The Benefits of a Sale-Leaseback Real Estate Transaction

Partner News | Published: Wednesday, May 20, 2020

Imagine you are the owner of the medical office building or ambulatory surgery center (MOB) that contains your practice. Your top priority as a physician is to provide quality care to your patients. Yet, as the owner of the real estate, you find yourself facing increasing cost pressures. You want to focus more on the care aspects of medicine and less on the real estate ownership and management issues.

More and more provider-owners are facing those same pressures and capital constraints. A sale-leaseback of your MOB provides an effective solution to unlocking the trapped value of your real estate, while freeing up much-coveted cash. With MOB values near historical highs, the timing may be right to assess a potential sale-leaseback transaction.

What is a sale-leaseback and why is it important?

A sale-leaseback to a long-term real estate partner allows you to hand-pick your landlord, recover capital that was invested in the purchase or development of the property and ongoing improvements, and continue to occupy the property via a long-term lease.

Is a sale-leaseback the right option for you?

As you consider a sale-leaseback, it’s important to understand how a sale-leaseback transaction provides economic and operational benefits to your practice, especially when compared to conventional financing.

Many factors influence your decision to execute a sale-leaseback of your building. These include deal terms, asset location, strength of the practice, and tenure of the physicians. Currently, medical office buildings are trading at prices advantageous to sellers.

As you review whether the timing may be right to look at a potential sale-leaseback for your real estate, connect with the Physicians Realty Trust team, a trusted industry partner, to learn more.