The global ambulatory surgical centers market growth is being fueled by the rapid shift toward outpatient procedures, favorable reimbursement policies, and the increasing emphasis on cost-effective, value-based healthcare delivery.
Kaufman Hall & Associates, LLC (“Kaufman Hall”) was selected as the exclusive financial advisor to AW Property Co. (“AW”) related to securing debt financing for the acquisition of a nine-building, 348,416 square foot medical office portfolio located in Georgia (“Georgia Portfolio”) and a previously acquired two-building, 33,154 square foot medical office asset unencumbered by debt located in Florida (“Florida Asset”).
The eleven on- and off-campus medical office buildings spanning 381,570 square feet are a mix of core, core-plus, and value-add assets. Much of the Georgia Portfolio is affiliated with a dominant, physician-owned, multi-specialty clinic in the region. AW acquired the Georgia Portfolio on an off-market basis through an existing relationship.
On behalf of AW, Kaufman Hall undertook a competitive process to secure debt financing for the Georgia Portfolio and the Florida Asset. Kaufman Hall approached a diverse pool of debt providers that had prior medical office building experience or were seeking entry into the sector. Based on Kaufman Hall’s efforts, AW’s track record, and the quality of the opportunity, attractive proposals were received from debt providers, despite a challenging capital markets environment. Ultimately, AW selected a well-established national commercial bank as the lender.
HREA | Healthcare Real Estate Advisors is pleased to announce the successful sale of a 40,000 SF Class “A” Physician-Owned Medical Office Building located in the greater Dallas/Fort Worth MSA.
The Class “A” medical office building was recently developed to consolidate multiple physician practice groups and ancillary services into one location. With 14 practice groups, the property provides patients with convenient access to a variety of specialties and services, including ENT, orthopedics, gastroenterology, pain medicine, family practice, and physical therapy.
HREA structured the transaction as a Hybrid Sale-Leaseback, which allowed the existing physician-owners to continue to own 24% of the building in a tax-deferred manner and achieve a valuation multiple of over 16 times. As a result, the physician-owners were able to get both liquidity in the form of distributions, as well as physician-ownership alignment between the practice (Opco) and the real estate (Propco).
Source: HREI
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