WHAT IS A SALE AND LEASEBACK?

A sale and leaseback is a type of real estate sale in which a practice sells its property for cash and simultaneously executes a long-term lease with the buyer.

WHY A SALE AND LEASEBACK?

This gives physician-owners an opportunity to cash out of their real estate investment while the market is at a peak, but allows them to continue operating long-term, uninterrupted, and with full control of the building.

HOW CAN A SALE AND LEASEBACK HELP ME TODAY?

  • With a long-term lease in place, your facility is marketable as a cash-flowing real estate investment.
  • Valuations for cash-flowing healthcare facilities leased to best-in-class providers have reached historic highs.
  • Monetizing your real estate investment at the top of the market may allow you to pay off debt, eliminate personal liabilities, and create liquidity for your partnership.

CONCLUSION

With advancements in the delivery of care, significant medical school debt, and private equity activity, many physicians are opting to diversify their holdings and grow their wealth.

A sale and leaseback can create liquidity for your partnership, helping to eliminate tension in the ownership or management of your practice real estate, while allowing you to maintain control of the facility for the long term.

If you’re ready to explore the concept or just want to get an idea of the value of your practice real estate, we’re happy to help.

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Investment demand, sale transaction volume, and valuations for healthcare real estate have reached historic highs. Even if a real estate sale doesn’t meet your current objectives, addressing potential partnership challenges early will maximize the value and security of your investment.

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