fresenius medical care topeka · foot kidney dialysis clinic that is 100% leased to fresenius...

F R E S E N I U S M E D I C A L C A R E

Offering Memorandum

TOPEKA

TRAVIS TRAUTVETTERExecutive Managing Director

858 558 5609 | [email protected]

JAKE TRAUTVETTERCapital Markets


01. INVESTMENT 02. TENANT 03. FINANCIALS 04. MARKET

F R E S E N I U S M E D I C A L C A R ETOPEKA

3408 SE 29TH STREET . TOPEKA KANSAS 66605

Listed in conjunction with Kansas Broker of Record: Michael Mayer | Cushman & Wakefield U.S., Inc. | License No. SP00032293

MELISSA CARSONSenior Brokerage Coordinator


ROSCHELLE BULDASenior Marketing Specialist


All photos shown are of the actual property, not representation

0 1 . I N V E S T M E N T

FMC - TOPEKA . KANSAS 7CUSHMAN & WAKEFIELD6

The Topeka FMC Clinic is a single-tenant, build-to-suit, 5,220 square foot kidney dialysis clinic that is 100% leased to Fresenius Medical Care North America (FMC) on a new 15-year lease term, with rent commencement in October 2016.

The lease includes attractive 1.7% annual rent increases and is guaranteed by Fresenius Medical Care Holdings, Inc (FMCH) which has a net worth of $10.144 Billion. This facility is a new FMC branch in Topeka, Kansas and will provide best-in-class operations and customer service, housing 12 patient stations, 1 private station located in a separate room and additional space for 2 more stations.

The Topeka FMC Clinic features an excellent location in the Central Highland Park area of Topeka, with immediate proximity to the Interstate 470 and Interstate 70 freeways. The property is situated approximately four miles from Stormont Vail Health, a 586-bed acute care hospital, and is surrounded by prominent national retailers including Walgreens, Advance Auto Parts, McDonald’s, Walmart, Domino’s Pizza, Bank of America, Burger King, Ace Hardware, and Arby’s. Topeka is the capital city of Kansas, and has an estimated Metropolitan Statistical Area of 234,566.

2015 audited financials for FMCH reflect a net worth of $10.144 billion, with 2015 net income exceeding $883 million. FMCH is a wholly-owned subsidiary of Fresenius Medical Care AG & Co. KGaA, which is the world’s largest integrated provider of products and services for individuals undergoing dialysis because of chronic kidney failure, a condition that affects more than 1,890,000 individuals worldwide. The parent company is listed on both the Frankfurt Stock Exchange and the New York Stock Exchange (NYSE: FMS).

INVESTMENTOFFERING


NE W 1 5 -Y E A R L E A S E T E R M

1 .7 % A NNUA L R E N T IN C R E A S E SAttractive rent growth during the lease term

2 016 B UIL D -TO -S UI T C O N S T R U C T I O N

$ 10.14 4 NE T WO R T H L E A S E GUA R A N TO RFresenius Medical Care Holdings reported a 2015 net worth of $10.144 Billion

IMME D I AT E P R OX IMI T Y TO M A J O R H O S P I TA L Located approximately four miles from Stormont Vail Health, a 586-bed hospital

S UR R O UND E D BY M A J O R N AT I O N A L T E N A N T S Neighboring retailers include Walgreens, Advance Auto Parts, McDonald’s, Walmart, Domino’s Pizza, Bank of America, Burger King, Ace Hardware, and Arby’s

LO C AT E D IN C A P I TA L C I T Y Topeka is the capital of Kansas, and has an MSA of 234,566

