Medical Office Sale Leaseback
Ever wonder how your medical practice could benefit from a sale leaseback? If you are a healthcare professional and you also own your office real estate, then a medical office sale leaseback could be a great option when you’re ready to raise capital for business growth, to pay down debt, or to sell your real estate due to a business sale.
We help health professionals unlock their real estate equity.
Advantages of a Sale Leaseback for Health Professionals
If you operate a medical office that also owns real estate assets, there are many great advantages to pursuing a sale leaseback transaction. There are some disadvantages too, so it’s important to be clear on what your business goals are, and these goals should help determine whether a sale leaseback is right for you.
Benefits of a sale leaseback for the lessee/seller
- You could quickly unlock any equity that’s “stored” in your real estate to help grow your practice faster.
- You decrease your overall operational risk when you no longer own the office real estate and that risk now sits with the new owner.
- You can improve the health of your business balance sheet by trading your mortgage (liability) for an asset (cash).
Benefits of a sale leaseback for the lessor/buyer
- They get a lease that is guaranteed by your operating business
- They get a consistent and predictable stream of income for a long period of time
- They get a fair return on their invested capital
As you can see from these benefits, a sale leaseback can be a truly win-win scenario for both you, the health professional owner, and the buyer/investor alike. While there are many details that both parties need to agree on, such as the lease length, monthly payments, etc, the sale leaseback transaction provides many advantages and is a useful tool you should consider if you are looking to raise capital quickly for your medical office.
Medical Office Sale Leaseback Examples
While there are many medical office sale leaseback examples, here are a couple that should give you a clearer picture of why might choose to do a sale leaseback for your office real estate.
Example 1: Urgent Care Expansion
Christina and Brian own and operate two locations of a national urgent care brand in California. They were offered an opportunity to purchase another location in a nearby county. They researched what it would take to finance the purchase of the new location and realized that they would be able to purchase the new location without financing if they raised capital by selling the real estate from their two current urgent care locations in a sale leaseback transaction. This would free up the capital they had built up over the years. This allowed them to purchase the new location without taking on any new debt and actually improved their balance sheet in the process. They removed their mortgage debt and increased their assets all at once. They came to an agreement with an investor and sold their urgent care real estate and immediately signed a 15 year lease to remain and continue to operate in the first two locations.
Example 2: Surgery Center Sale
Mark is a surgeon who owns and operates a successful surgery center near Chicago and he was looking to retire and sell his practice to a fellow surgeon. He decided that a sale leaseback transaction was the cheapest and quickest way to unlock his real estate equity and allow the new surgeon to continue as the new owner of the practice without forcing him to acquire the real estate as well. He found an investor who was willing to purchase the real estate for fair market value and immediately after the business sale happened, Mark sold the real estate and the new surgeon signed a longterm lease to lock in a great lease rate that will help control expenses into the future.
Hopefully, these two examples give you a better picture why you might consider a sale leaseback to unlock your medical office real estate equity.
While there are plenty of commercial real estate brokers who would offer to help when you are ready to think through a medical office sale leaseback for your office real estate, there are actually few companies that specialize in the sale leaseback process. These select companies, like SaleLeaseback.co work directly with healthcare professionals to buy real estate directly from you, the owner, with zero fees and a quick process. We help you think through your options and potential pitfalls associated with a sale leaseback transaction for your particular situation. So, if you are considering a sale leaseback to raise funds for your business expansion or debt pay-down, start by letting us give you a free offer for your real estate.