THE CHALLENGE

The Eye Institute of West Florida (“EIWFL”) is a partnership of 29 market-leading ophthalmic providers headquartered in Largo, and operating across 6 locations in west Florida. In 2021, EIWFL joined EyeCare Partners (“ECP”), expanding the platform’s footprint in the state, adding 3 additional ambulatory surgical centers, and providing a large capital commitment to fund future growth.

Having assembled and developed their facilities over many decades, the real estate partnership, held by a subset of physicians continued to own the St. Petersburg facility following the sale of the practice. With the practice transaction completed, ownership was left with a standalone real estate asset. In addition, EyeCare Partners’ investment in constructing a state-of-the-art ambulatory surgical center on the second floor of the property materially changed the profile of the asset, raising important considerations around timing, valuation, and overall capital strategy. With roll-over equity, professional income, and rental income all tied to the same platform, the ownership group faced increased concentration risk and limited liquidity.

THE SOLUTION

ERE Healthcare Real Estate Advisors (“ERE”) was exclusively engaged to guide the physician ownership group through the timing and execution of a strategic real estate sale following completion of the new ASC. With the property newly enhanced and ownership concentrated among a subset of physicians, ERE focused on positioning the asset to attract serious, well-capitalized buyers. ERE ran a targeted and discreet Call for Offers process, generating six competitive bids and ultimately identifying an aggressive buyer who delivered a premium price and certainty of closing. The process was efficient and collaborative, providing the physicians with liquidity from the asset while also reducing overall liabilities.

THE ACHIEVEMENTS

  • Monetized the St. Petersburg facility following completion of the new ASC, achieving a premium outcome for the physician owners.
  • Conduct a discreet marketing process to generate 6 qualified offers, ultimately selecting a buyer that exceeded initial pricing expectations.
  • Facilitated the founding physician partners’ goal to diversify their assets, reducing concentration in and dependency on the PE platform.

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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.

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