Chapter Aesthetic Studio & University of Iowa Health Care

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Investment Highlights

Corporately Guaranteed - The Chapter Aesthetic Studio lease is backed by a corporate guarantee from the Chapter's parent company, Aspen Dental Management, Inc., bringing security to the investment.

Backed by State of Iowa- The University of Iowa Health Care lease is signed by the Board of Regents, State of Iowa (S&P: AA-), for the use and benefit of the University of Iowa.

Rent Escalations- The Chapter Aesthetic Studio lease provides for a 10% increase in 2028 and 8% increases in each of the (3) 5-year option periods. The University of Iowa Health Care lease provides for (3) 5-year option period accompanied by 10% rent increases at the start of each renewal option.

Strong Demographics- The subject property’s location benefits from a strong demographic profile with population counts exceeding 130,000 (5-mile radius). In 2023, households earned an average of $98,000 (3-mile radius), estimated to increase by over 12% in the next 5 years.

Facility Type	Building Area (SF)	Years Remaining	Net Operating Income
Two Tenants	6,900 Square Feet	6.5 Years (Avg.)	$252,000

Investment Overview - Peranich Huffman Net Lease Group is pleased to exclusively offer for sale, the Chapter Aesthetic Studio & University of Iowa Health Care located in Davenport, IA. Priced at a 6.60% capitalization rate, the offering provides an investor the opportunity to acquire a two-tenant asset that is home to a national medical tenant and a highly reputable public university known for its strong financial stability and excellent creditworthiness. Built in 2022 on a 1.05-acre lot, the subject property is located along Davenport's main retail corridor; East 53rd Street (31,600 average vehicles per day).

Leases - Chapter Aesthetic Studio executed a 10-year lease on 3,500 SF that commenced in January of 2023. With 8.3 years of lease term remaining, the lease provides for 10% escalations every 5 years. Additionally, Chapter has the option to renew the lease for (3) 5-year terms with 8% rent increases at the start of each term. The lease is corporately guaranteed by Aspen Dental Management, Inc., the parent corporation of Chapter Aesthetic Studio.

University of Iowa Healthcare executed a 5-year lease on 3,400 SF that commenced in August of 2023. With 4 years of lease term remaining, the lease provides for (3) 5-year renewal options accompanied by 10% rent increases at the start of each term. The lease is backed by the Iowa Board of Regents, a 9-member governing body overseeing the three public universities in the state of Iowa.

Tenants - Chapter Aesthetic Studio is one of the top med spa studio brands in the nation. The company was founded in 2005 under the name of "Rejuv" and re-branded to "Chapter" in 2020 upon partnering with Aspen Dental. Now operating under the Aspen Dental Management, Inc. (ADMI) umbrella, Chapter Aesthetic Studio has expanded to 22 locations across 7 states (IA, IL, MN, ND, NY, SD, and WI), with further expansion planned for 2024 and beyond.

University of Iowa Health Care (UIHC), known for its comprehensive and high-quality healthcare services, employs over 7,100 people and is overseen by the Iowa Board of Regents. As an integral part of the University of Iowa, UIHC combines patient care, medical education, and innovative research while operating out of 65+ locations including UIHC's flagship 811-bed public teaching hospital & Level 1 trauma center.