Why Expert Representation Matters

 

As an owner and operator of your real estate, you want to maximize your return while minimizing risk and cost. HREA’s proven marketing process positions your property to attract fully vetted institutional investors that will allow you to achieve the highest valuation without compromising future growth.

Navigating uncharted waters alone can be fraught with peril and unknown risk.

 
 

THE SCENARIO:

The founding partners of a physician-owned ASC and MOB were directly approached by a private equity group. An unsolicited offer of $50M was submitted for the building, with which the partners were initially satisfied.

THE SOLUTION:

HREA was contacted by the physician group to weigh-in on the offer. Although the offer was good, we advised them to run a 4-week discreet marketing campaign to maximize the value. Through a competitive bid process, 15 offers were received from a mixture of private equity groups and REITs. Having the ability to evaluate varying prices and terms, including the tax-deferred UPREIT structure and Hybrid Sale/Leaseback, the physicians were able to monetize the majority of their asset while retaining ownership in the real estate.

THE RESULT:

The property sold for $58M to the initial group that originally offered $50M, an increase of $8 million. By having a competitive marketing process, HREA was able to also significantly improve the terms, including multiple options to extend the lease at fair market value and a lower initial lease rate.

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Seasoned Team