The challenges physicians face with their practice real estate are often underestimated, Collin Hart and I hope you find our insights invaluable.
There are many minor details in a lease that can change the value of a physician's real estate by millions of dollars (literally).
With many physician-owned practices partnering with private-equity-backed MSOs and health systemsfor succession planning and growth; it gives physicians an opportunity to re-state their lease. This allows physicians an opportunity to exit their real estate at a premium value.
The challenge here is that improperly writing your lease can make a physician's real estate illiquid, or prevent it from being sold at a premium value.
There are many lease terms that are very valuable to a potential real estate buyer and therefore valuable to the physicians. When physicians are negotiating their lease during their practice's buyout, they have leverage to negotiate these terms into their lease with the new partner.
Some finer details like 1) what entity is being used for the tenant, 2) what are the annual rent escalations, 3) is there financial reporting available, 4) which party is responsible for repairs, etc, can have a major impact on value.
If you're a physician that will be entertaining a partnership with a private-equity backed MSO, please call us to ask for guidance.
It pains me to see physicians make minor mistakes that prevent them from selling their building. We can often find ways to fix them, but it's best to seek our guidance prior to all lease negotiations. I hope you find this series helpful.
#physicians #healthcarerealestate
Are you ready for a peek behind the curtain to learn about the real challenges physicians face with their practice real estate?
ERE Healthcare Real Estate Advisors is excited to introduce brand new video content that delves into practical topics surrounding our clients' partnership situations.
This week Marc Flynn and Collin Hart dissect a recent transaction surrounding a dermatology facility in East Texas. Discover how ERE played a pivotal role in their lease renegotiation during and after a corporate transaction.
Stay tuned for some truly insightful real-life stories!
https://lnkd.in/evFFv2xv
#casestudy #donedeal #teamwork #saleleaseback #privateequity #dermatology
Director of Physician Recruitment committed to making great connections between physicians and exciting Dermatology opportunities!
1moSo excited you're on the team Maddy!!