Davita Dialysis Center 1559 7th St W 5,361 SF Office Building Saint Paul, MN 55102 $2,150,000 ($401.04/SF) 7.54% Cap Rate
INVESTMENT HIGHLIGHTS
- 1559 7th St W is a rare chance to purchase a 5,361 SF prime single-story medical building that is home to the DaVita Dialysis Center.
- DaVita is the leading kidney care provider in the US, with 37% of the market share and over 200,000 dialysis patients.
- The tenant is responsible for all costs associated with the property and has four years remaining in the term and three five-year options to renew.
- Visitors and tenants appreciate the convenient accessibility to Interstates 33E and 94, and the Minneapolis-St. Paul International Airport.
- Just outside of Downtown Minneapolis and St. Paul, offering quick access to the area's amenities and the Universities of Minnesota and St. Thomas.
- The Twin Cities are often recognized as one of the highest-quality places to live in the nation for safety, sustainability, charity, and art.
EXECUTIVE SUMMARY
1559 7th Street W is an excellent investment opportunity to purchase a single-story, 5,361-square-foot office asset fully occupied by a Standard & Poor’s Investment Grade (S&P: BB) tenant in Saint Paul, Minnesota. The existing tenant, DaVita, Inc., is responsible for all costs associated with the property through an absolute net lease. The lease has four years remaining, with three five-year renewal options and 2% rent escalations.
DaVita Inc. provides kidney dialysis services through a network of 2,816 outpatient centers in the United States that serve approximately 204,200 patients and 321 outpatient dialysis centers in 10 other countries that serve 3,200 patients. Davita has a 37% market share in the US dialysis market. It is organized in Delaware, based in Denver, and ranked 271 on the Fortune 500 list.
The property sits on 0.44 acres and has building signage on the corner of Highway 5 and Rogers Street, which is traveled by 13,773 vehicles daily. 1559 7th Street is less than five minutes from the Interstate 35E interchange, connecting to St. Paul and into the greater Minneapolis are. The Minneapolis-St. Paul International Airport, an award-winning international hub for all who travel, lies 4 miles from the complex. Many shopping, dining, and entertainment amenities are within one mile of the property at the West Seventh-Fort Road area, the Summit Hill Neighborhood, and along Interstate 35E.
Minneapolis and St. Paul, often regarded as the Twin Cities, are located 10 minutes away from 1559 7th Street W and consistently ranked as one of the world's best places to live, work, and play. The Twin Cities are home to many professional sports teams and venues, including US Bank Stadium, home to the Vikings (NFL), Target Center, home to the Timberwolves (NBA) and the Lynx (WNBA), as well as the Twins (MLB) who play at neighboring Target Field, all in Minneapolis. The Wild (NHL) play at Xcel Energy Center, and the MNUFC Loons (MLS) play at Allianz Field in St. Paul. The surrounding area is well-educated due to the access to the University of Minnesota and the University of St. Thomas. Within a 3-mile radius of the property, 51% of residents have a college degree and higher, and 32% have a bachelor’s degree.
DaVita Inc. provides kidney dialysis services through a network of 2,816 outpatient centers in the United States that serve approximately 204,200 patients and 321 outpatient dialysis centers in 10 other countries that serve 3,200 patients. Davita has a 37% market share in the US dialysis market. It is organized in Delaware, based in Denver, and ranked 271 on the Fortune 500 list.
The property sits on 0.44 acres and has building signage on the corner of Highway 5 and Rogers Street, which is traveled by 13,773 vehicles daily. 1559 7th Street is less than five minutes from the Interstate 35E interchange, connecting to St. Paul and into the greater Minneapolis are. The Minneapolis-St. Paul International Airport, an award-winning international hub for all who travel, lies 4 miles from the complex. Many shopping, dining, and entertainment amenities are within one mile of the property at the West Seventh-Fort Road area, the Summit Hill Neighborhood, and along Interstate 35E.
Minneapolis and St. Paul, often regarded as the Twin Cities, are located 10 minutes away from 1559 7th Street W and consistently ranked as one of the world's best places to live, work, and play. The Twin Cities are home to many professional sports teams and venues, including US Bank Stadium, home to the Vikings (NFL), Target Center, home to the Timberwolves (NBA) and the Lynx (WNBA), as well as the Twins (MLB) who play at neighboring Target Field, all in Minneapolis. The Wild (NHL) play at Xcel Energy Center, and the MNUFC Loons (MLS) play at Allianz Field in St. Paul. The surrounding area is well-educated due to the access to the University of Minnesota and the University of St. Thomas. Within a 3-mile radius of the property, 51% of residents have a college degree and higher, and 32% have a bachelor’s degree.
