137 Palo Alto Rd 8,272 SF Health Care Building Offered For Sale in San Antonio, TX 78211

Jennifer Stein Real Estate Inc., in conjunction with Zeustra Healthcare Real Estate Advisors – Out-of-State Cooperating Broker, is pleased to present the exclusive opportunity to acquire 137 Palo Alto Road in San Antonio, Texas—a fully renovated, single-tenant medical facility totaling 7,448 square feet, leased to U.S. Renal Care, Inc., one of the nation’s largest and most established dialysis providers with more than 400 locations nationwide. The property is backed by a corporate guarantee and benefits from a 15-year absolute net lease, providing investors with long-term, predictable cash flow and zero landlord responsibilities.
The lease extends through April 30, 2040, featuring 2% annual rent increases through March 1, 2032, followed by 3% annual increases thereafter, ensuring consistent income growth and a built-in hedge against inflation. U.S. Renal Care has operated successfully at this location since 2012, serving as a mission-critical facility for the local patient base. In 2025, the tenant completed an extensive nearly $1 million renovation—fully funded by the tenant—encompassing structural, site, and interior modernization, including foundation stabilization, drainage and plumbing upgrades, regrading and resurfacing of parking areas, new flooring and finishes, and full repainting inside and out. This significant tenant investment highlights a deep, long-term commitment to the location and reinforces the facility’s operational strength and longevity.
Strategically positioned in San Antonio, one of the fastest-growing metropolitan areas in the United States, the property benefits from strong demographic and economic momentum, robust population growth, and expanding healthcare infrastructure. San Antonio’s diverse economic base and sustained in-migration continue to drive healthcare demand, positioning this facility within a dynamic and resilient market.
From an investment standpoint, this property combines the security of a long-term, corporate-backed lease with the benefit of consistent rent growth and capital appreciation potential. Compared to static-income assets that may offer higher near-term yields but limited long-term upside, the structured rent escalations embedded in this lease compound value over time—enhancing both income and exit potential. This balance of durable cash flow and intrinsic growth offers investors a compelling opportunity to achieve long-term value creation, inflation protection, and portfolio stability.
In summary, 137 Palo Alto Road represents a best-in-class, mission-critical healthcare investment, pairing a proven operator’s decade-long success and renewed commitment with an institutionally maintained facility in one of Texas’s most vibrant growth markets.