607 1st Dr NW | Austin, MN 55912
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607 1st Dr NW
Austin, MN 55912
Office Property For Sale
Investment Highlights
- Absolute NNN Dental Investment Opportunity Corporate Guaranty - 729+ Locations Across 42 States.
- Lease features 2% annual rental increases, providing a landlord with a strong and consistent hedge against inflation.
- Secure Financial Backing - MB2 Dental is expected to be valued at between $2.3 billion - $2.5 billion, based on annual EBITDA of about $195 million.
Executive Summary
PROPERTY & LEASE HIGHLIGHTS
• Dominant Corporate Guaranty - Lease features a full corporate guaranty from MB2 Dental - one of the nation’s largest and most successful Dental Partnership Organizations, with 729+ locations across 42 States.
• Ideal 1031 Exchange & Passive Investment - This Absolute NNN lease provides a passive investment vehicle for both in and out of state investors, with ZERO landlord responsibilities.
• Unique Absolute NNN MB2 Dental Lease - This lease type was specifically designed for this practice acquisition by MB2 only, and is truly one of a kind. All interior + exterior maintenance costs reimbursed by tenant.
• Secure Financial Backing - MB2 Dental is expected to be valued at between $2.3 billion - $2.5 billion, based on annual EBITDA of about $195 million.
• Inflationary Protected Lease - Lease features 2% annual rental increases, providing a landlord with a strong and consistent hedge against inflation.
• E-Commerce Resistant Healthcare Investment - Dental office leased properties are highly sought-after investments due to their insulation from e-commerce competition and resistance to economic downturns. The number of general dentists in the U.S. increased from 110,730 in 2019 to 121,640 in 2023, an increase of 9.8%.
TENANT HIGHLIGHTS
• Strong Private Equity Backing - KKR & Co. Inc with $553 billion in assets under management (AUM) as well as Charlesbank Capital Partners with $15 billion in AUM have invested heavily in MB2 Dental.
• Growing Company - In February 2024, MB2 Dental secured a $2.344 billion unitranche debt facility with KKR, which will be used to fund upcoming acquisitions and future growth for the company, following a record year of growth in 2023 with 150 new partnerships.
• Corporate Guaranty - Lease features a full corporate guaranty from MB2 Dental. Headquartered in Dallas, Texas, MB2 Dental was founded in 2007 as America's first and fastest Dental Partnership Organization (DPO).
• Full Range Service Dentistry - This dental office offers general dentistry, oral surgery, restorative dentistry, teeth-whitening, prosthetic dentistry, and more. Practice was acquired by MB2 Dental recently due to its exceptional performance. Property was extensively renovated in 2016.
• $154.96 Billion Dollar Industry - The US dental services market is estimated to reach $254.09 billion by 2032, increasing from $154.96 billion in 2023, growing at a healthy CAGR (compound annual growth rate) of 6.24% between 2023 and 2032.
LOCATION HIGHLIGHTS
• Stable Economic Environment - Austin, MN has a labor force participation rate (LFP) of approximately 63.5%, which is higher than the US average.
• Strategic Location - Property is located 0.3 miles away from Mayo Clinic Health System’s Austin Hospital. The hospital offers primary care, preventive care, specialty care services, and an emergency department that provides care to patients 24 hours a day, 7 days a week. Mayo Clinic’s Rochester, Minnesota location was ranked the #1 Hospital in the World in 2023 (Newsweek).
• Largest Employer - Hormel Foods Corporation, (NYSE: HRL), a Fortune 500 global branded food company headquartered in Austin has been named one of the World’s Most Admired Companies in 2023, by Fortune magazine. Hormel Foods contributes significantly to the local economy.
• Well Visited Location - This dental office is recognized as one of the most visited and well known dental offices in the city of Austin, MN.
• Dominant Corporate Guaranty - Lease features a full corporate guaranty from MB2 Dental - one of the nation’s largest and most successful Dental Partnership Organizations, with 729+ locations across 42 States.
