Benefits of Retaining Ownership When Selling Your Healthcare Real Estate
LATEST NEWS
RETAINED REAL ESTATE OWNERSHIP
Retained Ownership in the real state enables the existing Ownership/Seller to capitalize on current market conditions and continue to maintain physician alignment between the ownership of the practice group and the property.
With this structure, the Ownership group sells a portion of the existing real estate, which can be structured as a non-taxable and tax-deferred transaction for the retained ownership portion. The ownership interest that is sold consists of each member’s interest in the LLC that directly owns the property.
TAX DEFERRED SCENARIO
The Investor provides the Seller with a valuation for the property.
Investor and Seller determine the retained ownership percentage to be held by the physician practice group members wishing to remain as investors in the property.
Each member of the selling entity will have the option to:
a) remain as owners of the real estate
b) receive cash
c) a combination of the two
The prospective investors’ membership interests are redeemed by the Seller in exchange for an LLC interest in the newly formed company that acquires the property.
The Seller will contribute the property to a new entity formed by the Investor prior to closing and will convey a percentage of the LLC interests to the Seller in the form of a tenancy-in-common ownership interest.
The percentage conveyed to Investor is 100% minus their retained ownership percentage. For example, if the prospective investors are retaining 20% of the LLC interest, the Investor will own 80% of the LLC interest.
The lease can be structured such that the existing owners have an ongoing Right of First Refusal to purchase the property at FMV in the future from the new owner during the term of the lease. Providing a purchase option would not impact the value of the real estate.
BENEFITS OF PHYSICIAN REINVESTMENT
Monthly cash distributions around 7% - 8% per annum
Reduces real estate buy-in for new physicians
Structured as a non-taxable event
Flexibility to own as much of the property as you choose
Allows physicians to perform individual buy/sell transactions internally for succession planning
The property will likely be part of a Portfolio of properties that will garner a Portfolio Premium when sold
Your Trusted Healthcare Real Estate Partner
CREG | U.S. HEALTHCARE INVESTMENT SALES
Andrew R. Larwood
Managing Partner & Principal
m: +1 (770) 845-2091
andrew.larwood@capitalre.com
Allen C. Inman
Managing Partner & Principal
m: +1 (404) 550-7897
allen.inman@capitalre.com
Joshua D. H. Rees
Managing Partner & Principal
m: +1 (858) 312-0657
josh.rees@capitalre.com
-
![]()
Gainesville Medical Office Portfolio | GA
CREG | U.S. Healthcare Investment Sales team is pleased to announce the sale of the Gainesville Medical Office Portfolio which consists of two (2)…
-
![]()
Southpoint Surgery Center | FL
CREG | U.S. Healthcare Investment Sales team is pleased to announce the sale of Southpoint Surgery Center, a premier ASC-anchored medical office…
-
![]()
Hillcroft Medical Clinic | TX
CREG | U.S. Healthcare Investment Sales team is pleased to announce the sale of the Hillcroft Medical Clinic located in Sugar Land, TX…
-
![]()
Albemarle Eye Center / Precision Eye Care | NC
CREG | U.S. Healthcare Investment Sales team is pleased to announce the sale of a 4-property ophthalmology portfolio located on the eastern…
-
![]()
West Michigan Medical Office Building | MI
CREG | U.S. Healthcare Investment Sales team is pleased to announce the sale of the West Michigan Medical Office building located in Northern…
-
![]()
Maitland Medical Center | FL
CREG | U.S. Healthcare Investment Sales team is pleased to announce the sale of the Maitland Medical Center located in Maitland, FL, part…
-
![Hope Orthopedic Portfolio | OR]()
Hope Orthopedic Portfolio | OR
CREG | U.S. Healthcare Investment Sales team is pleased to announce the sale of a four-building medical office portfolio located in Salem, Oregon…
-
![]()
Michigan DaVita Portfolio | MI
CREG | U.S. Healthcare Investment Sales team is pleased to announce the sale of the Michigan DaVita Portfolio consisting of five (5) DaVita dialysis clinics…
-
![]()
The Surgery Center at Cranberry | PA
CREG | U.S. Healthcare Investment Sales team is pleased to announce the sale of The Surgery Center at Cranberry located in Cranberry Township…
-
![]()
Premier Surgery Center | GA
CREG | U.S. Healthcare Investment Sales team is pleased to announce the sale of Southern Orthopaedics & Sports Medicine Clinic and the Premier Surgery…
-
![]()
Knoxville Medical Office Portfolio | TN
CREG | U.S. Healthcare Investment Sales team is pleased to announce the sale of a three-building medical office portfolio located in Knoxville, TN…
-
![]()
Riverpark Medical Center | LA
CREG | U.S. Healthcare Investment Sales team is pleased to announce the sale of Riverpark Medical Center, a 44,500 SF, multi-tenant medical office…
-
![]()
The Surgery Center of Fairbanks | AK
CREG | U.S. Healthcare Investment Sales team is pleased to announce the sale of the Surgery Center of Fairbanks located in Fairbanks, AL for approximately…
-
![]()
Eye Associates ASC & MB Portfolio | GA
CREG | U.S. Healthcare Investment Sales team is pleased to announce the sale of a two-building medical office & ASC portfolio totaling 25,736 SF…
-
![]()
Michigan Senior Housing Portfolio | MI
CREG | U.S. Healthcare Investment Sales team is pleased to announce the sale of a two-property senior housing portfolio consisting of 139 units…
-
![]()
Kentucky Eye Institute Portfolio | KY
CREG | U.S. Healthcare Investment Sales team is pleased to announce the sale of the Kentucky Eye Institute portfolio comprising four (4) medical buildings…
