Heartland Dental MOB | Madison, AL

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Investment Highlights

Recently Extended Lease

Heartland Dental demonstrated its long-term confidence in this location by exercising a 5-year renewal option ahead of schedule. This early renewal extends their lease through March 2031, reinforcing their strong operational performance and long-term commitment to the site. This proactive decision further enhances the investment’s stability, reducing vacancy risk and ensuring consistent rental income for years to come.

Annual Escalations

Both tenants benefit from contractual annual rent escalations, ensuring steady income appreciation over time. Heartland Dental features 2.5% annual increases, while Southpaw Animal Clinic benefits from 3.0% yearly rent increases, significantly enhancing cash flow and long-term valuation. These built-in escalations provide a hedge against inflation and contribute to a strong, growing yield for investors.

Medical Build-Out

The medical office is specifically designed to accommodate a diverse range of medical tenants, fostering a stable and resilient tenant mix. Medical use tenants are particularly attractive to investors compared to traditional office tenants due to their long-term lease commitments and consistent demand for healthcare services. This strategic design enhances the property’s stability and long-term investment appeal.

Tenant-Maintained HVAC

Investor exposure to major HVAC expenses is significantly reduced due to the lease structure. Both Southpaw Animal Clinic and Heartland Dental are contractually obligated to handle all HVAC repairs and maintenance, ensuring that ownership has minimal financial responsibility. This arrangement lowers capital expenditures and enhances the property’s long-term stability as a passive investment.

Facility Type	Building Area (SF)	Years Remaining	Net Operating Income
100% Occupied Two-Tenant MOB	9,858 Square Feet	7.4 Years (WALT)	$227,475

An aerial view of madison alabama and a heartland dental office.

An aerial view of a parking lot with a heartland dental in the background.

Investment Overview

Peranich Huffman Net Lease Group is pleased to exclusively present for sale the Heartland Dental Medical Office Building in Madison, AL. Offered at a 7.00% capitalization rate, this property provides investors with a compelling opportunity to acquire a facility housing two strong medical operations, including a nationally recognized medical tenant known for its consistent performance—both in patient care and within the real estate investment community.

Net Lease Structure

This property features a landlord-friendly net lease structure, minimizing ownership responsibilities while ensuring reliable income. Heartland Dental operates under a NNN lease, where the landlord is responsible only for structural and roof replacement and repair, while the tenant covers all other operating expenses. Southpaw Animal Clinic also follows a NNN lease, requiring the tenant to pay for taxes, insurance, and all maintenance outside of the structure and roof, further reducing the owner’s financial obligations and making this a low-maintenance investment opportunity.

Lease Term

Both tenants have long-term leases in place, ensuring stable cash flow for years to come. Heartland Dental is committed through April 2031, with (4) 5-year renewal options and 2.5% annual rent increases, providing consistent income growth over time. Southpaw Animal Clinic recently signed a lease extending through May 2034, featuring (2) 5-year renewal options and 3.0% annual rent escalations, further enhancing the property’s longterm revenue potential.