INVESTMENTHIGHLIGHTS

3408 SE 29TH STREET TOPEKA, KANSAS

R E N TA B L E S F 5,220 Sq Ft

LOT S I Z E 1.03 Acres

Y E A R B U I LT 2016

OW N E R S H I P T Y P E Fee Simple

NEARBY CITIESK A N S AS C I T YW I C H I TAO M A H AD E S M O I N E SO K L A H O M A C I T YST. LO U I SDA L L AS

60 Miles

140 Miles

164 Miles

250 Miles

300 Miles

315 Miles

500 Miles


01 02 03 04

• Kansas Association of School Boards

• Kansas Corporation Commission

• Health Resource Center Department of Veterans Affairs

• Washburn Institute of Technology

• West Rigde Mall

f Sears f Dillard's f Sunglass Hut f Gap Outlet f Old Navy f Bath & Body Works

• Target

• Men's Wearhouse

• Hobby Lobby

• GameStop

• Regal Cinemas

• Menards

• Kohl 's

• Lowe's

• Barnes & Noble

• The Home Depot

• Walmart Supercenter

• Sam's Club

• Best Buy

• Kmart

• Michael 's

• Toys"R"Us

• T.J. Maxx

• Chuck E. Cheese's

• IHOP

• Chil i 's Gri l l & Bar

• Steak 'n Shake

• Panera Bread

• Cracker Barrel

• Denny's

• Jo-Ann Fabrics

• Starbucks

• Buffalo Wild Wings

• Olive Garden

• Days Inn Topeka

• Hampton Inn Topeka

• Fairf ield Inn Topeka

• US Army Reserve

• Frito-Lay

• Walmart Supercenter

• Bl ind Tiger

• Sonic Drive-In

• Walgreens

• Dollar Tree

• Pizza Hut

• KFC

• Denny's

• McDonald's

• NAPA Auto Parts

• Sherwin-Will iams

• Gordmans

• Vanderbi lt 's

• BMW Volkswagen of Topeka

• Briggs Subaru

• Briggs Dodge Ram

• John Hoffer Chrysler

• U.S. Bank

• Capital City Bank

• Kansas State Capitol Building

• Kansas Expocentre

• Topeka Performing Arts Center

• Brown v. Board of Education National Historic Site

• Historic Constitution Hall

• Commission on Veterans Affairs

• Chamber of Commerce

• Kansas Department of Labour

• Wildl ife & Parks Department

• Kansas Secretary of State

• Shawnee County Courthouse

• Shanee County Adult Detention

• Topeka Police Department

• Shawnee County Sheriff 's Office

• Topeka Fire Department

• Walmart

• Dil lons

• Genesis Health Clubs

• Autozone

• Walgreens

• Dollar General

• Advance Auto Parts

• Westlake Ace Hardware

• O'Reil ly Auto Parts

• Dollar Tree

• McDonald's

• Domino's Pizza

• Arby's

• Burger King

• Dairy Queen

• Pizza Hut

• Subway

• Capital City Bank

• Bank of America

AREA AMENITIESPhillip Billard

MunicipalAirport

Kansas River

Topeka VA Medical Center Kansas

Neurological Institute

1

2

Washburn University

Downtown Topeka

3

KANSAS TURNPIKE Lake

Sha

wne

e

SE 29TH STREET

Stormont Vail

Hospital

4

0 2 . T E N A N T


Fresenius Medical Care, a kidney dialysis company, provides dialysis care services related to the dialysis treatment a patient receives with end stage renal disease (ESRD); and other health care services.

It offers dialysis treatment, and related laboratory and diagnostic services through a network of 3,402 outpatient dialysis clinics in approximately 45 countries worldwide; materials, training, and patient support services comprising clinical monitoring, follow-up assistance, and arranging for delivery of the supplies to the patient’s residence; and dialysis services under contract to hospitals in the United States for the hospitalized ESRD patients and for patients suffering from acute kidney failure. The company also provides pharmacy services, such as delivery and supply of renal medications to patients at homes or to dialysis clinics directly; vascular, cardiovascular, and endovascular specialty services; and offers products for the treatment of ESRD.

In addition, it offers laboratory services that include blood, urine, and other bodily fluid testing services; and hemodialysis (HD) machines, modular components for dialysis machines, polysulfone dialyzers, bloodlines, HD solutions and concentrates, needles, connectors, machines for water treatment, data administration systems, dialysis chairs, phosphate binders,

iron products, and other renal drug products.

