AEI Healthcare Portfolio 2
This is a sample of a Delaware Statutory Trust offering, drawn from a past offering that is already fully subscribed and shown here for illustration. DSTs are illiquid private placements offered under Reg D to accredited investors only. The figures below are sourced from the sponsor’s Private Placement Memorandum. Year-one cash-flow, cap-rate, and DSCR figures are projections, not guarantees. Loss of principal is possible.
About this offering
AEI Healthcare Portfolio 2 is an all-cash investment into three medical office buildings located in three different states. The tenants are BioLife, DaVita, and Fresenius Medical Care.
Key metrics
- Year 1 Cash Flow
- 5.14%
- Year 1 Cap Rate
- 5.15%
- Investor Purchase Price
- $15.66M
- Year 1 DSCR
- —
- Hold Period DSCR
- —
Debt structure
- Loan Amount
- —
- Lender
- —
- Program
- —
- Interest Rate
- —
- LTV
- 0.00%
- Term
- —
- Interest Only
- —
- Amortization
- —
Specifications
- Occupancy
- 100.00%
- Strategy
- Owned free and clear with no debt, which eliminates refinance and foreclosure risk.
Market analysis
- Population
- 16,000 within a 5-mile radius (Grand Rapids, MN property)
Principal risks
- R01The DaVita and BioLife properties are located in major cities and are therefore exposed to increased competition in their local markets.
- R02The Fresenius Medical Care property in Grand Rapids, MN is in an area of very low population, with only 16,000 people within the 5-mile radius.
- R03The closest competing dialysis center is over 32 miles away from the Grand Rapids property.
- R04As the remaining lease term on the properties decreases below 10 years, the value of the properties may decline.
- R05DaVita is a non-credit tenant located in Missouri, a Certificate of Need state with the 17th-highest obesity rate in the US.
- R06The cap rate to investors is low (5.15%) and lower than comparable properties in the areas (6.03%).
- R07Each property has a non-operation clause, allowing the tenant to cease operations at its discretion.
Property imagery
AEI
According to the sponsor's website: "Founded in 1970, AEI brings more than 40 years of professional expertise to the management of its net lease property investment funds. AEI Funds are created for investors seeking the opportunity for stable income, low volatility, reduced risk, and capital appreciation. For investors who wish to own entire properties, AEI offers a large portfolio of attractive net leased, income-producing real estate from which to choose. Net leased properties are especially suitable for tax-advantaged 1031 exchanges. AEI began offering tenant-in-common (TIC) interests for IRS 1031 tax-deferred exchanges in 1992 and was the first investment firm in America to obtain a favorable IRS private letter ruling with respect to its TIC offerings."
Explore current offerings like AEI Healthcare Portfolio 2
This offering is fully subscribed and shown for illustration. A coordinator can introduce current offerings with a similar profile to accredited investors.