Dermatology of East Texas

• Attractive High-Yield Returns: Offered at $1,000,000 at a 7.75% cap rate ($77,500 NOI), providing investors with a significant spread over treasury yields and superior cash-on-cash returns compared to low-cap, highly competitive primary markets.
• Turnkey Passive Income (NNN): At closing, the seller will execute a new 7-year NNN sale leaseback with limited landlord responsibilities, providing predictable income with minimal ongoing management.
• Established & Highly Sticky Medical Practice: Occupied by Dermatology of East Texas, a premier regional practice founded in 1994 by Dr. Matthew Rowley. Having operated for over 30 years and served 30,000+ patients, the tenant boasts unmatched clinical stickiness and local market dominance.
• Additional Credit Security (Dual Guaranty): The lease features a personal guaranty, backing rental payments with full business revenues and personal balance sheets to offer maximum income security.
• Built-in Inflation Protection: Features steady 2.5% annual rent escalations throughout the initial 7-year term and option periods, guaranteeing consistent NOI growth and insulating investor returns against inflationary pressures.
• Roof Replaced in 2024: According to ownership, the roof was replaced in 2024 at a cost of approximately $27,000, reducing near term capital expenditure needs and helping preserve cash flow for a new owner.
• Dominant Regional Healthcare Engine: Strategically located in Lufkin, TX – the medical and economic hub for a multi-county East Texas region. Positioned within a dense medical corridor in close proximity to major hospital anchors CHI St. Luke’s Health Memorial (279 beds) and Woodland Heights Medical Center (149 beds).
• Income Tax-Free State Advantage: Situated in Texas, offering investors the financial benefits of a pro-business environment, favorable demographic migration, and zero state income tax.