Aspen Dental TENANT OVERVIEW


Pros

  • Strong rent escalations
  • Longterm initial lease terms
  • Industry leader

Cons

  • Some NN leases
  • Privately owned

Tenant Description

Aspen Dental Management Inc. is a dental support organization that provides business support and administrative services to dental practices around the country. The company was founded in 1998 by Robert Fontana and is headquartered in East Syracuse, New York.

Over the past few years, Aspen Dental has pursued an aggressive growth strategy. The company targets new locations located in super-regional retail areas. In 2020, the company forecasts that more 800 branded practices will service 5 million patient appointments. Pre-covid, Aspen Dental was expecting to open 75 new retail locations that targeted demographic groups most in need of access to care.

Aspen Dental retail locations typically range from 1/2 - 4/3 of an acre in size and trade for around $540/sqft. In the past, the company has signed Fee Simple deals with lease terms ranging between 10 and 20 years.

Average Cap Rate
6.47%
12 mo avg with 10+ yr lease term
Average Property & Lease
Average Sale Price $1,900,000
NOI $126,800
$/Square Foot $540
Building SF 3,500
Lot Size .50 - 1.30 Acres
Lease Term 10 - 20 Years
Escalations 10% Every 5 Years
Stock Symbol N/A
Credit Rating
S&P N/A
Moody's N/A
Average Cap Rate Trend
6.67%
2019
6.35%
2020
Rates reflect last 12 mos, short and long-term
Recent Sales Comps
Kansas City, KS 6.25%
Topeka, KS 6.25%
Texarkana, TX 6.50%