For Sale
$2,774,000

235 Chelten AvePhiladelphia, PA 19144

Net-leased medical investment; strong tenant.

Overview

Added:
Dec 11, 2024
Days on market:
114
This exceptional investment opportunity presents a 15,289 square-foot, single-tenant retail property leased to DaVita Dialysis, a Fortune 500 company. Located at 235 W Chelten Ave, Philadelphia, PA 19144, this property boasts a 13.1-year remaining lease term (expiring 12/31/2037) with three 5-year options, and includes annual 1% rent escalations. The lease is a NNN (triple net) structure, meaning the tenant is responsible for most operating expenses, including property taxes, insurance, and repairs. The landlord's responsibility is limited to building structure, parking lot replacement, and roof replacement; a new roof with a 15-year transferable warranty was installed in 2024. The property sits on a 0.51-acre lot and benefits from high visibility on West Chelten Avenue, with over 10,300 vehicles passing daily. The strong tenant, DaVita, Inc., provides a corporate guarantee, mitigating risk. The property's Net Operating Income (NOI) is $194,183, resulting in a 7.00% capitalization rate. The asking price is $2,774,000 ($181.44 per square foot). This investment offers a secure, long-term income stream in a densely populated area with an average household income exceeding $79,000 within a 5-mile radius. Proximity to major medical centers and national retailers further enhances the property's value. The property is conveniently located near SEPTA's Chestnut Hill West Line.

Highlights

  • $2,774,000 asking price for this DaVita Dialysis center, offering a 7.00% cap rate and $194,183 NOI.
  • The DaVita lease is corporately guaranteed by DaVita, Inc., a Fortune 500 company with a "BB" S&P rating.
  • A recent 10-year lease extension provides over 13 years of remaining lease term.
  • Located in a dense Philadelphia area with over 837,000 residents within 5 miles and average household income exceeding $79,000.
  • The lease features 1% annual rent escalations for the remaining 13 years and three 5-year options.

Property Details for 235 Chelten Ave

Property type
Retail properties, Office properties
Square Feet
15,289 SF
Year Built/Renovated
1985/2024
Buildings
1
Stories
1
Lot Size (sq. ft)
22,216 SF
Units
1

Location Insight

City
Philadelphia
County
Philadelphia
State
Pennsylvania
Latitude
40.030835959226
Longitude
-75.179877334394
235 Chelten Ave, Philadelphia, Pennsylvania

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235 Chelten Ave
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