INVESTMENT HIGHLIGHTS

• Practice Acquired by Large, National Veterinary Operator – Heart + Paw, known for its strong performance, acquired the practice in August 2021.
• Long-Term, Passive Lease Structure – Approximately 7 years remaining on the initial lease term with 2 – 5-year option periods to extend, offering a stable, long-term investment for both local and national investors.
• Inflation-Protected Lease – The lease includes 40% rental increases every 6 years if revenue benchmarks are met during the initial term, and 2% annual increases throughout the option periods, providing a robust hedge against inflation.
• Below-Market Rent – The lease rate is below current market rates, enhancing potential returns while providing a safeguard against market volatility and rising costs, ensuring more stable and predictable cash flow.
• Proximity to Historic Downtown Warren – Located just a short distance from the historic downtown area, known for its charming shops, restaurants, and cultural attractions, which adds to the property’s appeal and attracts foot traffic.
• Easy Access to Surrounding Markets – Conveniently accessible via major roads and highways, including Route 195, which sees over 50,000 vehicle trips per day.
• Dense and Affluent Demographics – The property serves a population of over 78,000 residents within a 5-mile radius, with an average income exceeding $174,000.
• Heart + Paw – Heart + Paw is recognized for its successful operations and strong financial performance, backed by Waud Capital Partners, ensuring a well-capitalized and stable tenant. With over 60 locations nationwide, Heart + Paw was acquired by Vetcor in July 2023. This acquisition integrated Heart + Paw into Vetcor’s extensive network of over 750 veterinary practices, providing enhanced operational support, additional resources, and expanded market reach.
• Extremely Insulated to Economic Downturns – Pet care spending has increased during past economic downturns. Spending grew by 10% during the 2020 COVID-19 pandemic and by 17% during the 2008 recession, demonstrating the sector’s resilience and consistent demand through various economic cycles.