176 Ponderosa Rd
Colville, WA 99114
DaVita Dialysis | 2015 Build to Suit · Retail Property For Sale

Marcus & Millichap has been exclusively selected to market for sale the DaVita Dialysis Center at 198 Ponderosa Road #A in Colville, WA. The 6,043 square foot building is situated on 1.28 acres and benefits from exposure and accessibility to Highway 395, the primary north/south arterial connecting Colville to Spokane. Additionally, the property benefits from its proximity to Providence Mount Carmel Hospital as well as several assisted living and senior living facilities. A Build-to-Suit redevelopment for DaVita in 2015, the former structure was completely renovated and upgraded per DaVita specifications. The dialysis center includes 6 stations with space for 6 additional stations to accommodate future growth, and offers in-center hemodialysis (HD) and peritoneal dialysis (PD). After being delivered the premises, DaVita contributed nearly $1 million towards additional tenant improvements and building upgrades. The corporate guaranteed lease has over 10 years remaining on the initial term and requires minimal landlord responsibilities. The tenant is responsible for direct payment of real estate taxes, insurance, and utilities; and must reimburse for nearly all repairs and capital expenditures. See Lease Abstract for details. Moreover, the lease offers scheduled 10% rent increases every 5 years, providing for an average cap rate of nearly 5.9% over the remaining lease term. Washington State is a Certificate of Need (CoN) state, meaning construction of any new health care facilities (including dialysis centers) must be approved by the Washington State Department of Health. Approval for such construction is not granted until the demand for dialysis stations exceeds the current supply in any given “Planning Area.” Currently the Stevens County Planning Area has an oversupply of stations by approximately 20%, and based on the growth trends, it will take 25 years +/- to fill the demand, meaning this site is at very low risk of outgrowing the building for many years to come.