The subject property is a 8,136-square foot newly constructed single-tenant DaVita Dialysis in Frisco, Texas. The new 15 year double-net lease has a corporate guarantee from DaVita HealthCare Partners, Inc, a publicly traded company (NYSE: DVA). The tenant has a BB credit rating from Standard & Poor’s. The lease provides for two percent annual rent escalations beginning after the second year with three, five-year options for renewal that have rent bumps at the beginning of each option period. Landlord is responsible for maintaining the roof, concrete slab, foundation, structural components, parking areas, sidewalks, driveways, exterior doors, utility lines not exclusively serving the building, and electrical systems of the building.
The subject property is situated on 1.59 acres on Sports Village Road just east of the Dallas North Tollway. The property is located in a highly affluent area, with a one mile average household income of $128,750. Neighboring national and regional tenants include Costco, Target, Best Buy, Hampton Inn & Suites, Rudy’s Country Store, Comfort Suites, The Blue Goose Cantina, Cinemark Theaters, and Babe’s Chicken Dinner House. A new mixed-use development, called Frisco Fresh Market, will be situated on 32 acres just south of the subject property. The development will be anchored by an 80,000-square foot farmers market featuring indoor and outdoor space and will also include office buildings, additional retail and restaurants, apartments and a hotel. Directly across from the Frisco Fresh Market development is Toyota Stadium, home to Major League Soccer team FC Dallas.
Frisco is located in Denton and Collin Counties, approximately 25 minutes north of Dallas. Frisco is known for business with new corporations calling Frisco home each day. One of the fastest growing communities in Texas, Frisco’s population has grown 247 percent from 2000 to 2009, making it the fastest growing city in America for the decade. The most recent U.S. Census Bureau data shows Frisco is currently the 12th fastest growing city in the nation.
