Wilmington NC Real Estate News
Medical Office Sale/Leaseback-1302 Medical Center DriveJuly 18, 2019
The Southeastern Nephrology building on Medical Center Dr was sold in July for $4.0M. The details of the leaseback were not disclosed, but the practice plans to remain in place long-term after recently merging with Eastern Nephrology Associates.
Janet Rose and Mark Johnson with RoseMark Commercial Advisors of Coldwell Banker Commercial Sun Coast Partners (CBCSCP) served as dual agents in the transaction. The purchaser was MMAC Acquisition Corporation, a Florida corporation. Janet and Mark recently sold an Urgent Care/Family Practice property at 608 Dawson, and the EmergeOrtho portfolio several months ago. Within the region, they’re working on a 56,000 SF medical sale/leaseback that should close next year, bringing their total medical sales/leasing to over 220,000 SF.
The sellers, a physician group, were able to reinvest into the asset, allowing them to defer some capital gains tax and share in the future disposition proceeds. Additionally, they will be permitted to co-invest with the purchaser in a larger portfolio on an ongoing basis. This combination of investment options was a compelling reason for the sale.
Janet and Mark have completed several other medical sale/leaseback transactions, ranging from just over $1M to well in excess of $30M. As Janet said, “once a Letter of Intent has been signed by both parties, we have a 100% close rate. In general, these transactions can close very quickly; usually within 60 days of a signed purchase agreement.”
With the recent indication by the Federal Reserve Bank that a decrease in interest rates may be looming, prices for medical assets (among other investment vehicles) will likely see a boost as a result. The purchaser has made it clear that they’d like to acquire more assets in the market and are funded with approximately $1B for the balance of 2019.