the buyer, Talcott Terrace LLC, in the sale, ensuring the transaction met all 1031 eligibility requirements. The seller was Dayton Street Partners, represented by Boulder Group.

“With the need for dialysis services expected to grow in the coming years, centers like this are considered strong investments that are more internet- and recession-resistant than net-leased retail,” O’Malley added.

DaVita is a Fortune 500 company and one of the largest kidney care companies in the United States. The property has a corporate guaranteed lease featuring 10% rental escalations every five years in the primary term and in each of the three five-year renewal option periods.

Built in 2018, the property is located about 18 miles south of downtown Chicago, close to the Illinois-Indiana border.

About Interra Realty:

Founded in 2010, Interra Realty is a Chicago-based commercial real-estate investment services firm that delivers integrated, tailored solutions through its boutique, client-focused approach and team of experienced professionals. Since its inception, the firm has closed thousands of transactions valued in excess of $1 billion spanning the multifamily, office and retail sectors, as well as loan sales. Interra’s clients range from private investors and high-net-worth individuals to large financial institutions, private equity groups and hedge funds. For more information, visit www.interrarealty.com.

 

Interra Realty brokered the $2.9 million sale of a DaVita Dialysis Clinic at 816 119th St. in Whiting, Ind.