Heartland Dental

Heartland Dental – Single Tenant Net Lease Investment
Hobbs MSA, NM | Freestanding Dental Office | Absolute NNN Lease | Passive Income Opportunity

This offering presents a purpose-built, standalone Heartland Dental clinic situated in Hobbs, New Mexico, within the Hobbs Metropolitan Statistical Area. The property is occupied under a long-term absolute triple-net (NNN) lease, requiring Heartland Dental to cover all property-related expenses—property taxes, insurance, maintenance, structural repairs, utilities, and landscaping. Scheduled rent escalations occur every five years, ensuring a growing return. With no landlord obligations, this asset offers a truly passive income stream, ideal for investors seeking net lease investment properties, single tenant net lease medical/dental assets, healthcare-anchored NNN lease investments, and 1031 exchange-eligible properties in smaller yet economically diverse markets.

Investment Highlights

• Leased to Heartland Dental under a long-term absolute NNN lease
• Tenant assumes full responsibility for all facility and operating expenses
• Scheduled five-year rent escalations provide inflation protection
• Modern, stand-alone dental office of approximately 3,500–5,000 square feet
• Positioned on a primary signalized arterial road in Hobbs for strong visibility
• Ample parking with ADA accessibility and convenient patient drop-off
• Located adjacent to retail, medical offices, banks, schools, and service retailers
• Suitable for passive-income seekers, healthcare asset allocators, and 1031 exchange users

Tenant Overview
Heartland Dental is one of the largest Dental Support Organizations in the U.S., partnering with affiliated dentists operating under professional clinical standards. The company provides extensive administrative, operational, and marketing support, allowing dentists to focus purely on patient care. Heartland clinics operate under long-term lease commitments and consistent occupancy, making them attractive to investors seeking reliable healthcare tenancy and predictable cash flow.

With an absolute NNN lease, Heartland Dental is wholly responsible for maintaining and operating the facility—from HVAC, roof, and structural integrity to parking lot care, landscaping, utilities, insurance, and taxes. The lease also includes structured, five-year rent escalations and multiple renewal options, supporting tenant longevity and investor income assurance.

Lease Summary

• Lease Type: Absolute Triple-Net (NNN)
• Term Remaining: Approximately 10–15 years
• Escalations: Scheduled every five years
• Renewal Options: Multiple five-year extensions
• Landlord Responsibility: None

This lease structure guarantees passive, inflation-aligned income with minimal ownership oversight.

Market Overview – Hobbs MSA
Hobbs, located in southeast New Mexico near the Texas border, serves as the economic hub of Lea County. The metropolitan area’s economy is diversified, including energy (primarily oil and gas production), healthcare, retail, education, and agriculture. Due to its energy-driven economy, Hobbs experiences economic fluctuations. However, the demand for essential healthcare services—including dental care—remains consistent across economic cycles.

The regional population is approximately 60,000–70,000. The density of clinics and healthcare providers is limited, especially in freestanding formats, making this property a highly strategic investment. With growing families, professionals, retirees, and essential-service households, dental needs in Hobbs are steady throughout the year.

Site and Location Features

• Custom-built Heartland Dental facility with modern clinical finishes
• Monument and building signage visible from a major signalized roadway
• ADA-compliant parking and patient drop-off access
• Dual points of access for ease of patient entry and exit
• Surrounded by service anchors: grocers, medical offices, pharmacies, schools, and banks
• Positioned at the entrance to expanding residential areas

These attributes facilitate patient access and support site performance—critical elements in dental tenancy success.

Trade‑Area Demographics
Within a five-mile radius:

• Population: Approximately 60,000–70,000 residents
• Median household income: In line with regional averages, supported by energy, healthcare, government, and retail industries
• Employment sectors: Energy/oil & gas, healthcare, public services, education, retail
• Mix of demographics: Families, working professionals, retirees, and service-industry workers
• Residential growth: Both new housing developments and existing neighborhoods

These factors underpin stable, routine dental demand—from routine cleanings and exams to specialty services like implants and orthodontics.

Demand Drivers and Tenant Performance

• Consistent necessity-based dental services provide reliable revenue
• Heartland’s recurring-care service model enhances patient retention
• Sparse competition in freestanding dental facilities enhances market share
• Economic stability, even during energy cycles, supports healthcare continuity
• Demographic growth—including retirees and families—bolsters long-term demand

These dynamics contribute to strong clinic performance and tenancy security.

Income Escalations & Return Characteristics
The lease’s five-year escalations support net operating income growth and maintain value in inflationary environments. Since Heartland covers all operational and capital expenditures, landlord income remains consistent and unencumbered—vital for underwriting, lending, and long-term portfolio stability.

Ideal Buyer Profile
This investment aligns with:

• 1031 exchange investors seeking stable replacement properties
• Private owners or family offices pursuing passive income with minimal oversight
• Institutional and REIT buyers building healthcare-focused NNN portfolios
• Conservative investors prioritizing credit-backed tenancy and defensible assets
• Portfolio managers targeting medical/dental real estate for defensive diversification

The property’s lease characteristics, tenant strength, and trade-area specifics meet the criteria of many investors.

Healthcare NNN Asset Trends
Healthcare and dental net lease assets—especially freestanding and absolute-NNN—are in high investor demand due to their recession resilience, necessity-based tenancy, and site functionality. Heartland Dental’s standardized, corporate-backended model heightens these attributes. In markets like Hobbs, where freestanding dental offices are limited, availability becomes a scarcity moat, bolstering asset value.

Conclusion
This Heartland Dental in the Hobbs MSA offers a high-quality net lease opportunity featuring credit-backed healthcare tenancy, absolute triple-net structure, rent escalations, and a modern clinic located in a defensible market. With passive income and no landlord responsibilities, it fits investor profiles seeking net lease investment properties, healthcare-anchored assets, or 1031 exchange-eligible real estate. It is a strategic addition for any investor targeting reliable, medical-oriented investments in stable, small to mid-sized U.S. markets.