SALE FLYER
PROPERTY FACTS
Sale Type
Investment NNN
Property Type
Office
Property Subtype
Medical
Building Size
5,361 SF
Building Class
B
Year Built
2007
Price
$2,150,000
Price Per SF
$401.04
Cap Rate
7.54%
NOI
$162,212
Tenancy
Single
Building Height
1 Story
Typical Floor Size
5,361 SF
Building FAR
0.28
Lot Size
0.44 AC
Zoning
OS - Office-Service
Parking
21 Spaces (3.92 Spaces per 1,000 SF Leased)
AMENITIES
- Bus Line
- Signage
MAJOR TENANTS
- TENANT
- INDUSTRY
- SF OCCUPIED
- RENT/SF
- LEASE TYPE
- LEASE END
-
- Health Care and Social Assistance
- -
- -
- Triple Net
- Apr 2028
At DaVita, they are driven to deliver differential, equitable and holistic care to their patients throughout their entire kidney disease journey. DaVita is guided by its Mission—to become the provider, partner and employer of choice—and a set of Core Values—Service Excellence, Integrity, Team, Continuous Improvement, Accountability, Fulfillment and Fun—which are reinforced at all levels of the organization. They are committed to strong corporate governance policies and practices, as well as compliance with federal and state laws.
| TENANT | INDUSTRY | SF OCCUPIED | RENT/SF | LEASE TYPE | LEASE END | |
|
|
Health Care and Social Assistance | - | - | Triple Net | Apr 2028 |
Walk Score®
Very Walkable (71)
Bike Score®
Very Bikeable (78)
DEMOGRAPHICS
Demographics
1 Mile
3 Mile
5 Mile
2020 Population
10,851
135,050
308,904
2024 Population
10,189
132,834
302,793
Population Growth '20-'24
-6.1%
-1.6%
-2.0%
2020 Households
4,981
57,928
131,149
2024 Households
4,651
56,977
128,952
Household Growth '20-'24
-6.6%
-1.6%
-1.7%
Average Age
42
40
39
Median Household Income
$77,351
$74,397
$71,354
Daytime Employees
4,921
74,443
223,491
Total Businesses
454
7,379
18,945
College Degree + Higher
53%
51%
46%
NEARBY AMENITIES
HOSPITALS |
|||
|---|---|---|---|
| Allina United Hospital | Acute Care | 5 min drive | 2.7 mi |
| St. Joseph's Hospital | Acute Care | 6 min drive | 3.6 mi |
| Regions Hospital | Acute Care | 7 min drive | 4.4 mi |
| Gillette Children's Specialty Hospital | Children's | 7 min drive | 4.6 mi |
| University of Minnesota Medical Center, Fairview | Acute Care | 13 min drive | 7.4 mi |
RESTAURANTS |
|||
|---|---|---|---|
| First Avenue | - | - | 8 min walk |
| Rooster's BBQ Deli & Catering | Barbecue | $ | 13 min walk |
| Mojo Monkey Donuts | Donuts | $ | 13 min walk |
| Famous Dave's | American | $$$ | 14 min walk |
| Golden Chow Mein | Chinese | $ | 15 min walk |
| Mickey's By Willy | Diner | $ | 15 min walk |
| Hot City Pizza | Pizza | $ | 18 min walk |
RETAIL |
||
|---|---|---|
| Speedway | Convenience Market | 4 min walk |
| United States Postal Service | Business/Copy/Postal Services | 6 min walk |
| Anytime Fitness | Fitness | 13 min walk |
| Trader Joe's | Supermarket | 17 min walk |
HOTELS |
|
|---|---|
| Courtyard |
120 rooms
7 min drive
|
| Hyatt Place |
149 rooms
6 min drive
|
| SpringHill Suites |
185 rooms
7 min drive
|
PROPERTY TAXES
| Parcel Number | 14-28-23-22-0161 | Improvements Assessment | $1,790,300 |
| Land Assessment | $281,000 | Total Assessment | $2,071,300 |
