Heartland Dental | West Bend, WI

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Investment Highlights

Strong Corporate Guarantee - The Heartland Dental of West Bend, WI lease is corporately guaranteed by Heartland Dental, LLC. Heartland Dental is the nation's largest dental organization providing support services to 1,700 locations in 38 states.

Recent Practice Acquisition - Heartland Dental strategically acquired the smaller 278-location DSO, American Dental Partners, in 2021, seamlessly integrating its operations and assuming all associated leases, including this location. This acquisition underscores Heartland's commitment to expanding its footprint and enhancing service offerings in the dental care sector.

Rental Rate Escalations- Providing as a hedge against inflation, the lease features 2% annual or change in CPI rent escalations. Additionally, the Heartland Dental lease provides for (2) 5-year options to renew also with 10% every 5 years option escalations. These annual rent increases help keep rental income in line with inflation and rising property maintenance costs, ensuring landlords can sustain property quality and investment value.

Tenant Reimburses Management- As stipulated in the lease, the tenant will cover management expenses through a provision that allows the landlord to pass on up to 5% of operating costs to tenants. This setup ensures that tenants contribute to the cost of property management without exceeding a specified limit, helping landlords maintain profitability while keeping operational expenses predictable.

Facility Type	Building Area (SF)	Years Remaining	Net Operating Income
Single Tenant	2,500 Square Feet	3 Years	$84,666

Investment Overview - Peranich Huffman Net Lease Group is pleased to offer for sale, on an exclusive basis, the Heartland Dental of West Bend, WI. Offered at a 7.10% capitalization rate, the offering provides an investor with the opportunity to acquire a property with a strong operation that is home to a national medical tenant that exemplifies a reputation of consistency for both patients and he real estate investment community.

Lease Term - Heartland Dental has occupied the 2,500 SF medical facility since they acquired the practice in 2015. The single tenant Heartland Dental has 2.88+ years of lease term remaining with 2% or change in CPI rent escalations occurring annually throughout the remainder of the term. Additionally, the Heartland Dental lease provides for (2) 5-year options to renew also with 10% every 5 years option escalations.

Net Lease Structure - The lease is structured on a net basis, whereby the tenant is responsible for all expenses related to the HVAC, parking lot, interior/non-structural elements, landscaping, insurance, property taxes, and utilities. The landlord has responsibilities limited to the maintenance of the roof and structure.

About the Tenant - Heartland Dental is the nation's largest dental support organization providing non-clinical, administrative support services to 2,800 supported dentists across 38 states. Heartland Dental partners with its supported dentists to deliver high-quality care across the full spectrum od dental services.