That means they almost always overlook the near-term option of increasing cash flow, reallocating capital into higher returning assets or expansion efforts, or cleaning up their balance sheet – the strategic Sale-leaseback.
A Strategic sale-leaseback takes both the potential sale of your ASC business and the sale-leaseback of your real estate into account so as to maximize the total value of both assets.
ASC Realty Advisors pioneered the Strategic sale-leaseback model to find innovative ways to offer physician-owners a powerful strategy to unlock the equity in both their ASC business and real estate while maintaining full operational control through a long-term lease.
Most importantly, It allows you to transform the 2-3% annual returns on your medical real estate into operational and financial investments that could potentially earn 10% or more.
The key component in a Strategic sale-leaseback lies in structuring the lease terms. Investors seek stable, long-term returns, typically preferring lease commitments of 7-10 or more years. The longer and more secure the lease terms, the higher the property valuation and sale price.
Some of the near-term benefits of a sale-leaseback are:
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Immediate access to capital
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Capital to pay down debt, expand or renovate the ASC
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Maintain operational control
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Tax benefits
Long-term, strategic advantages include the ability to :
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Lock in favorable lease terms when you have maximum leverage
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Maintain operational control during your remaining practice years
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Create a clear succession plan for eventual practice transition
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Optimize the property’s market value before any strategic practice sale
While we are advising on a strategic transaction, our team will also guide you through every aspect of a real estate sale-leaseback structuring, from initial valuation through lease negotiation and transaction closing. We leverage our deep market knowledge and extensive investor relationships to secure optimal terms that align with your long-term professional and financial objectives.
