Hand To Shoulder Center of Wisconsin - Ambulatory Surgery Center
Stan Johnson Company had the assignment to structure a sale-leaseback that allows the physician real estate partners to achieve three primary goals; allow senior practice partners to cash out equity at a ‘market’ driven price. Secondly, identify a real estate partner that would fund improvements to the facility. (The tenant wanted to add additional operating rooms and accommodate new service offerings within the practice.) And third, eliminate physician personal guarantees from the real estate debt obligation.
The result was to come up with a targeted marketing strategy to the top 50 buyers of this asset/investment type produced immediate interest. Within the first 30 days of our marketing process, we generated substantial verbal feedback for the client and nine written offers. This feedback helped the physician partners better understand how their investment property was viewed by the market and allowed them to focus in on the details of the lease structure that would provide a balance between maintaining a viable long-term cost of occupancy for the practice and maximizing sale proceeds for the real estate partnership. Each offer was then reviewed with the client, and both the offers and the buyers were measured for their ability to achieve the three goals established by the seller. Once measured, we assisted the seller in selecting the top three buyers and responded with a second and third round of counter offers before ultimately making a final selection. Our extensive experience in managing sale transactions involving healthcare properties, and buyers of these properties, allowed us to hold the parties to a tight accountability and closing schedule. The final result was a transaction that achieved all three goals established by the seller and, it was completed within 150 days of the listing agreement being signed.