Heartland Dental | 4520 Lamar Ave, Paris, TX 75462 · • Treat all parƟes to a real estate...

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O F F E R I N G M E M O R A N D U M

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HEARTLAND DENTAL4520 LAMAR AVE | PARIS, TX 75462

LEASENNN 7.25%

CAP RATE2.50%

RENT IN CREA SES8

YEARS REMAINING±1,000LOCATION S

LISTED BY:

MICHAEL MORENOAssociate Vice President & Director

D: (949) 432-4511 M: (818) 522-4497E: [email protected] No. 01982943 (CA)

THOR ST JOHNSenior Associate


CONTENTS

03 EXECUTIVE OVERVIEW

06 FINANCIAL OVERVIEW

09 TENANT OVERVIEW

11 AREA OVERVIEW

RAHUL CHHAJEDAssociate Vice President & Director


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KYLE MATTHEWSBroker of RecordLicense No. 9005919 (TX)

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EXECUTIVEOVERVIEW

SECTION

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L A M A R R D± 2 1 , 0 0 0 V P D

286

± 2 3 , 0 0 0 V P DLIST PRICE

$1,668,769

TOTAL NOI

$120,985

CAP RATE

7.25%

±4,586 SF

GROSS LEASABLE AREA

PROPERTY HIGHLIGHTS• Rare Absolute NNN Healthcare Lease—Healthcare properties are sought after for their resistance to recessions

and e-commerce, and are rarely offered as a completely hands-off investment.

• Ideal 1031 exchange property with no landlord responsibilities, 2.50% annual increases, corporate guarantee, and eight years of term remaining.

• Tenant Investment in Location—Dental support organizations rarely relocate due to high build-out costs of and difficulty in retaining the same patients after moving.

LOCATION HIGHLIGHTS

• Texas is a zero income tax state

• High Traffic Area—Lamar Ave sees nearly 21,000 cars per day and runs through all of Paris.

• Robust Retail Corridor—The property benefits from close proximity to the Paris Towne Center, a 290,000 SF shopping center, which is the largest in the city. Surrounding national retail tenants include a Walmart Supercenter, Hobby Lobby, ALDI, CVS, Ashley HomeStore, PetCo, Walgreens, and many more.

TENANT HIGHLIGHTS• Top Dental Operator–Heartland Dental has over 1,000 locations and is the largest dental support organization

in the country.

• Credit Tenant—Heartland is rated B2 (Moody’s), providing one of the strongest guarantees in the healthcare space.

• Consistent Growth—Since it was founded in 1997, Heartland has consistently added more locations every single year, providing an extremely strong growth outlook for the company.

• $137 Billion Industry—Dentistry is one of the largest industries in healthcare and grows by an average of 2.4% annually.

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L A M A R R D± 2 1 , 0 0 0 V P D

286

± 2 3 , 0 0 0 V P D

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L A M A R R D± 2 1 , 0 0 0 V P D

286

± 2 3 , 0 0 0 V P D

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FINANCIALOVERVIEW

SECTION

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INVESTMENT SUMMARY

List Price $1,668,769

NOI $120,985

CAP Rate 7.25%

Price/SF $363.88

GLA ± 4,586 SF

Year Built 2013

Lot Size ±1.41 Acres

Landscaping Professional

Topography Generally Level

TENANT SUMMARY

Tenant Name Heartland Dental

Type of Ownership Fee Simple

Lease Type Absolute NNN

Guarantor Corporate

(Roof/Structure) Tenant Responsible

Original Lease Term 15 Years

Lease Commencement Date 9/1/13

Lease Expiration Date 8/31/28

Term Remaining 8 Years

Increases 2.50% Annually

Options Two (2) Five (5) Year Options

ANNUALIZED OPERATING DATA

LEASE YEARS MONTHLY

RENT ANNUAL

RENT CAP RATE

Current $10,082 $120,985.73 7.25%

September 1, 2020 - August 31, 2021 $10,334 $124,010.37 7.43%








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TENANTOVERVIEW

SECTION

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HEARTLAND DENTALHeartland Dental was founded in 1997 by Rick Workman, DMD, who opened his first two dental offices in Effingham, IL. Today, Heartland Dental is the nation’s largest dental support organization providing non-clinical, administrative support services to 1,000 supported dentists across 37 states. Heartland Dental partners with its supported dentists to deliver high-quality care across the full spectrum of dental services, and is majority owned by KKR, a leading global investment firm.

At Heartland Dental, they are committed to helping dental professionals at every stage of their professional journey. They are experts in the business of dentistry with years of experience in the industry, and we’re committed to helping both established practice owners and young professionals further their dental careers. Whether a seasoned owner of a thriving practice or a fresh graduate looking to move forward in your professional life, Heartland Dental is here to helpHeartland Dental’s diverse team of administrative professionals is one of the best in the nation, and its committed to supporting dentists.

