Dedicated to Maximizing Value for Healthcare Providers
The Healthcare Advisory Practice of Cushman & Wakefield’s Capital Markets division has built the foundation of its business advising healthcare providers that both own and practice out of their buildings. We have experience consulting a wide range of ownership structures including private practices, industry-leading physician groups with portfolios of real estate held in partnership by multiple physicians, and health systems looking to monetize non-core real estate.
Our team is engaged by healthcare providers to facilitate real estate dispositions for a multitude of reasons. Recently, the significant amount of consolidation within the healthcare industry has had a positive effect on the value of real estate owned by providers. Oftentimes, as physician groups are acquired by larger practices or health systems, any existing leases are assigned to, and guaranteed by, the acquiring group. This creates a “credit enhancement” which increases the value of the real estate. The earlier our team gets involved in this process, the more value we are able to add.
Other reasons healthcare providers are considering a sale of their real estate include, but are not limited to:
• Raising capital for future growth
• Increasing liquidity and improving credit
• Exiting real estate ownership responsibilities, management, and risks, including potential Stark Law violations
• Partnership succession
• Capitalizing on market values
A vital part of our team’s process includes having a discussion and completing a pricing analysis on what the value of a healthcare provider’s real estate would be under a multitude of transaction scenarios. This includes opening up a dialogue regarding appropriate lease term, lease guarantor, rental increases, renewal options, rights of first refusal, among other key lease components. This analysis is always done at no cost or obligation for any client as we see it as an opportunity to build a relationship, add value, and prove our credibility. Our team is always available for a meeting or an introductory call to discuss the market and disposition process in more detail. Please do not hesitate to contact us.