ERE Healthcare Real Estate Advisors (“ERE”) is pleased to announce the successful sale of a 34,090 SF comprehensive retina and dialysis portfolio. The anchor tenant specializes in the medical, surgical and laser treatment of retinal, vitreous, and macular diseases and is one of central Florida’s leading specialty practices, along with being nationally recognized as a retinal research center.

Over time, incoming partners had continued interest in buying into the practice, but the real estate was a less appealing proposition; either they shunned the additional debt or preferred to diversify their capital into other more liquid investments.  This left CRMD’s founding physician partner as the sole owner of the real estate, creating a misalignment in interest.

To compound the effects of individual ownership, the founding partner had recruited other tenants to occupy the building over time, helping to fill vacancies.  Still, this created complications related to building operations, management, and lease structuring, which resulted in the assets not being properly positioned for a premium sale.

ERE was engaged to help stabilize the assets, with the goal of allowing the physician to exit their assets at a premium value.  The engagement included a deep dive in terms of restructuring the leases and validating financial records to more broadly appeal to prospective real estate investors.  ERE then began a targeted marketing process (as compared to it’s typical broad approach) in order to meet the client’s objective of effectuating a closing before year-end.

Despite a volatile interest rate environment, ERE generated five qualified and competitive offers, ultimately negotiating to achieve the best price and guide the client towards a buyer with the highest certainty of execution.  Embracing the complexity and attention to detail required to reposition the assets, the ERE team succeeded, ultimately transacting the Class-A assets while also helping bring the physician founder’s exit strategy to fruition.

The transaction was led by Collin Hart and Andy Matti.

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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.