Fresenius Medical Care West Valley City4101 Pioneer Parkway West Valley City, UT 84120
Sales Price: 5,828,000
Cap Rate 5.73%
The owners of the Fresenius Medical Care clinic developed a 9.655 square-foot dialysis clinic with two tenants, a clinic and the doctor’s office. The property was built on a hospital campus in an up-and-coming part of Salt Lake City. The developer decided to dispose of the asset upon completion of construction and upon acquiring the Certificate of Completion. Once sold, the strategy was to reinvest the capital into their next development project. The Team executed a marketing plan which resulted in multiple offers.
Based on its prime location and a thorough analysis of sales and rent comparables, the Dialysis Real Estate Team listed the property at over $6,000,000 at a 5.73% cap. They initiated a clear marketing strategy and secured a buyer through an outside broker. The buyer was in the middle of a 1031 exchange and was willing to pay the highest price for the property. The team negotiated the terms of the deal and ensured a closing date that would satisfy the 1031 requirements of the buyer.
Once the construction had completed and the Certificate of Occupancy had been delivered, there was an additional 90 day waiting period for the construction costs to be verified and tabulated. The construction estimate had come in lower than expected, which kept the cap rate constant and lowered the sales price from over $6,000,000 to $5,828,000.