ERE Healthcare Real Estate Advisors (“ERE”) is pleased to announce the successful sale-leaseback of an ophthalmology facility on behalf of Chico Eye Center, a leading independent ophthalmology practice in Northern California.
Founded in 1978, Chico Eye Center (“Chico Eye”) is a well-established practice with seven providers, serving a broad regional patient base. Two years after completing a newly constructed facility, the physician partners carried significant real estate debt structured as an SBA loan and cross-collateralized with the practice. While no near-term retirements were planned, the wide range of partner ages raised considerations around long-term alignment, liquidity, and future partner integration. The outstanding loan balance also created challenges for future buy-ins and potential succession planning.
ERE was engaged to evaluate and execute a sale-leaseback transaction that would transition the physicians from owners to tenants while preserving long-term stability and manageable overhead. ERE conducted a market rent analysis and reviewed historical financial performance, focusing on rent coverage, sustainability, and partner alignment. Leveraging its experience with physician ownership transitions, ERE structured lease terms designed to unlock real estate value while supporting the long-term health of the practice.
ERE coordinated the payoff of the cross-collateralized SBA loan, managing lender requirements, timing, and closing mechanics within strict constraints. The transaction closed with a private healthcare real estate fund at $494 per square foot, allowing the physicians to monetize the facility, reduce liability, unlock liquidity, and position the practice for continued growth and future partner integration.
The transaction was lead by Collin Hart and Chase Jarrett.
