Midtown Medical Plaza | Multi-tenant Medical Office Building in Fort Worth, TX
The assignment was to assist Ridgeline Capital Partners in the evaluation of the potential disposition of the Midtown Medical Plaza in the Hospital District of downtown Fort Worth, TX. After being put through a competitive Request for Proposal, Stan Johnson Company’s Toby Scrivner and team won the assignment due to our understanding of the asset, our aggressive estimated sales price and our access to the pool of buyers willing to pay an aggressive price for this type of asset. The assignment was to help the ownership sell the asset to the most qualified buyer for the best price.
The Healthcare Net Lease Group of Stan Johnson Company began marketing this asset to the known buyers in order to get a baseline sense of where the institutions would value this asset. The Healthcare Net Lease Group had set aggressive pricing expectations with the ownership group, so the majority of the institutional groups were roughly 75 basis points off where it was thought the asset would trade.
We expanded our marketing coverage to include the lesser known buyers, 1031 buyers and external brokers in order to get the opportunity into the hands of the masses. During this time, we had a few offers from institutional investors come in about 35 basis points off where we said it would trade. We advised our client to hold out and let our process run its course. We eventually spoke with a private investor out of California who had recently sold some ranch land and was on a 1031 exchange looking to identify a couple of larger medical office opportunities to satisfy his exchange need. We created a bidding war between the institutional group and the 1031 investor. In a matter of 2 days, we were able to achieve a 40 basis point decrease from the start of the competitive bidding process. We achieved a sales cap rate that almost went beyond our and the seller’s pricing expectations and vastly beat the market by roughly 75 – 100 basis points.
In the end it was a major win for our client. They had purchased the building a year before the sale had occurred and achieved a very high return on their investment. Our competitive bid process drove both investors to their limits on pricing and generated a nice profit for our client. Our client relayed his thankfulness for our work on the disposition, “Thank you for the hard work on it. It produced a great result.”