ERE Healthcare Real Estate Advisors (“ERE”) is pleased to announce the successful sale of a comprehensive ophthalmology facility serving Sterling Heights, MI and the surrounding communities.

The flagship location is home to 4 ophthalmologists, an optometrist, and 50 staff members: a clinical dynasty with roots going back over 45 years.  In addition to the practice, the facility also houses a AAAHC accredited ambulatory surgical center, a prized asset, particularly given the strict Certificate of Needs legislation in the state of Michigan.

ERE was engaged to explore a sale and leaseback with a specific value in mind.  In an effort to support such a valuation and ensure sustainability, ERE conducted a market rent analysis while also comparing the proposed occupancy cost against the practice’s historical financial trends. The resultant value of the property with optimized fair market value rents was significantly greater than the partnership’s recent appraisal. This price point allowed the partners to monetize their practice real estate at a premium, while subsequently providing the junior partner with adequate capital to acquire the senior partner’s business interests.  Through expert guidance and deal structuring, the ERE Team executed the transaction on behalf of the partners, ultimately facilitating their succession planning goals.

The transaction was led by Collin Hart and Marc Flynn.

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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.