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Category: Case Study, Healthcare Tags: Healthcare, Sale Leaseback
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Property Profile

$2,250,000
Women's Specialty Associates - Grand Blanc, MI
Cap Rate
8.00%
Leasable Area
7,958 sq. ft.
Year Built
2007
Term Remaining
15 Years

Challenge
The owners of Women’s Specialty Associates were nearing retirement and looking to explore different options for their business. After discovering the value in their property, they found the best solution was to execute a sale leaseback. The biggest hurdle the Matthews™ team experienced was having both parties agree on high-level lease terms, intending to keep them in line with the owner’s business and personal plans. On top of that, the property needed to be closed by year’s end, therefore all due diligence had to be completed in less than 30 days during the holiday season.

Strategy
The Matthews™ Healthcare Division was successful in finding a buyer, an investment firm based on the East Coast, quickly thanks to their established connections in the industry. The buyer acquires, owns, and manages single tenant net lease assets across the nation, was looking to add more medical deals to their portfolio. The team had to work through the leasing details such as the lease language and insurance and work hand-in-hand with both the buyer’s and seller’s counsel. Through the help of a sale leaseback transaction, the owners were able to access all liquidated capital from the property immediately and sell the property for significantly more than what the owners originally perceived the property to be worth.

Results
After presenting the opportunity to our first buyer, the seller received a full price offer almost immediately after putting the property on the market. The Matthews™ Healthcare Division’s established relationship with the buyer and gave them a better understanding of their end-goals and aspirations. Both the buyer and seller came to satisfactory terms in this transaction and benefitted tremendously. The sale leaseback relieved the seller of all ownership responsibilities, allowing them to focus on their retirement.

Testimonials
“As sellers of the property, we initially just wanted to find out what the market value was for our property. We were looking to see if there was more value in selling than holding onto the property. Even when we got the initial offer, we did not believe we could get that amount for our office. We had the office appraised prior to the sale because we had to buy out a partner, and when we got the offer, it was more than the appraised price, so we looked long-term and felt that it was the best thing to do financially.”

“I am nearing retirement, and for me, this was just added capital to my nest egg, so it was an easy choice. Overall, it worked well for my partner and me, we have to get used to the idea that we no longer own our building, and we will be renters.”

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