Fresenius Medical Care | Corporate Guaranty | Annual Rent Growth
Fitchburg, WI (Madison)
Price: $5,125,000Cap Rate: Building SF: 24,788 SFLot Size: 4.01 AcresYear Built: 1995 / Renovated 2003Status: Closed

Investment Highlights: 

Corporate Lease Guaranty – Investment Grade Credit Tenant – Annual Revenue of $20.68 Billion (2017) – The subject property is leased to Fresenius Medical Care, the the largest provider of renal care in the world, servicing over 325,000 renal patients in their global network of more than 3,800 dialysis clinics across 150 Countries. In 2017, Fresenius Medical Care generated revenues of more than $20.68 billion and currently holds S&P’s Investment Grade credit rating of “BBB-”.

3% Annual Rent Increases – 10-Year Lease Extension Reflects Commitment to Site  – Fresenius has operated at this location since 2015, at which time Fresenius exercised an early 10-year lease extension showing their commitment to the location. There are 6+ years remaining on the latest 10-year extension which features annual rent increases of 3%, offering an investor a stable investment with increasing income. Fresenius recently spent over $1,000,000 in capital for a full internal remodel of the building which included a full upgrade to all their dialysis process equipment.

Recent $1,000,000 Internal Remodel – Includes Full Upgrade to Dialysis Process Equipment – Fresenius recently spent over $1,000,000 in capital for a full internal remodel of the building which included a full upgrade to all their dialysis process equipment. These capital expenditures provide an investor comfort in that Fresenius is highly invested in this location and is planning to operate at this location for a long time to come.

Property Benefits From Medical Campus Type Setting – Adjacent to St. Mary’s Health Sleep Center – Shared Access/Parking Arrangement – The subject property has shared cross easement access and shared parking agreements in place with the adjacent parcel occupied by St. Mary’s Hospital Sleep Center. This creates an ideal medical campus environment that mutually benefits both Fresenius and the SMH Sleep Center.

Proximity to Fitchburg Technology Neighborhood – New 2,000-Acre Mixed Use Development – Home to Promega Corp & BioPharmaceutical Technology Center – The property’s strategic location is close to the Fitchburg Techology Neighborhood, a major new development with over 2,000 acres dedicated for high quality technology businesses in mixed-use commercial and residential settings connected by parks, open space and multi-modal transpiration, creating the ideal place for technology companies to call home. The neighborhood consists of three developments: Fitchburg Center, a 440-acre mixed-use community which is home to the global headquarters of Promega Corporation and the BioPharmaceutical Technology Center Institute (BTCI); Fitchburg Technology Campus, a 85 acre mixed-use development that is home to several technology based businesses, corporate headquarters, and residents, who are offered a wide variety of housing options; and Uptown Fitchburg, a live, work, play development with an emphasis on a walkable, bike friendly traditional neighborhood feel.

Located in the City of Fitchburg – Young, Dynamic Community Home to Fastest-Growing Tech Companies in Wisconsin – Minutes to Downtown Madison – The property is located in the growing city of Fitchburg, which is a desirable southwestern suburb just 4 miles from downtown Madison. The City of Fitchburg is a young, dynamic, and evolving community. Incorporated just 35 years ago, Fitchburg has successfully grown into a place known for attractive, family-oriented neighborhoods; a thriving technology-led business community; and well-designed, unique urban centers. Fitchburg has been strategic about its growth, focusing on first-rate design, preserving green spaces, and economic development geared toward 21st Century industries.
Fitchburg is home to several of the most advanced and fastest-growing technology companies in the state, the largest of which include Promega Corporation, Thermo Fisher Scientific, Placon Corporation, Sub-Zero/Wolf Appliance, OneNeckIT Data Center, and Saris Cycling. These companies are innovators and leaders in niche, growing industries.


Ryan Barr

rbarr@lee-associates.com
O. 760.448.2446
F. 760.929.9977

Ryan Bennett

rbennett@lee-associates.com
O. 760.448.2449
F. 760.929.9977