Stable Investment: There are ±6 years remaining on the NNN Michigan leases with 2% annual increases and two, five-year options to extend the lease. The Wisconsin asset includes more than two years remaining with 3.5% annual increases and one, five-year renewal option. These leases provide predictable income and steady growth within the Detroit and Milwaukee MSAs.
Scheduled Rental Increases I Hedge Against Inflation: The leases feature annual rental escalators (2% to 3.5%), providing a future owner with a boost in cash flow and a hedge against inflation throughout the life of their investment.
Healthcare Real Estate I Recession Resistant Property: Veterinary Hospitals are extremely sought-after investments for their resistance to downturns in the economy and e-commerce trends that affect traditional retail properties.
Tenant Investment In Location: Pet Hospitals rarely relocate due to the difficulty of retaining the same patients in a new location and the high costs associated with moving and build-outs.
Very Passive Lease Structure: There are minimal landlord responsibilities throughout the lease term, offering a passive investment for both local and national investors.
Robust Growth Industry: The global veterinary services market size is expected to reach $142 Billion by 2025, with a CAGR of 5.6% during that period.