Further, the company provides peritoneal dialysis systems and solutions for continuous ambulatory peritoneal dialysis and automated peritoneal dialysis; and adsorbers, which are filters used in other extracorporeal therapies; and distributes specific instruments for vascular access, as well as other supplies, such as bandages, clamps, and injections.

The company sells its products to clinics, hospitals, and specialized treatment clinics through local sales forces, independent distributors, dealers, and sales agents. The company was founded in 1996 and is headquartered in Bad Homburg, Germany.

www.freseniusmedicalcare.us

$ 1 8 B I L L I O N2016 Annual Revenues

$ 2 5 .0 1 B I L L I O NMarket Cap

OWNERSHIPPublic

TICKER SYMBOLFMS (NYSE)

CREDIT RATINGBa3 (Moody’s)

# OF EMPLOYEES104,687

0 3 . F I N A N C I A L S


INVESTMENT SUMMARY

P R I C E $3,178,309

CA P R AT E 5.50%

T E N A N T FMC

L E AS E GUA R A N TO R FMCH, Inc.

GUA R A N TO R N E T WO R T H $10.144 Billion

L E AS E T Y P E NN

L E AS E T E R M 15 Years

L E AS E C O M M E N C E M E N T 10/22/2016

L E AS E E X P I R ATO N 10/31/2031

R E M A I N I N G L E AS E T E R M 14.75 Years

R E N E WA L O P T I O N S Three 5-Year Options

R E N T I N C R E AS E S 1.7% Annual

L A N D LO R D R E S P O N S I B I L I T I E S1. Roof & structure (Long-term roof warranty in place)

2. Parking lot replacement (Tenant responsible for repairs & maintenance)

3. HVAC repairs exceeding $2,500 (Manufacturer warranty in place)

RENT SCHEDULEP E R I O D A N N UA L BAS E R E N T M O N T H LY BAS E R E N TYear 1 $174,807 $14,567

2 $177,779 $14,8153 $180,801 $15,0674 $183,875 $15,3235 $187,000 $15,5836 $190,179 $15,8487 $193,412 $16,1188 $196,701 $16,3929 $200,044 $16,670

10 $203,445 $16,95411 $206,904 $17,24212 $210,421 $17,53513 $213,998 $17,83314 $217,636 $18,13615 $221,336 $18,445

Three 5-Year Lease Renewal Options, with 10% rent increases in each option period

0 4 . M A R K E T

CUSHMAN & WAKEFIELD24

Situated along the Kansas River, Topeka is the capital city of Kansas and the seat of Shawnee County. It is a family-friendly city with attractions and history from the Civil War to Civil Rights, with festivals and events throughout the year.

On Jan. 29, 1861, Kansas was admitted as the 34th state of the union, and Topeka was chosen as the state capital. Cyrus K. Holliday donated land for the construction of a new state capitol building, which was completed in 1903. After 13 years and a $332 million renovation, the Kansas State Capitol Building has been meticulously restored to its original glory. Touching every part of the Capitol, from two stories below the underground cornerstones to the top of the 306-foot dome, the renovation restored the original architect's vision while increasing accessibility and safety for years to come.

TOPEKA


DOWNTOWNIn December 2012, the Topeka City Council approved a multi-million dollar improvement project along South Kansas Avenue between 6th and 10th Avenues. The project has redesigned South Kansas Avenue to three lanes with a northbound, southbound and center turn lane. Medians, sidewalks and concrete curbs and gutters have been replaced. Sidewalk space has expanded, offering side paths and allowing businesses to offer patio seating and space for sidewalk sales. More than $2 million in private investments were contributed toward the amenities, pocket parks and aesthetics.

