Realizing Maximum Value for your Healthcare Real Estate
We have long understood the importance of ensuring our clients realize maximum value for all of their assets. That is why properly positioning your real estate and making sure there is the appropriate alignment with your strategic assets is imperative when considering any transaction.
For owners who are contemplating selling their healthcare real estate there are many items that need to be considered and fully understood before embarking on the sales process. Not only do these have an impact on the sale of your property, but the value of the business as well.
This is why we have partnered with an industry-leading healthcare real estate advisory firm that specializes in representing leading physician groups in structuring sale and leaseback transactions on their clinical and surgical center real estate. Functioning as a conduit between physician partnerships and institutional real estate investors, the most aggressive buyers in the market.
They are a real estate brokerage, but take an advisory approach, expertly positioning our clients for a real estate sale as part of succession planning surrounding their practice real estate investment.
Real Estate Services
Asset analysis, valuation and opinion on sale
Hold vs. Sell analysis
Sale / Leaseback strategies
Acquisition & Disposition strategies
Tax planning initiatives including the tax-deferred UPREIT and §1031 exchanges
Partial sale and continued ownership
Lease negotiations to maximize control and flexibility
Re-negotiation of current lease(s)
Achieve the Best Financial & Non-financial Outcomes
Five Key Considerations when Considering a Real Estate Sale
Below are items that any physician should consider regarding the sale-leaseback of medical real estate which will help you realize a significantly better outcome when it comes to not only understanding what goes into a successful transaction but how an expert can positively impact each one of these
You will always get a higher sales price when running a competitive process that involves engaging with multiple buyers.
Through the years, our partner has developed relationships and direct access to hundreds of qualified private investors, real estate investment firms, PE backed real estate funds, family offices and REITS who will compete so that you receive the highest price and best terms.
Discussions with buyers that may offer more tenant favorable lease terms.
There is significant negotiation that should go on to ensure that you have a lease that is the best for you and for your future partners who may become responsible for it.
Access to buyers that may offer different types of co-investment in the real estate or tax deferred savings.
There are multiple options aside from simply selling your real estate that should be considered, such as buyers that allow for minority co-equity investment, UPREITs or other tax incentives that can have a very positive financial impact on individual owners.
Discussions with buyers may lead to financing for facility expansion or improvements.
There are many real estate buyers that will also fund building expansion and renovations. Some of these buyers will also fund the cost for additional locations.
Confirm that the terms of the lease and sale are fair and you are receiving the highest possible sale price.
It is imperative that you consider the ramifications of your real estate sale as it relates to potential strategic partnerships. One-sided leases can create roadblocks for the sale of your business. Having the right team with the expertise to know what lease rates and terms could present future challenges can be the difference between a sale-leaseback helping or hurting a future strategic transaction.
A Focused Team with National Experience and Unmatched Expertise
Having a leading Healthcare Real Estate Advisory team as our partner was critically important to us, not only do they offer the finest real estate sales services but they truly act in an advisory capacity with every client and seek to clearly understand their goals and objectives and work with them over time to create the solutions for their individual needs.
Our real estate division has the unique ability to accurately gauge your facility’s value, inspect your property and design an exceptional marketing package. When the time is right they will then market your property to a national network of buyers who are focused on acquiring medical real estate and get our clients the best possible price in a timely and professional manner.
A Collaborative Approach Helps Physician Owners Realize Maximum Value
Physician owners of hospitals and ambulatory surgery centers are evaluating partnership and sale opportunities to unlock value from their businesses. Coordinating operating entity and real estate transactions can maximize total valuation without compromising future growth, especially when the holders of each align post-merger.
However, these joint deals require nuanced handling of financial, operational and real estate factors. Without proper advisors, aspects may be overlooked, risks unaddressed, and lower valuations achieved. Coordinating investment banking and healthcare real estate advisors ensures focus on key priorities:
The collaborative approach identifies the best strategic partner balancing objectives, growth prospects, synergies, expertise and financial compatibilities. Proper due diligence on potential partners is important for long-term sustainability. Overall, physician owners benefit from expert guidance comprehensively representing both operational and real estate negotiations.
What’s Your Practice, Surgery Center or Surgical Hospital Real Estate Worth?
Thinking of selling your ASC business, group practice or real estate? The first critical step is to have a clear understanding of how much your business or real estate is really worth. Physician Transaction Advisors will not only value your real estate but will provide strategic advice on how to increase that value before going to market.
