To maximize the value of your surgery center real estate, consider selling and leasing back the property, which will free up capital while maintaining control over the facility. A well planned sales strategy involves understanding market value, targeting the right buyers, and utilizing a healthcare real estate broker for assistance.
- Valuation:
- Understand Market Value and Target Buyers: Get a professional valuation of your surgery center, including the real estate and the business (if applicable).
- Potential buyers include healthcare REITs, private investors, private equity firms, and other real estate investment companies.
- Larger properties (10,000 sq ft or more), well-located in affluent areas, and fully leased with strong tenants are generally more attractive to buyers.
- Prepare for the Sale Process:
- Ensure you have a lease agreement that is attractive to potential buyers, typically with triple-net arrangements and long-term lease commitments.
- Buyers will want to see your financial statements, so ensure they are up-to-date.
- Develop a marketing strategy with a healthcare real estate broker to reach the right buyers.
- Maximize Value Through Strategic Approaches:
- Sell and Lease Back: Consider selling the real estate while leasing it back, which allows you to retain control of the facility while freeing up cash.
- Partnerships: Explore partnerships with hospitals or management companies to leverage their expertise and access to resources.
- Minority Interest Sales: If your ASC is underperforming, consider selling a minority interest in the ASC business to an investor who can improve profitability.
- Seek Professional Guidance:
- Specialized brokers can assist with valuation, marketing, and navigating the sales process.
- Consult with legal and financial professionals to ensure you understand the implications of the sale and leaseback.
- Key Considerations:
- Lease Stability: Long-term leases with strong tenants are highly valued by buyers.
- Location: Affluent, highly populated areas and locations that benefit from healthcare clusters are attractive.
- Timing: Selling 5-10 years before a key physician is set to retire can enhance the property’s appeal.
- Profits: Understanding how profits will be handled (debt repayment, distribution to owners) is crucial for investors.
By carefully considering these factors and seeking professional guidance, you can effectively navigate the process of selling your surgery center real estate and maximize its value.
ASC physician-owners can obtain fair market value rents, current cap rates, and valuations for their ASC business and real estate by contacting Jon Vick at 760-291-7745 or Jason Winokur at 914-216-3574.
Since 1998 we have advised ASC physician-owners on sale-leaseback of ASC real estate, and strategic acquisition transactions for over 500 physician-owned ASCs, endoscopy centers (ECs) and surgical hospitals. ASC/MOB real estate expert and broker JH Winokur, Inc. specializes in ASC and EC real estate sales and leasebacks, ASC/MOB valuations, and 1031 exchanges.
More information can be obtained from:
- Jason Winokur at [email protected]
- Jon Vick at [email protected]
- Or at: www.ascrealty.com
