NNN Medical
For Sale
Contact for pricing
255 E North St, Madisonville, KY 42431
Dialysis facility with a net lease extending through May 19, 2031.
Property Size7,253 SF
Price / SF$275.75
Days on Market151
Property Features for 255 E North St
General Information
Standard status
Active
Size
7,253 SF
Property subtype
Office, Retail
Occupancy
100%
Lease Type
NNN
Investment Type
Net Lease
Net Operating Income
$145,060
Additional Details
Gross Income
$145,060
Building Details
Year Built
2011
Buildings
1
Units
1
Tenancy
Single
Building Size
7,253 SF
Listing Agency:
Peranich Huffman Net Lease Group Dallas
Listed By:
Nathan Huffman · License #TX 553697
Source:
Crexi
Added: Apr 3
Changed: Aug 30
Last Checked: Aug 30 at 6:22PM
Displayed information is deemed reliable but is not guaranteed and should be independently verified. All listing content including descriptions, pricing, images are the copyrighted material of Peranich Huffman Net Lease Group Dallas
Investment Insights
Based on property information with market context.
Built in 2011, this 7,253 SF dialysis facility at 255 E North Street serves as a specialized healthcare property leased to DaVita Dialysis. The net lease runs through May 19, 2031, with DaVita responsible for occupancy-related expenses. Contractual rent increases are set at 2.00% annually, and the agreement includes two additional five-year renewal options. Each option is structured at the lesser of 95% of fair market value or 102% of prior rent, with 2.00% annual increases.
The property is located in an established healthcare corridor anchored by Baptist Health Deaconess Madisonville Hospital, a 410-bed facility. DaVita, Inc. is identified as the tenant and is the parent company of Total Renal Care, Inc., supporting dialysis operations through more than 3,000 outpatient centers across the United States.
The property is located in an established healthcare corridor anchored by Baptist Health Deaconess Madisonville Hospital, a 410-bed facility. DaVita, Inc. is identified as the tenant and is the parent company of Total Renal Care, Inc., supporting dialysis operations through more than 3,000 outpatient centers across the United States.
Key Highlights
- 7,253 SF dialysis facility built in 2011
- Net lease extends through May 19, 2031
- 2.00% annual lease increases
Financial Insights
Estimated NOI and Cap Rate
NOI = area × lease_rate × (100 − vacancy) / 100 × (1 − expense_ratio). Net Operating Income — what the owner takes home each year before mortgage payments and income tax. Effective rent (asking rent minus vacancy losses) minus operating costs (taxes, insurance, maintenance, management).
NOI / Yr
$61,099
Cap rate = NOI / list price × 100. Capitalization rate — annual return on a fully cash purchase, before financing. NOI divided by price. Higher means more income per dollar invested, but usually also more risk or older condition. 5–8% is typical for stabilized commercial property; double digits often signal distressed deals.
Cap Rate
3.05%
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$1,221,980
$1.2M
Cap Rate 7%
$872,843
$872.8K
Cap Rate 9%
$678,878
$678.9K
Market Conditions
NOI Build-Up for 7,253 SF
Vacancy — income lost from leasable area expected to sit empty during the year, subtracted from gross rent.
EGI (Effective Gross Income) — gross rent minus vacancy losses, the realistic income before paying operating costs.
OpEx (Operating Expenses) — recurring costs to operate the property (property tax, insurance, utilities, maintenance, management); excludes financing and capital improvements.
NOI (Net Operating Income) — income a property generates after operating costs but before financing and taxes.
Gross rent
$104.4K $14.40/SF
− Vacancy
−$23.0K −$3.17/SF
EGI
$81.5K $11.23/SF
− OpEx
−$20.4K −$2.81/SF
NOI
$61.1K $8.42/SF
Area
Hopkins County, KY
Vacancy
22.00%
Lease Rate
$14.40 /SF/Yr
Expense Ratio
25.00%
Simulate Cap Rate and NOI
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$1,221,980
Cap Rate 7%
$872,843
Cap Rate 9%
$678,878
Alternative Uses
Best Use
Office B
$872.8K
$763.7K – $1.02M
NOI $61,099 @ 7.0% cap · market cap 3.05%
Second Best
Healthcare Medical
$853.3K
$746.6K – $995.5K
NOI $59,728 @ 7.0% cap · market cap 2.99%
Theoretical Best
Office A
$1.22M
$1.07M – $1.43M
NOI $85,643 @ 7.0% cap · market cap 4.28%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
1,207
Businesses Nearby
Explore this area
Business Placement
Demographics for 42431, KY
26,566
Population
12,569
Households
2.1
Avg Household Size
41
Median Age
20%
College-Educated
88%
High-School Grad
166.7 sq mi
ZIP Area
159
Density / Sq Mi
$57,529
Median Household Income
$37,671
Median Earnings
$858
Median Rent
$151,800
Median Home Value
Market
Vacancy Rate% for Office in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
NNN property - Dialysis facility with a net lease extending through May 19, 2031.
Where is this nnn property located?
The property is located at 255 E North St Madisonville, KY.
What is the asking price?
The asking price for this property is $2,000,000.
What are key features of this property?
This property features: 7,253 SF dialysis facility built in 2011; Net lease extends through May 19, 2031; 2.00% annual lease increases
