NNN DaVita for Sale
For seasoned real estate investors, DaVita triple-net lease properties offer a compelling blend of low management responsibility, consistent income, and strong tenant stability. As a global leader in kidney care, DaVita Inc. is a corporate-backed tenant known for financial strength and a long-standing commitment to operational excellence. These qualities make DaVita single-tenant leased properties a preferred lease type for investors seeking a lease investment with a corporate guarantee, no landlord responsibilities in the renal care net lease market.
Why DaVita Makes a Strong Tenant
DaVita is one of the largest providers of kidney dialysis services in the world, treating over 200,000 patients across a vast network of facilities. With more than 2,800 outpatient dialysis centers in the United States and 321 more in international locations, DaVita has a truly global presence. The company is entirely corporate-owned, avoiding the variability often seen in franchise models. This centralized operational control ensures that all facilities meet the same high standards for quality of care and financial performance.
DaVita has been in business for over four decades and consistently ranks among Fortune 500 companies. This longevity and scale make DaVita a reliable long-term tenant that continues to grow in response to increasing demand for dialysis services, driven by an aging population and rising rates of chronic kidney disease.
Lease Structure and Financial Benefits
DaVita properties are commonly leased on a 15-year NNN lease term, often with built-in rent escalations. These increases typically occur annually at a rate of 2% to 3% or every five years at 10%, providing a built-in hedge against inflation and helping landlords grow their income streams predictably.
The triple net lease structure shifts nearly all operational and capital expenses—including property taxes, insurance, and maintenance—to the tenant. This arrangement significantly reduces the burden on the landlord and makes these properties ideal for investors seeking a guaranteed annual rent with a hands-off experience. In this setup, the investor is only responsible for structural elements, such as the roof and exterior walls. That being said, a newly built DaVita Dialysis center comes with contractors’ warranties, so the property acts like an absolute triple net property in that the responsibility for the roof and exterior transfers to the contractor.
Financially, DaVita NNN properties generate strong and consistent returns. Net operating incomes (NOI) usually fall between $100,000 and $225,000 annually. The typical sale price for these properties ranges from $3 million to $5.5 million, resulting in an average capitalization rate of about 4.89%. The market value is very much dependent on the year built, vehicle per day count (VPD), lot size, and whether it’s in a tax-free state like Texas or Florida. This cap rate is very competitive for medical net lease properties and offers a balance of yield and security.
Low Management and Passive Income
For investors desiring predictable returns without hands-on property management, DaVita NNN properties are an excellent choice. Since DaVita handles maintenance, utilities, and operational issues, the landlord enjoys a passive income stream. This makes these investments particularly attractive for high-net-worth individuals, family offices, and retirement-focused investors who value time and simplicity over active involvement.
DaVita is strategic in choosing property locations. Most centers are located in suburban areas near hospitals, medical office parks, or main arterial roads with a high vehicle per day (VPD) count —locations that attract steady traffic and ensure patient convenience. These areas tend to have strong demographics, such as aging populations and higher incidences of diabetes and hypertension, which correlate with increased demand for dialysis services.
The placement of DaVita (DVA) centers near complementary healthcare providers creates natural synergies and boosts long-term viability. Infill locations within growing suburbs or near major interstates further enhance visibility and accessibility, both critical factors for patient retention and investor confidence.
Financial Stability and Creditworthiness
DaVita’s strong financial performance enhances its attractiveness as a tenant. In 2022, DaVita reported over $28 billion in revenue and a net income of $2.8 billion. The company also boasts a gross annual profit of $3.4 billion and maintains a market capitalization of over $9 billion. These figures underscore its ability to honor lease commitments and provide a stable income to property owners.
DaVita has a credit rating of BB from Standard & Poor’s and Ba2 from Moody’s. While these ratings are below investment grade, they indicate a generally stable outlook and reflect the company’s strong cash flow and market leadership. These ratings help investors assess the financial risk associated with long-term leases.
Understanding Net Lease Advantages
Net leases, especially triple net (NNN) agreements, have grown in popularity among investors seeking predictable, long-term returns. Unlike gross leases, where landlords pay for property expenses—NNN leases shift these obligations to the tenant. This setup provides two key benefits: higher net yields for the landlord and significantly reduced operational responsibilities.
DaVita‘s standard lease agreements typically include clauses that protect the landlord’s interests, such as default provisions, maintenance standards, and requirements for tenant insurance. These elements further mitigate risk and add to the investment’s appeal.
The 4.89% average cap rate for DaVita-leased properties indicates solid income potential. When coupled with reliable rent increases, this structure allows investors to project future cash flows with a high degree of certainty. With consistent NOI growth and minimal expenses, the internal rate of return (IRR) on these investments is highly competitive compared to other asset classes.
Furthermore, the ongoing demand for dialysis services provides a favorable long-term outlook. The aging U.S. population, combined with increased prevalence of lifestyle-related illnesses, supports continued demand for DaVita‘s services and, by extension, its real estate footprint.
Corporate vs. Franchise Model
DaVita‘s corporate ownership structure is a distinguishing factor. Unlike franchise models that can vary significantly in operations and financial stability, DaVita ensures centralized oversight and uniformity. This consistency minimizes risk and enhances lease compliance, giving landlords peace of mind.
Moreover, DaVita’s plans to add over 100 new centers worldwide reflects its aggressive but sustainable growth strategy. This positions the company to adapt to rising healthcare needs while reinforcing its real estate commitments.
Each DaVita site is selected based on rigorous criteria: proximity to population centers, ease of access, local healthcare infrastructure, and demographic trends. High-traffic corridors and visibility to passing vehicles often play a role in site selection, maximizing patient convenience and reinforcing brand recognition.
These centers typically operate long hours, including early mornings and evenings, to accommodate patient schedules. This operational model contributes to steady traffic flow, ensuring ongoing demand for the facility and strong tenant performance.
Final Thoughts
DaVita NNN properties present a well-rounded investment opportunity. Supported by a NYSE Fortune 500 healthcare provider with over 40 years of industry leadership, these properties offer stable rental income, minimal management burden, and strategic locations. With strong financials, long-term leases, and a favorable outlook for dialysis services, DaVita-leased net lease assets are an attractive option for real estate investors looking to enhance their portfolios with dependable, low-risk properties.
Whether you’re seeking a hands-off investment or a secure anchor in your 1031 exchange strategy, DaVita NNN properties deliver a combination of quality, predictability, and long-term value that few assets can match.
Questions about NNN Properties for Sale?
Predictable, long-term income
Minimal landlord responsibilities
A globally recognized tenant with strong demand
Alignment with 1031 exchange strategies