EDUCATIONTopeka is home to Washburn University, the top ranked public master's level university in Kansas according to the America's Best Colleges rankings released by U.S. News and World Report. The University has also been named one of the top 20 public institutions in the Midwest. Topeka also was home of the Oliver Brown family, the namesake in Brown v. Board of Education, the 1954 Supreme Court case that eliminated the "separate but equal" standard in American public schools. Unlike the elementary schools in Topeka at that time, Topeka High School had been integrated since the late 1890s.

GOOGLEOn March 1, 2010, Topeka Mayor Bill Bunten issued a proclamation calling for Topeka to be known for the month of March as "Google, Kansas, the capital city of fiber optics," in an effort to "re-brand" the city with a simple gesture. This was to help

"support continuing efforts to bring Google's fiber experiment" to Topeka, though it was not a legal name change. Subsequently, Google jokingly announced that it would change its name to Topeka to "honor that moving gesture" on April 1, 2010 (April Fools Day) and changed its home page to say Topeka. In its official blog, Google announced that this change thus affected all of its services as well as its culture, e.g. "Googlers" to "Topekans", "Project Virgle" to "Project Vireka", and proper usage of "Topeka" as an adjective and not a verb, to avoid the trademark becoming genericized.

ACCOLADESIn 2007, Forbes Magazine named Topeka as one of the leading U.S. cities in terms of having the greatest variations in temperature, precipitation, and wind. Additionally, Topeka was named one of the Top 10 Best Cities for the Next Decade by Kiplinger's Personal Finance Magazine in 2010 based on economic prosperity and potential growth. PT's Coffee, 2009 Roast Magazine's Roaster of the Year will be sold in Costco starting this year. And Topeka is home to the award-winning Blind Tiger Brewery and Restaurant, which serves up the 2012 World Beer Cup Gold Award winning Maibock beer. In the past 12 years, Blind Tiger has won 15 gold, silver or bronze medals at the Great American Beer Festival and the World Beer Cup, as known as the Olympics of Beer.


2016 3 Miles 5 Miles 7 MilesTotal Population 29,970 73,989 121,971

Total Households 10,767 28,970 50,314

Median Age 35.6 34.9 36.5

Median Household Income $46,044 $39,086 $45,184

Housing Units:

Total Housing Units 11,692 32,465 55,352

Occupied Housing Units 92.1% 89.2% 90.9%

Vacant Housing Units 7.9% 10.8% 9.1%

Household Income:

Income $0 - $9,999 7.9% 10.2% 8.0%

$10,000 - $14,999 6.7% 7.7% 6.3%

$15,000 - $24,999 12.4% 14.6% 13.2%

$25,000 - $34,999 12.3% 13.3% 12.7%

$35,000 - $49,999 14.2% 13.9% 13.9%

$50,000 - $74,999 20.6% 19.2% 20.9%

$75,000 - $99,999 11.7% 9.7% 11.4%

$100,000 - $124,999 7.2% 5.6% 6.7%

$125,000 - $149,999 3.1% 2.6% 2.9%

$150,000 + 3.9% 3.1% 3.9%

Average Household Income $58,298 $52,480 $59,058

Per Capita Income $21,368 $21,033 $24,773

2021 3 Miles 5 Miles 7 MilesTotal Population 30,287 74,079 122,344

Total Households 10,930 29,112 50,729

Median Age 36.2 35.4 37.0

Median Household Income $52,721 $45,132 $52,585

Housing Units:

Total Housing Units 11,874 32,678 55,911

Occupied Housing Units 92.1% 89.1% 90.7%

Vacant Housing Units 8.0% 10.9% 9.3%

Household Income:

