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5220 Eastman Ave, Midland, MI, 48640

Greater Michigan Oral Surgeons & Dental Implant Center
$3,257,143

Key Information

Cap Rate
7%
$ per SF
$524
Tot. SF
6,207
Lot Size
1.37 Acres
Year Built
2022
Type
Healthcare
Occupancy
100%
NOI
$228,000

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.
  • Recently Constructed Purpose Built Medical Facility: Constructed in 2022, the Midland property features a modern, purpose built design tailored for oral surgery and implant procedures. The recent construction supports long term functionality and reduces near term capital expenditure risk.
  • Employer Anchored Economy Led by Dow Inc.: Midland is the global headquarters of Dow Inc., one of the world’s largest materials science companies. Dow maintains a significant corporate, research, and manufacturing presence in the market and is a primary driver of local employment, household income, and long term economic stability. This employer base supports consistent demand for healthcare services, including specialized oral surgery and implant procedures.
  • Eastman Avenue Location Along Midland’s Primary Commercial Corridor: The property is located along Eastman Avenue, Midland’s main commercial corridor, with proximity to regional retail, professional services, and healthcare users. The corridor provides strong visibility, ease of access, and convenient parking, all of which are critical for procedure based medical practices.

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