• Backed By CVS Health – In 2023, Oak Street Health was acquired by CVS Health (NYSE: CVS) for approximately $10.6 billion and now operates as a wholly owned subsidiary. This relationship with one of the nation’s largest healthcare companies provides strong financial backing and enhances the tenant’s credit profile.
• Strategic National Expansion – Oak Street Health currently operates more than 230 centers nationwide and continues to expand, with plans to exceed 300 clinics by 2026.
• Mission-Critical Healthcare Use In Underserved Area – This Kansas City location provides essential outpatient care to an aging, Medicare-eligible population in a medically underserved area, supporting Oak Street Health’s value-based care model.
• Long-Term Lease With Rent Growth – The property is subject to a 17-year NNN lease commencing in 2023, with scheduled rent escalations and two 5-year renewal options.
• Ideal 1031 Exchange Opportunity – This asset generates passive income through a long-term NNN lease with built-in rent growth, minimal landlord responsibilities, and a nationally recognized tenant—making it well-suited for 1031 exchange investors seeking stable, growing cash flow.
• Established Multi-Clinic Presence In The Kansas City Market – Oak Street Health operates three clinics across the Kansas City metro, reinforcing its scalable care model and long-term commitment to the region. This footprint enhances brand visibility, supports referral synergies, and reflects confidence in continued market growth.
• $1.9 Million Tenant-Funded Renovation – In 2023, the tenant invested $1.9 million to renovate and upgrade the facility for its own use, demonstrating strong commitment to the location and significantly improving the property’s infrastructure and buildout.