Income $0 - $9,999 6.2% 8.0% 6.2%

$10,000 - $14,999 6.2% 7.3% 5.8%

$15,000 - $24,999 11.2% 13.3% 11.7%

$25,000 - $34,999 11.1% 12.3% 11.5%

$35,000 - $49,999 13.0% 13.0% 12.7%

$50,000 - $74,999 20.2% 19.2% 20.6%

$75,000 - $99,999 13.4% 11.6% 13.4%

$100,000 - $124,999 9.3% 7.4% 8.7%

$125,000 - $149,999 4.3% 3.6% 4.1%

$150,000 + 5.3% 4.3% 5.3%

Average Household Income $66,515 $60,206 $67,619

Per Capita Income $24,423 $24,144 $28,448

AREA DEMOGRAPHICS

WITHIN SEVEN MILES121,000+ RESIDENTS

POPULATION TREND 3 Miles 5 Miles 7 Miles2016 29,970 73,989 121,971

2021 30,287 74,079 122,344

2016 TO 2021 CHANGE 1.1% 0.1% 0.3%

HOUSEHOLD TREND2016 10,767 28,970 50,314

2021 10,930 29,112 50,729

2016 TO 2021 CHANGE 1.5% 0.5% 0.8%

*Report counts include D&B business location records that have a valid telephone, known SIC code and D&B ratingas well as exclude cottage industries (businesses that operate from a residence). © 2016 Easy Analytic Software, Inc. (EASI®) All Rights Reserved, Alteryx, Inc. © 2015 Experian Information Solutions, Inc. All Rights Reserved, Alteryx, Inc. © 2016 Experian Marketing Solutions, Inc. All Rights Reserved, Alteryx, Inc.

CUSHMAN & WAKEFIELD30

This Offering Memorandum is confidential and is furnished to prospective purchasers of the Property described herein subject to the terms of the Confidentiality Agreement previously provided to and executed by such prospective purchasers. This Memorandum is intended solely to assist prospective purchasers in their evaluation of the Property and their consideration of whether to purchase the Property. It is not to be used for any other purpose or made available to any other person without the prior written consent of the Seller of the Property.

This Memorandum was prepared on the basis of information available to the Seller and to Cushman & Wakefield, Inc., the Seller’s exclusive agent in connection with the sale of the Property. It contains pertinent information about the Property and the surrounding area but it does not contain all the information necessary for a complete evaluation of the Property. The projected cash flow and other financial information contained herein are for reference only.

Although the information contained in this Memorandum is believed to be accurate and reliable, neither the Seller nor its exclusive agent guarantees its accuracy or completeness. Because of the foregoing and because the Property will be sold on an “as is” basis, prospective purchasers should make their own independent assessments, investigations, and projections regarding the Property. Although additional material, which may include engineering, environmental, or other reports, may be provided to certain prospective purchasers as appropriate, such parties should confer with their own engineering and environmental experts, counsel, accountants and other advisors.

The Seller expressly reserves the right, in its sole discretion, to reject any offer to purchase the Property or to terminate any negotiations with any party at any time, with or without notice. The Seller shall have no legal commitment or obligation to any prospective purchaser unless and until a written Purchase and Sale Agreement has been fully executed and delivered and any and all conditions to the Seller’s obligations thereunder have been fully satisfied or waived.

The Seller is responsible for any commission due its agent in connection with a sale of the Property. The Seller shall not be responsible for any commission claimed by any other agent or broker in connection with a sale of the Property. No other party, including the Seller’s exclusive agent, is authorized to make any representation or agreement on behalf of the Seller. This Memorandum remains the property of the Seller and its exclusive agent and may be used only by parties approved by the Seller and its exclusive agent. No portion of this Memorandum may be copied or otherwise reproduced or disclosed to anyone except as provided herein and as permitted by the express terms of the Confidentiality Agreement.

STATEMENT OF CONFIDENTIALITY + CONDITIONS

DOWNLOAD A PRINTABLE VERSION HERE

TRAVIS TRAUTVETTERExecutive Managing Director


JAKE TRAUTVETTERCapital Markets


MELISSA CARSONSenior Brokerage Coordinator


ROSCHELLE BULDASenior Marketing Specialist


https://www.dropbox.com/s/w6dtck6ud61cjps/Topeka%20FMC%20OM.pdf?dl=0

fresenius medical care topeka · foot kidney dialysis clinic that is 100% leased to fresenius...

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