A two-tenant medical building has hit the market in Olympia. The property boasts full occupancy and long-term leases from two entities affiliated with Fresenius Medical Care Holdings. The asking price is $15.4 million, or approximately $990 per square foot, according to a marketing brochure from SRS National Net Lease Group in collaboration with Sherry Capital Advisors LLC, which has the listing. SRS’ Matthew Mousavi, Patrick R. Luther and Stephen Sullivan and Sherry Capital’s Michael A. Sherry are the listing agents for the property.
The property is located at 3406 12th Ave NE, on about two acres just off Lilly Road Southeast, which is a major retail thoroughfare with a daily traffic volume of more than 23,000 vehicles, according to the brochure. The property has nearby ramp access to Interstate 5, which sees approximately 146,000 vehicles per day. Also in proximity is the Providence St. Peter Hospital as well as a number of businesses. Within walking distance is the 656,000 square foot South Sound Center, which houses tenants such as Target, Kohl’s, Marshalls, Rite Aid and Petsmart. Other businesses in the area include Home Depot, Lowe’s, Albertsons, Ross, Hobby Lobby, Tractor Supply, Safeway and Burlington.
With the building comprising a total of 15,500 square feet divided into two suites, according to the brochure, a medical clinic occupies 11,170 square feet while office space utilizes the remaining 4,330 square feet. The property was constructed in 2018 and is currently 100 percent occupied by Renal Care Group Northwest, Inc., and Fresenius Management Services, Inc. Both tenants have approximately 11 years remaining in their initial lease terms, with three five-year options to extend. The leases feature annual rent increases of 1.7 percent throughout the initial terms. Additionally, at the beginning of each option period, the rent increase is equal to the lesser of fair market value or 10 percent.
Fresenius Medical Care Holdings is a global leader in renal disease treatment, according to the brochure, and a leading provider of dialysis care and products. It serves around 3.8 million patients worldwide and operates more than 4,116 dialysis clinics. Along with the core business, the company focuses on expanding the range of related medical services in the field of care coordination. The company was founded in 1912 and is headquartered in Bad Homburg, Germany.
