Best In Class Tenant: Specialty Dental Brands is a premier operator specialty-speciﬁc dental practices across the US. With over 250 locations, they focus not on general dentistry but on higher acuity specialties like oral surgery.
Relocation Clinic: This Elk River oﬃce was built to expand an existing oral surgery practice in this market, demonstrating existing and growing demand within the area. The local AOMS brand is home to seven diﬀerent oral surgeons.
15 NNN Lease, 3% Annual Increases: Dental oﬃces do not frequently oﬀer the rare combination of both a 15-year base term and strong 3% annual inﬂation hedge. The average cap rate across the base term of the lease is 7.93%, which grows to 9.55 % by the ﬁnal year.
Unique Option Structure: Specialty Dental Brands’ lease oﬀers a very rare one (1) ten (10) year option. Most new construction properties only oﬀer several 5-year options after the base term, which leaves owners with decades of short-term renewals.
High Growth, Recession Resistant, $187 Billion Industry: Dentistry is one of the largest industries in healthcare and grows by an average of 5% annually. This oﬀering provides the opportunity to acquire a property within one of the most important areas of healthcare, and within the most medically necessary specialty of dentistry.
Robust Retail Corridor & High Traﬃc Counts: The property is very well positioned across the highway from a retail corridor that is home to a Walmart Supercenter, Home Depot, and many other national tenants. US-169 sees over 45,000 cars per day just down the street from the property.
Aﬄuent Household Income, Substantial Population Growth: The Elk River submarket of Minneapolis features high household incomes of over $130,000 within a 5-mile radius. The area population grew by an impressive 2.0% annual over the past ﬁve years. The city actively has over 1,600 single and multifamily units under development as demand in the area continues to soar.
Specialized Use & Tenant Investment in Location: It is highly cost prohibitive for oral surgery practices to relocate due to having one of the highest build-out costs across all healthcare specialties.

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Kurt Sauer