COMPANY NAMEHEARTLAND DENTAL

HEADQUARTERSEFFINGHAM, IL

LOCATIONS±1,000 LOCATIONS

Heartland Dental

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AREAOVERVIEW

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Paris famously known for the Eiffel tower of Texas is a city in Lamar County, Texas. Located in Northeast Texas, it is at the western edge of the Piney Woods and 98 miles northeast of the Dallas-Forth Worth Metroplex.

Paris, Texas rivals its French counterpart in impressive architecture and delicious cuisine, all along with friendly small-town hospitality that the Lone Star State is known for. Paris is a thriving town with an active arts scene, picturesque parks, and fun events held all year long.

Paris was a major cotton exchange and the county was developed as cotton plantations. Cotton is still farmed in some part of Paris, but isn’t a major part of the economy. Paris serves as a center for healthcare for much of Northeast Texas and Southeast Oklahoma. Paris Regional Medical Center is the major hospital that has two campuses: Paris Regional Medical Center South and Paris Regional Medical Center North. Both campuses are now jointly under the name of the Paris Regional Medical Center, a division of Essent Healthcare. The health network is one of the top employers in the Paris area.

PARIS, TX

POPULATION 1-MILE 3-MILE 5-MILE

2025 Projection 2,927 20,698 29,627

2020 Estimate 2,835 20,106 28,925

2010 Census 2,785 19,852 28,945

Growth 2020-2025 3.25% 2.94% 2.43%

Growth 2010-2020 1.79% 1.28% -0.07%

HOUSEHOLDS 1-MILE 3-MILE 5-MILE

2025 Projection 1,222 8,460 11,968

2020 Estimate 1,186 8,220 11,679

2010 Census 1,170 8,130 11,683

Growth 2020-2025 3.04% 2.92% 2.48%

Growth 2010-2020 1.37% 1.11% -0.03%

INCOME 1-MILE 3-MILE 5-MILE

2020 Avg. Household Income

$95,291 $69,841 $64,267

PROPERTY DEMOGRAPHICS

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11-2-2015

Information About Brokerage ServicesTexas law requires all real estate license holders to give the following informaƟon about

brokerage services to prospecƟve buyers, tenants, sellers and landlords.

TYPES OF REAL ESTATE LICENSE HOLDERS: .• A BROKER is responsible for all brokerage acƟviƟes, including acts performed by sales agents sponsored by the broker. • A SALES AGENT must be sponsored by a broker and works with clients on behalf of the broker.

A BROKER’S MINIMUM DUTIES REQUIRED BY LAW (A client is the person or party that the broker represents): • Put the interests of the client above all others, including the broker’s own interests; • Inform the client of any material informaƟon about the property or transacƟon received by the broker; • Answer the client’s quesƟons and present any offer to or counter-offer from the client; and • Treat all parƟes to a real estate transacƟon honestly and fairly.

A LICENSE HOLDER CAN REPRESENT A PARTY IN A REAL ESTATE TRANSACTION:

AS AGENT FOR OWNER (SELLER/LANDLORD): The broker becomes the property owner's agent through an agreement with the owner, usually in a wriƩen lisƟng to sell or property management agreement. An owner's agent must perform the broker’s minimum duƟes above and must inform the owner of any material informaƟon about the property or transacƟon known by the agent, including informaƟon disclosed to the agent or subagent by the buyer or buyer’s agent.

AS AGENT FOR BUYER/TENANT: The broker becomes the buyer/tenant's agent by agreeing to represent the buyer, usually through a wriƩen representaƟon agreement. A buyer's agent must perform the broker’s minimum duƟes above and must inform the buyer of any material informaƟon about the property or transacƟon known by the agent, including informaƟon disclosed to the agent by the seller or seller’s agent.

AS AGENT FOR BOTH - INTERMEDIARY: To act as an intermediary between the parƟes the broker must first obtain the wriƩen agreement of each party to the transacƟon. The wriƩen agreement must state who will pay the broker and, in conspicuous bold or underlined print, set forth the broker's obligaƟons as an intermediary. A broker who acts as an intermediary:

• Must treat all parƟes to the transacƟon imparƟally and fairly; • May, with the parƟes' wriƩen consent, appoint a different license holder associated with the broker to each party (owner and

buyer) to communicate with, provide opinions and advice to, and carry out the instrucƟons of each party to the transacƟon. • Must not, unless specifically authorized in wriƟng to do so by the party, disclose:

ᴑ that the owner will accept a price less than the wriƩen asking price; ᴑ that the buyer/tenant will pay a price greater than the price submiƩed in a wriƩen offer; and ᴑ any confidenƟal informaƟon or any other informaƟon that a party specifically instructs the broker in wriƟng not to

disclose, unless required to do so by law.

