Aspen Dental

Aspen Dental – Single Tenant Net Lease Investment
Dothan MSA, AL | Freestanding Dental Office | Absolute NNN Lease | Passive Income Opportunity

This investment offering features a freestanding Aspen Dental office located in the Dothan metropolitan area of Southeast Alabama. The property is leased under an absolute triple-net (NNN) structure, which places full responsibility for property taxes, insurance, maintenance, structural repairs, landscaping, and utilities on the tenant. The lease includes rent escalations every five years, delivering a passive income stream secured by income growth and tenant accountability. With zero landlord obligations, this asset aligns with investor goals such as net lease investment properties, NNN properties for sale, single tenant net lease healthcare assets, and long-term passive income in stable secondary markets.

Investment Highlights

• Leased to Aspen Dental under a long-term absolute NNN lease
• Tenant responsible for all property-level costs
• Scheduled rent escalations every five years to enhance cash flow
• Freestanding, purpose-built 3,500–4,500 sf medical/dental facility
• Positioned on a signalized corner or high-traffic corridor in Dothan
• Ample parking with dedicated stacking and patient access
• Located near grocers, medical clinics, restaurants, banks, and regional employers
• Ideal for investors seeking passive income, 1031-exchange compatibility, and healthcare tenancy

Tenant Overview

Aspen Dental is one of the country’s largest dental services organizations, offering both routine and specialized treatments—such as general dentistry, implants, dentures, and orthodontics. Its DSO model provides administrative, marketing, and operational support while maintaining independent dentist ownership. This professional management model ensures high tenant quality and consistent revenue.

Operating under an absolute NNN lease, Aspen Dental assumes all responsibilities for the building’s condition and site maintenance. The lease’s structured escalations—usually fixed or CPI-linked—support long-term income growth. Multiple renewal options provide continuity, extending the tenant commitment and increasing investor security.

Lease Summary

• Lease Type: Absolute NNN
• Lease Term Remaining: Approximately 10–15 years
• Rent Escalations: Every five years
• Renewal Options: Multiple five-year extensions
• Landlord Obligations: None

This structure supports predictable income, minimal oversight, and clear financial modeling.

Market Overview – Dothan MSA

The Dothan metropolitan area serves as a regional economic hub for Southeast Alabama and parts of neighboring states. With a population near 150,000 in the metro and over 70,000 within a five-mile trade area, Dothan’s economy is anchored by healthcare, retail, agribusiness, education, and service industries. Major employers include a regional hospital system, higher education institutions, large retailers, and government operations.

Rapid suburban growth is complemented by stable rural demand, creating a diversified trade base. As the region continues to attract families and professionals, demand for dental services is expected to grow. Dothan’s limited supply of standalone medical properties adds value to this asset and enhances lease stability.

Site Features

• Stand-alone dental office with modern exterior and interior design
• Parking for 20–30 cars with accessible stacking lanes
• Dual ingress/egress from major roads or a signalized corner
• Clear signage and brand visibility under Aspen Dental
• Adjacent to grocery anchors, QSRs, banks, medical clinics, and pharmacies
• Positioned for both commuter and local neighborhood access

The site layout is optimized for patient convenience and operational efficiency, fostering lasting tenancy and steady revenue.

Trade Area Demographics

Within a five-mile radius:

• Population between 65,000 and 80,000 residents, with steady growth
• Median household income above regional averages
• Employment base includes healthcare providers, school systems, retail, and public services
• A blend of homeowners, renters, professionals, students, and retirees
• Residential expansion via single-family and multifamily developments

These indicators support demand for dental services and reinforce the asset’s investment quality.

Healthcare Demand Drivers

Key factors promoting clinic utilization include:

• Steady population growth boosting healthcare needs
• Dothan serving as a medical hub for surrounding rural communities
• Ongoing demand for routine and specialist dental care
• Insurance reimbursement and self-pay economics supporting profitability
• Supply constraints in regional dental office stock

These demand drivers underpin Aspen Dental’s performance and lease durability.

Rent Escalations & Income Growth

Every five years, rent escalations are applied to protect against inflation and support NOI growth. Under absolute NNN terms, the landlord retains a clean income stream free of expense volatility. This structure is favored by passive investors seeking stable returns and well-structured exit potential.

Ideal Buyer Profile

This Aspen Dental asset is well-suited for:

• Investors executing 1031 exchanges who need passive, income-producing assets
• Private or institutional buyers targeting healthcare-focused net lease portfolios
• Family offices seeking tenant-backed real estate with minimal oversight
• REITs and funds focusing on defensive NNN assets in secondary markets
• Conservative investors looking for income clarity and long-term stability

The combination of triple-net structure, tenant quality, and demographic fundamentals makes this a fit for buy-side mandates targeting stable net lease returns.

Southern Healthcare NNN Market Trends

Medical and dental properties have emerged as preferred investment targets due to their recession resilience, necessity-based tenancy, and reuse flexibility. Aspen Dental’s credit profile and recurring patient model increase its appeal to both private capital and institutional investors.

Supply constraints—including scarcity of freestanding medical build-to-suits—further enhance valuations and long-term investment support for assets like this one.

Conclusion

This freestanding Aspen Dental property in the Dothan MSA brings together a national-brand healthcare tenant, absolute NNN lease structure with rent escalations, strategic site placement in a high-growth regional trade area, and passive income with no oversight obligations. It suits a range of investor types—from 1031 users to REITs—seeking stable, credit-backed investment properties.

This asset represents a compelling opportunity for portfolios focused on net lease investment properties, healthcare NNN lease investments, or defensive real estate strategies in secondary markets of the Southeast.