Elite Care Emergency Center - Free Standing Emergency Department
Since the first emergence of the FSED concept in 2011, Stan Johnson Company has been on the forefront of underwriting this investment property type. With a track record of over a dozen FSED transactions under our belt, Stan Johnson Company had developed a unique understanding of the asset class and of the buyer type to target. Upon signing the listing agreement, Toby Scrivner completed a thorough underwriting of the tenant’s financial performance which allowed us to convey the strength of the operations to prospective purchasers. Scrivner communicated a summary of the unit level performance, along with data which positively supports the long-term viability of the FSED concept within the healthcare delivery spectrum, to prospective buyers whom Stan Johnson Company has cultivated over the years.
Because the FSED concept is still relatively new to the net-lease buyer community, the initial marketing stage will typically take longer than for traditional retail oriented properties. During the first 60 to 75 days of the listing, Toby Scrivner educated buyers on the property and operational performance in an effort to get them comfortable with high price per square foot that matched that was typical of these types of facilities. As offers came in, Scrivner assisted the seller in evaluating the strength of each offer and the credentials of the prospective buyers. Ultimately, a private fund with money specifically allocated for the purchase of FSED investments was selected by the seller. A Letter of intent was executed on June 6, 2015 and the transaction closed successfully 82 days later.