November 4, 2019 — Newmark Knight Frank (NKF) has completed the $8.8 million sale of a single-tenant, 21,000-square-foot dialysis clinic fully occupied on an absolute, triple-net lease basis by Fresenius Medical Care. With over 3,900 locations, Fresenius is the leading dialysis clinic in the United States, and this asset, located at 1809 West Chapman Avenue in Orange, CA, is one of its flagship Southern California locations.
NKF’s Senior Managing Directors Glenn Rudy and Rob Ippolito represented the seller, Orange County-based Adray Plaza, LLC. The buyer, a Southern California-based family trust, who was in a 1031 exchange, was represented by Matthew Graham of Graham & Associates.
“This asset is adjacent to the Platinum Triangle of Anaheim which is the most active area per capita for residential/mixed use development in all of Orange County, and subsequently has been attractive to capital investment,” said Rudy. “NKF’s Retail Capital Markets team has been active in this submarket over the last 24 months with a total of eight properties either sold, currently in escrow, or on the market now.”
Originally built in 1988 with a complete renovation in 2016 to meet Fresenius’ specifications, the asset is situated on 1.63 acres. 1809 West Chapman is well-located less than half a mile east of State Route 57 and benefits from 350 feet of frontage along Chapman Avenue. It is also less than a mile from world-renowned U.C. Irvine Medical Center, St Joseph Hospital and CHOC Children’s Hospital as well as leading educational campuses Azusa Pacific and Chapman Universities.
Rudy summarized, “Given the long-term, net lease structure; strong credit tenancy; and favorable, infill location, this asset presents the new ownership with a safe, secure cash-flowing investment that is hard to replicate in today’s Orange County market.”