INVESTMENT HIGHLIGHTS

PROPERTY/LEASE 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 two, 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 below-market rent creates a significant upside potential; as leases roll over or new tenants are secured, there is room to increase rents closer to current market rates.

LOCATION HIGHLIGHTS

• 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 ±77,319 residents within a 5-mile radius, with an average income exceeding $147,355.

TENANT HIGHLIGHTS

• 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 25 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.
• Robust Industry Growth: The global veterinary services market is projected to reach $142 billion by 2025, with a compound annual growth rate (CAGR) of 5.6% during that period.