AS SUBAGENT: A license holder acts as a subagent when aiding a buyer in a transacƟon without an agreement to represent the buyer. A subagent can assist the buyer but does not represent the buyer and must place the interests of the owner first.

TO AVOID DISPUTES, ALL AGREEMENTS BETWEEN YOU AND A BROKER SHOULD BE IN WRITING AND CLEARLY ESTABLISH: • The broker’s duƟes and responsibiliƟes to you, and your obligaƟons under the representaƟon agreement. • Who will pay the broker for services provided to you, when payment will be made and how the payment will be calculated.

LICENSE HOLDER CONTACT INFORMATION: This noƟce is being provided for informaƟon purposes. It does not create an obligaƟon for you to use the broker’s services. Please acknowledge receipt of this noƟce below and retain a copy for your records.

Licensed Broker /Broker Firm Name or Primary Assumed Business Name

License No. Email Phone

Designated Broker of Firm License No. Email Phone

Licensed Supervisor of Sales Agent/Associate

License No. Email Phone

Sales Agent/Associate’s Name License No. Email Phone

Regulated by the Texas Real Estate Commission

Buyer/Tenant/Seller/Landlord Initials

InformaƟon available at www.trec.texas.gov IABS 1-0

Date

Kyle Matthews/Matthews Retail Group Inc. 678067 [email protected] (310) 919-5757

Kyle Matthews 678067 [email protected] (310) 919-5757

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This Offering Memorandum contains select information pertaining to the business and affairs of Heartland Dental located at 4520 Lamar Ave, Paris, TX 75462 (“Property”). It has been prepared by Matthews Real Estate Investment Services. This Offering Memorandum may not be all-inclusive or contain all of the information a prospective purchaser may desire. The information contained in this Offering Memorandum is confidential and furnished solely for the purpose of a review by a prospective purchaser of the Property. It is not to be used for any other purpose or made available to any other person without the written consent of Seller or Matthews Real Estate Investment Services. The material is based in part upon information supplied by the Seller and in part upon financial information obtained from sources it deems reliable. Owner, nor their officers, employees, or agents makes any representation or warranty, express or implied, as to the accuracy or completeness of this Offering Memorandum or any of its contents and no legal liability is assumed or shall be implied with respect thereto. Prospective purchasers should make their own projections and form their own conclusions without reliance upon the material contained herein and conduct their own due diligence.

By acknowledging your receipt of this Offering Memorandum for the Property, you agree:

1. The Offering Memorandum and its contents are confidential;2. You will hold it and treat it in the strictest of confidence; and3. You will not, directly or indirectly, disclose or permit anyone else to disclose this Offering Memorandum or its contents in any fashion

or manner detrimental to the interest of the Seller.

Owner and Matthews Real Estate Investment Services expressly reserve the right, at their sole discretion, to reject any and all expressions of interest or offers to purchase the Property and to terminate discussions with any person or entity reviewing this Offering Memorandum or making an offer to purchase the Property unless and until a written agreement for the purchase and sale of the Property has been fully executed and delivered.

If you wish not to pursue negotiations leading to the acquisition of the Property or in the future you discontinue such negotiations, then you agree to purge all materials relating to this Property including this Offering Memorandum.

A prospective purchaser’s sole and exclusive rights with respect to this prospective transaction, the Property, or information provided herein or in connection with the sale of the Property shall be limited to those expressly provided in an executed Purchase Agreement and shall be subject to the terms thereof. In no event shall a prospective purchaser have any other claims against Seller or Matthews Real Estate Investment Services or any of their affiliates or any of their respective officers, Directors, shareholders, owners, employees, or agents for any damages, liability, or causes of action relating to this solicitation process or the marketing or sale of the Property.

This Offering Memorandum shall not be deemed to represent the state of affairs of the Property or constitute an indication that there has been no change in the state of affairs of the Property since the date this Offering Memorandum.

CONFIDENTIALITY AGREEMENT & DISCLAIMER

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LISTED BY:

KYLE MATTHEWSBroker of Record

License No. 9005919 (TX)

HEARTLAND DENTAL4520 LAMAR AVE | PARIS, TX 75462

MICHAEL MORENOAssociate Vice President & Director

D: (949) 432-4511 M: (818) 522-4497

E: [email protected] No. 01911222 (CA)

THOR ST JOHNSenior Associate

D: (310) 955-1774 M: (510) 684-0574


RAHUL CHHAEDAssociate Vice President & Director

D: (949) 432-4513 M: (818) 434-1106


Heartland Dental | 4520 Lamar Ave, Paris, TX 75462 · • Treat all parƟes to a real estate...

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