Selling the real estate associated with your Ambulatory Surgery Center (ASC) as a physician-owner is a major financial opportunity. Whether you’re looking to unlock capital, transition to retirement, or reinvest in clinical expansion, the right strategy can maximize value while protecting the integrity of the ASC business.
1. Define the Nature of the Sale
As a physician-owner, first determine whether you’re selling:
– The real estate only (with the ASC continuing as tenant)
– A sale-leaseback (you sell and lease the property back to your own ASC)
– Both the ASC operations and the property
Each scenario requires a different approach to valuation, tax strategy, and buyer targeting.
2. Assemble Key Documentation
Prospective buyers and brokers will expect:
– Lease agreement and rent schedule
– Financial performance (expenses, taxes, maintenance)
– Facility licenses and certifications
– Operating history of the ASC
– Photos, site plans, and maps
3. Obtain a Professional Valuation
Hire a healthcare-specific real estate advisor or appraiser. ASC valuations depend heavily on:
– Lease terms (triple-net leases, rent escalators)
– Strength of the ASC (e.g., surgical volumes, physician specialties)
– Demographics and patient demand in your area
– Recent comparable ASC or MOB sales
4. Work with a Specialized Broker
A broker with ASC expertise can structure the deal to highlight the value of physician ownership and ensure confidentiality.
5. Target Qualified Buyers
ASC real estate appeals to:
– Healthcare REITs and institutional buyers
– Private equity-backed surgery center platforms
– 1031 exchange buyers
– Family offices and NNN lease investors
Physician-owned ASCs with stable tenancy often command a premium.
6. Consider a Sale-Leaseback
This structure lets you sell the property while continuing to operate your ASC. Benefits include:
– Access to liquidity without operational disruption
– Tax-advantaged reinvestment or retirement planning
– Securing a long-term lease (10–15 years) for continuity
7. Navigate Due Diligence and Closing
Buyers will assess:
– Title, zoning, and facility condition
– Lease terms and financial stability of your ASC
– Regulatory compliance
Work with a real estate attorney and CPA to manage legal, tax, and compliance aspects.
8. Market the Opportunity Strategically
Professional marketing materials should emphasize:
– Strong tenant (your ASC) with proven performance
– Scarcity of licensed surgical space
– Demographic and referral strength
– Long-term lease commitment from physician-owners
Conclusion
As a physician-owner, selling your ASC real estate is a strategic move that can deliver significant value while keeping your clinical mission intact. With proper planning, experienced advisory, and a competitive process, you can achieve top-dollar outcomes and maintain continuity for your patients and partners.
Physicians can obtain more information about sales and sale-leasebacks of ASC and MOB real estate by contacting Jon Vick or Jason Winokur.