861 N Blackstone St 5,897 SF Retail Building Tulare, CA 93274 $2,759,810 CAD ($468.00 CAD/SF) 6.50% Cap Rate

• Longstanding Central Valley Staple – Serving a Broad Regional Client Base:
Tulare Veterinary Hospital is a trusted, established provider of companion
animal care serving Tulare, Visalia, Hanford, Porterville, and Delano, CA. The
hospital benefits from a loyal, multi-city client base and strong regional brand
recognition, positioning it as a key veterinary provider across the greater
Central Valley corridor.
• 6.50% Cap Rate – Attractive Basis at $344.37/SF: Offered at a 6.50%
capitalization rate, this investment provides a strong risk-adjusted return for a
corporate-backed veterinary asset in California. Priced at $344.37 per square
foot, the offering represents a compelling entry basis relative to replacement
cost and medical buildout value.
• Recent June 2, 2025 Practice Acquisition: Tulare Veterinary Hospital was
acquired by Associated Veterinary Partners on June 2, 2025, reflecting a fresh
strategic commitment to the location and long-term operational outlook.
• Low Rental Rate/SF: The lease at $22.38 per square foot is well below market
rates for comparable veterinary hospitals in the state. This reduces tenant
turnover risk and enhances long term tenant stability at this location.
• 3% Annual Rent Increases: The lease features 3% annual rental increases,
providing steady organic NOI growth & an inflation hedge over the hold period.
• NNN Lease Structure: Structured as a NNN lease, the investment offers a passive
ownership profile with the tenant responsible for taxes, insurance, & maintenance,
resulting in predictable cash flow & minimal landlord responsibilities.
• Medical-Grade Buildout – Significant Tenant Investment: The facility includes
medical-grade plumbing and in-wall oxygen infrastructure, along with
PROPERTY & LEASE HIGHLIGHTS
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surgical suites, treatment areas, and specialized veterinary improvements.
This substantial tenant buildout creates high barriers to relocation and
reinforces long-term site commitment.
• Brand New Roof (2025): The roof was fully replaced in 2025, significantly
reducing near-term capital expenditure risk and enhancing overall
property condition.
• Potential Value-Add/Development Upside on 1.12-Acre Lot: Situated on
a sizable 48,787 SF (1.12-acre) parcel, the property offers meaningful longterm optionality. Buyer to verify, but the lot configuration may allow for
the construction of an additional ±4,000 SF building, presenting future
expansion, redevelopment, or additional income potential — a rare valueadd component for a stabilized, corporate-backed veterinary NNN asset in
California. The surplus land provides flexibility that is increasingly difficult to
find in stabilized healthcare investments.
• High Barriers to Relocation: Veterinary hospitals require extensive & costly
infrastructure, including surgical suites, imaging, dental stations, plumbing
systems, & oxygen lines. Combined with established client habits &
geographic convenience, these factors strongly incentivize long-term tenancy.
• Recession-Resilient Medical Use: Veterinary services are considered essential
and non-discretionary, driven by recurring wellness visits, diagnostics,
procedures, and preventative care — historically demonstrating resilience
across economic cycles.
• Strong Presence Along N Blackstone Street: The property benefits from
frontage on N Blackstone Street, a primary commercial corridor in Tulare,
offering strong visibility and convenient access