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4161 Shrestha Dr, Bay City, MI, 48706

Greater Michigan Oral Surgeons & Dental Implant Center
$3,085,714

Key Information

Cap Rate
7%
$ per SF
$536
Tot. SF
5,757
Lot Size
2.09 Acres
Year Built
2019
Term Remaining
±9.8 YRS
Type
Healthcare
Occupancy
100%
NOI
$216,000

Highlights

  • Long Term Net Lease: This property is secured by a ten-year NNN lease, with extremely minimal landlord responsibilities. It’s a great choice for investors looking for dependable income without the hassle of day-to-day management.
  • Three Percent Annual Rental Increases: The lease features three percent (3%) annual rental escalators, giving investors a hedge against inflation and consistent, predictable rent growth.
  • 8.02% Average Cap Rate Over the Base Lease Term: The lease structure and 3 percent annual rent increases result in an average cap rate of approximately 8.02 percent over the base term of the lease, providing investors with an attractive blended yield and enhanced cash flow growth over time.
  • Proven Industry with E-Commerce Resistance: Healthcare and dental operators are not subject to the same competitive pressures faced by traditional retail tenants. Oral surgery is a highly specialized, procedure-based service that cannot be replicated online and must be performed in a licensed clinical setting.
  • Demographic and Procedure Driven Growth: Oral surgery demand is being driven by long term demographic and healthcare trends, including an aging population, rising utilization of dental implants, and increased prevalence of oral disease. These factors support sustained procedure volumes and long term demand for oral surgery services independent of economic cycles.
  • Broad, Scaled Market with Long Term Demand: The U.S. surgical dentistry market generates approximately $15 billion in annual revenue, underscoring the depth and durability of the sector. More broadly, the global dental market is projected to grow from approximately $44.7 billion in 2026 to over $118 billion by 2034, reflecting the significant scale and continued expansion of the overall dental services market.
  • Limited Supply of Specialists: Oral and maxillofacial surgery is a highly specialized field with a limited and tightly controlled training pipeline. The number of accredited residency programs and annual graduates remains relatively small compared to overall demand, particularly as procedure volumes increase due to aging demographics and growing implant utilization. This constrained supply of specialists supports strong utilization, durable pricing, and long term stability for well located oral surgery practices.
  • High Barrier to Entry Specialty Real Estate: Oral surgery facilities require specialized buildouts, advanced imaging, and procedure rooms that are costly and difficult to replicate. Combined with a limited supply of qualified specialists, this creates meaningful barriers to entry and supports long term occupancy at the property level.
  • 2019 Construction with Purpose Built Medical Design: Constructed in 2019, the building features a modern, purpose built layout designed specifically for oral surgery and implant procedures. The newer construction reduces near term capital expenditure risk and supports long term tenant retention.
  • Strong Regional Population Density: Bay City sits within Michigan’s Great Lakes Bay Region, which includes a combined population base of roughly 400,000 across Bay, Midland, and Saginaw counties. This regional density supports specialized healthcare services like oral surgery while avoiding the competitive saturation and volatility often found in larger primary markets.

Photos

Location

Agents

Broker of Record

Matt Fitzgerald

License # 6505432273, 6502432668 (MI)
Matthews Real Estate Investment Services, LLC
1600 West End Ave, Ste. 1500 Nashville, TN 37203