CHALLENGE

The Belpre Medical Campus Portfolio consisted of three medical office buildings and a free-standing emergency department situated in Belpre, OH. All of the buildings were leased to Marietta Memorial Health System. Two of the medical office buildings had rent that was significantly above market due to building costs being captured in the base rent. The properties were also located in a rural area of the Mid-Ohio Valley, which meant there was significant exposure with one tenant in a tertiary market.

ACTION

Global Healthcare Services was engaged to run a competitive process for the owners. GHS successfully ran a competitive bidding process, even adding on a fourth round because of a bidding war between two groups. GHS worked with the owners on accepting an offer that was $3M higher than the top of the guidance range.

RESULT

As a result of GHS’ competitive marketing process, ownership was able to sell a remote portfolio to a public REIT, while avoiding tax implications by converting a portion of the proceeds into partnership units of the REIT. GHS will continue to advise on a comprehensive cancer center that is currently being developed for the hospital.