• Ideal 1031 Exchange & Passive Investment - This Absolute NNN lease provides a passive investment vehicle for both in and out of state investors, with ZERO landlord responsibilities.
• Unique Absolute NNN MB2 Dental Lease - This lease type was specifically designed for this practice acquisition by MB2 only, and is truly one of a kind. All interior + exterior maintenance costs reimbursed by tenant.
• Secure Financial Backing - MB2 Dental is expected to be valued at between $2.3 billion - $2.5 billion, based on annual EBITDA of about $195 million.
• Inflationary Protected Lease - Lease features 2% annual rental increases, providing a landlord with a strong and consistent hedge against inflation.
• E-Commerce Resistant Healthcare Investment - Dental office leased properties are highly sought-after investments due to their insulation from e-commerce competition and resistance to economic downturns. The number of general dentists in the U.S. increased from 110,730 in 2019 to 121,640 in 2023, an increase of 9.8%.
TENANT HIGHLIGHTS
• Strong Private Equity Backing - KKR & Co. Inc with $553 billion in assets under management (AUM) as well as Charlesbank Capital Partners with $15 billion in AUM have invested heavily in MB2 Dental.
• Growing Company - In February 2024, MB2 Dental secured a $2.344 billion unitranche debt facility with KKR, which will be used to fund upcoming acquisitions and future growth for the company, following a record year of growth in 2023 with 150 new partnerships.
• Corporate Guaranty - Lease features a full corporate guaranty from MB2 Dental. Headquartered in Dallas, Texas, MB2 Dental was founded in 2007 as America's first and fastest Dental Partnership Organization (DPO).
• Full Range Service Dentistry - This dental office offers general dentistry, oral surgery, restorative dentistry, teeth-whitening, prosthetic dentistry, and more. Practice was acquired by MB2 Dental recently due to its exceptional performance. Property was extensively renovated in 2016.
• $154.96 Billion Dollar Industry - The US dental services market is estimated to reach $254.09 billion by 2032, increasing from $154.96 billion in 2023, growing at a healthy CAGR (compound annual growth rate) of 6.24% between 2023 and 2032.
LOCATION HIGHLIGHTS
• Stable Economic Environment - Austin, MN has a labor force participation rate (LFP) of approximately 63.5%, which is higher than the US average.
• Strategic Location - Property is located 0.3 miles away from Mayo Clinic Health System’s Austin Hospital. The hospital offers primary care, preventive care, specialty care services, and an emergency department that provides care to patients 24 hours a day, 7 days a week. Mayo Clinic’s Rochester, Minnesota location was ranked the #1 Hospital in the World in 2023 (Newsweek).
• Largest Employer - Hormel Foods Corporation, (NYSE: HRL), a Fortune 500 global branded food company headquartered in Austin has been named one of the World’s Most Admired Companies in 2023, by Fortune magazine. Hormel Foods contributes significantly to the local economy.
• Well Visited Location - This dental office is recognized as one of the most visited and well known dental offices in the city of Austin, MN.
PROPERTY FACTS
Sale Type
Investment
Sale Condition
1031 Exchange
Property Type
Office
Property Subtype
Medical
Building Size
4,201 SF
Building Class
B
Year Built/Renovated
1977/2016
Price
$1,587,398 CAD
Price Per SF
$378 CAD
Cap Rate
6%
NOI
$95,244 CAD
Tenancy
Single
Building Height
1 Story
Typical Floor Size
4,201 SF
Building FAR
0.33
Lot Size
0.29 AC
Opportunity Zone
Yes
Zoning
Commercial - Medical/Dental
Parking
16 Spaces (3.81 Spaces per 1,000 SF Leased)
PROPERTY TAXES
| Parcel Number | 34-460-0490 | Improvements Assessment | $462,712 CAD |
| Land Assessment | $117,439 CAD | Total Assessment | $580,151 CAD |
PROPERTY TAXES
Parcel Number
34-460-0490
Land Assessment
$117,439 CAD
Improvements Assessment
$462,712 CAD
Total Assessment
$580,151 CAD
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