155 28th St NE
Owatonna, MN 55060
Dakota Valley Oral · Office Property For Sale

Marcus and Millichap is pleased to present for your acquisition review the Dakota Valley Oral and Maxillofacial Surgery Center located in Owatonna, Minnesota. The Class A 3,100 square foot building was built in 2014 and is positioned on about 1.11 acres just off Northwest 26th Street and down the street from the Interstate 35 exit. The heart of Owatonna sits just south of the subject property, surrounding the intersection of Interstate 35 and Old U.S. 14. This corridor is home to a number of large big box retailers including Walmart, Kohl’s, Lowe’s, Target, Fleet Farm, Harbor Freight Tools, Cash Wise Foods and more. It is also a very dense industrial warehouse area with tenants like Viracon, Pearson, Wenger Corporation, Bosch Automotive, Daikin, Napa Auto Parts and FedEx Freight. The Owatonna Hospital is less than 2 miles away and the Owatonna Degner Regional Airport is about 2.5 miles away, both of which help fuel the daytime traffic in this area. Owatonna is about 63 miles outside of Minneapolis and is also positioned near several major markets including Rochester, Albert Lea and Mankato. Dakota Valley signed an original 15-year lease commencing on September 22, 2014 and set to expire September 22, 2029, leaving about 9.75 years of lease term remaining. There are rare rent increases every five years including in the base term and in the five-year renewal option that is available. The lease is classified as modified triple net, with the landlord being responsible for the roof and structure and the tenant reimbursing for all common area maintenance, taxes, and insurance expenses and reimbursing for admin income as well. An incoming investor also has the ability to add 6,900sf of additional office space on this oversized parcel. Dakota Valley Oral and Maxillofacial Surgery has grown to now having 5 locations across Minnesota and has been ranked as one of the state’s top dentists. Dakota Valley’s lease is guaranteed by U.S. Oral Surgery Management or “USOSM”, which is one of the fastest growing oral surgeon networks in the United States.