Aspen Dental

Aspen Dental Management, Inc. (ADMI) is a dental support organization (DSO)— a dental practice management corporation that provides business support and administrative services to contracted dental practices using the Aspen Dental brand. By 2016 Aspen Dental offered services in 33 states with 550 franchised dental facilities that serve over 15,000 patients a day. Its headquarters is in DeWitt, New York, East Syracuse.

In the United States corporate dentistry or corporate dental practices such as Aspen’s represents 30–40% of all dental practices.The United States Senate Committee on Finance, the Pennsylvania Attorney General’s office, Frontline in partnership with the Center for Public Integrity and the New York Times — among others — questioned Aspen’s business model. Concerns included Aspen Dental’s alleged targeting of older, low-income earners with unnecessary and costly services—offering them a finance program without fully disclosing the terms. In 2015 the private equity firm, American Securities led Aspen’s recapitalization in partnership with Ares Management, Leonard Green & Partners and the existing management team.

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S&P Rating: N/R
Moody Rating: N/R

Typical Lease Characteristics

Lease Term: 15 – 20 Years  Years

Lease Type: Absolute NNN  

Lease Increases: 10% Every 5 years 

Lease Extensions: 4-5 (5) Year Options

Lease Guarantor: Corporate and Franchisee

Tenant Overview

Unique business model within the medical instrusty making this tenant less susetible to economic pressures. One important consideration is that each Aspen Dental branded practice is owned and operated by a licensed dentist. An unaffiliated company called Aspen Dental Management, Inc. (“ADMI”) provides administrative and business support services to Aspen Dental branded dental practices. ADMI licenses the “Aspen Dental” brand name to the independently owned and operated dental practices that use its business support services.

ADMI does not own or operate the dental practices, employ or in any way supervise the dentists providing dental care, and control over the care provided is the sole responsibility of the independent practice and the dentists they employ. Services and office practices may vary across dental practices, and patients should contact the dental offices directly for all questions concerning their dental treatment.

Positives:

  • Unique Business Model
  • Less prone to economic pressures
  • Typically Long term leases with increases

Negatives:

  • Relatively new brand
  • Privately owned, having gone through recapitalization in 2015
  • ADMI does not own or operate the dental practices, employ or in any way supervise the dentists providing dental care

Market Snapshots:

On Market Ranges:

# of Properties in set: 2

Price: $1,442,810 - $1,680,630Average: $1,585,500

PPSF: $500 - $590Average: $522

Year Built: 2014 - 2015Average: 2014

CAP Rate Range: 6.19% - 7.14%Average: 6.80%

Size range: 2,639 sq ft - 3,500 sq ft Average: 3,070 sq ft

Last 12 Month Range:

# of Properties in set: 3

Price: $2,027,990 - $2,358,640Average: $2,204,333

PPSF: $522 - $705Average: $629

Year Built: 1992 - 2017Average: 2009

CAP Rate Range: 5.62% - 7.40%Average: 6.61%

Size range: 3,500 sq ft - 3,500 sq ft Average: 3,500 sq ft

Aspen Dental Company Profile

Headquarters Information

Syracuse, New York

Founded in 1964

Company type: Private

Sector: Dentistry

Industry: Corporate Dentistry

# of Employees: 3,000

S&P Rating: N/R
S&P Rating: N/R
No stock information is available for this tenant.
No news available for this tenant.

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