A healthcare property sale leaseback can be a mutually beneficial arrangement for both the practice and the investor. A practice unlocks equity and an investor receives steady income. The healthcare company remains as a tenant in the space with a long term lease focusing on practicing medicine and caring for patients.
Clinician Benefits
A sale leaseback can be an effective way for medical practices to unlock the value of their real estate assets and improve their financial position, while also providing stability and growth opportunities for the future.
Unlock Equity
Allows the practice to unlock equity from their property by selling it to an investor and leasing it back.
Steady Income
An investor can enjoy steady rental income from a long-term lease with a healthcare practice. This provides a predictable and stable source of income, especially considering the healthcare industry is generally considered to be recession-resistant.
Capital for Growth
Provides the practice with a substantial infusion of capital which can be used for growth opportunities, such as hiring additional staff, upgrading technology, or expanding services.
Diversification
Investing in healthcare real estate can provide diversification to an investor's portfolio. This asset class is generally considered to be relatively uncorrelated to the stock market, which can help to reduce portfolio volatility.
Improved Financial Position and Exit Strategy
Monetizing their real estate assets can help the practice to improve their financial position by reducing debt and increasing cash reserves to use now or as a strategic exit strategy.
Inflation Hedge
Healthcare properties typically triple net (NNN) and protect the investor against rising operating expenses.
Single-Tenant NNN Medical Office Condominium
2940 N Litchfield Rd, Bldg 13 Goodyear, AZ 85395
A well established Neurology practice with several sites through the Phoenix metro area decided to proceed with a sale-leaseback to unlock the equity in their real estate now. The property operates a sleep center and the clinic for the practice. The buyer is a well established and experienced real estate investment company that specializes in sale leaseback transactions and has purchased several medical offices. It is a win-win for both sides of the transaction.
