ERE Healthcare Real Estate Advisors (“ERE”) is pleased to announce the successful sale of the Discover Vision Centers (“Discover”) real estate portfolio, consisting of 6 class-A assets located throughout the Kansas City Market. Serving the community since 1973, Discover Vision Centers has strategically grown to its dominant position today as the largest ophthalmology group in Kansas City with 13 ophthalmologists and 19 optometrists. The market leading providers operate from 10 unique locations, including 3 ambulatory surgical centers, encompassing over 100,000 square feet of medical office space. As the practice operation grew, the real estate projects were led and owned by various physician partners.
Further, with varying interests in the practice and real estate partnerships, both groups were exploring a strategic sale of their respective assets. While the practice buyer was the right fit for the partnership, the incumbent real estate buyer was not a fit, ultimately resulting in a stand-still. With no backup options on their real estate transaction and some final lease cleanup remaining to be completed, the practice and real estate partnerships required guidance on transaction structuring and execution.
ERE was engaged to get the transaction back on track, finalize the outstanding lease matters, and explore a strategic sale of Discover’s real estate. Before marketing, the ERE team interfaced with Discover’s private equity partner to enter into fresh leases that would suit both the flexible and ongoing operation of the practice as well as be attractive to prospective real estate investors. From there, ERE conducted a competitive marketing process, ultimately generating 6 offers, to create better pricing power and certainty of execution. Despite varying asset types and lease terms, the transaction closed smoothly, on time, and at an attractive value.
The transaction was led by Collin Hart and Marc Flynn.