ERE Healthcare Real Estate Advisors (“ERE”) is pleased to announce the successful sale of a 21,895 SF ASC and ophthalmic clinic, the hub of a five location practice serving the South Jersey region.

Given the evolving preferences of the practice’s younger physicians, only the founding partner had elected to invest in constructing the facility, creating a misalignment of interests.  Capitalizing on frothy market conditions, the practice was deep in negotiations with a private equity suitor and had a closing scheduled in just a few weeks. The private equity partner, who was more focused on establishing what they perceived was a “standard” landlord/tenant relationship, nearly implemented a sub-par lease agreement and therefore a degraded value for the real estate asset.

ERE was engaged to finalize the leases with the practice’s private equity buyer.  With limited leverage given the late involvement, ERE was able to establish a lease with the bare minimum of marketable terms, but those that would still preserve value in a sale.   Through deep experience in the space, ERE was able to secure a real estate investor with an appetite for a tight timeline while also providing high certainty of execution.  In the end, the real estate transaction was closed just after the practice transaction, on an accelerated timeline, and at a strong market value.

The transaction was led by Collin Hart.

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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.