Summit Medical Group - Multi-Specialty Practice Group
Stan Johnson Company's Toby Scrivner, partnered with another SJC broker, an industrial specialist, to assist a valued developer client of our company by evaluating the market potential of the subject property and presenting a plan to market and facilitate sales process.
Stan Johnson Company assisted the client with feedback towards the end of the lease negotiations and construction process. The feedback provided was instrumental in helping the client to structure an investment that would have tremendous appeal to the net lease marketplace.
As the construction phase neared completion and the lease commencement date approached, the SJC team started the marketing stage of our process. Believing that the tenant’s strong financials, dominant regional footprint, and unique location of the property would be attractive to healthcare investors, an aggressive asking cap of 5.25% was set for the property. At the time of this transaction, multi-tenant medical properties were trading at an average cap rate in the 7.00% range. Our knowledge and working relationship with the top healthcare real estate buyers in the country enabled us to generate multiple offers within 30 days of the listing agreement being signed. Five different buyer groups were identified as showing the strongest interest, and we worked closely with these buyers to aid them through additional underwriting of the investment, which was part of a complex master-planned development project. We generated increased offers from each of the buyers and worked with the seller to narrow the prospective buyers down to a top two. At this stage, we negotiated final deal points that were important to our client, during which one buyer rose to the top and was chosen by the seller. During the transaction management stage of the process, we monitored the buyer’s underwriting and held the parties accountable. The transaction reached a successful conclusion, closing 124 days from the date the listing agreement was signed, at a cap rate within 25 basis points of our asking price.