ERE Healthcare Real Estate Advisors (“ERE”) is pleased to announce the successful sale of a 37,900 SF portfolio consisting of 4 ophthalmic assets, both clinical and surgical. The Seller is a comprehensive ophthalmology practice serving the Ohio River Valley region, which includes eastern Ohio (largely Youngstown and Boardman), along with western portions of Pennsylvania and West Virginia. As the dominant provider of ophthalmic care in the region, along with having only one physician owner, the practice was a prime candidate for private equity consolidation.
The founding physician had already engaged an investment banker to explore a strategic sale, selected a buyer, and progressed substantially in the transaction. With a closing in sight, the owner deliberated options on his practice real estate holdings. Understanding that his real estate could command substantial value if secured with properly structured leases, the founder (and investment banker) was in search of the right advisor to lead a transaction (with great sensitivity to the impending private equity closing) and eventually monetize his real estate holdings.
ERE Healthcare Real Estate Advisors (“ERE”) was engaged by ownership to structure the best possible outcome on the 4 owned locations. With ERE’s early involvement in establishing rental rates as part of the practice’s EBITDA calculations, the financial terms had already been agreed upon, which left only the leases to be negotiated. Interfacing directly with the private equity buyer and their counsel, ERE orchestrated the lease negotiation, focusing on the owner’s eventual goal to sell the real estate, but with consideration for the needs of the private equity backed MSO, creating a win-win outcome. The private equity transaction closed successfully and was followed by an immediate real estate sale. Given the varying locations, asset quality, and lease structures, the real estate portfolio had to be sold to separate buyers, resulting in a phased transaction, but was closed successfully, at a premium value, and on schedule.
The transaction was led by Collin Hart and Andy Matti.