CHALLENGE

Columbus Regional Health System (CRHS) is a market-leading healthcare provider with over 60% inpatient admission market share in its PSA. Anchor hospital Columbus Regional Medical Center offers 413 beds, and nearby Doctors Hospital offers 219 beds. Leadership changes, resulting vacancies in key positions, and a shortage of capital needed to fund new initiatives motivated CRHS to contemplate monetization. As a leading employer in the market, it was critical that the process be handled discretely and with minimal facilities staff impacts.

ACTION

Global Healthcare Services was selected to lead the initiative, which began with an extensive review of CRHS assets and obligations. At the end of the process, 13 buildings in two states were offered for sale, totaling over 325,000 SF. GHS underwrote the Portfolio and confidentially marketed the offering to prequalified investment groups that are active in the healthcare real estate investment community. NKF successfully ran a competitive marketing process and secured several qualified offers from national healthcare REITs and private investment groups, and guided CRHS through offer review and buyer interviews.

RESULT

As a result of the competitive marketing process, NKF successfully sold the portfolio to a single healthcare REIT in two stages for $34.5M, exceeding CRHS leadership expectations, and CRHS has since re-hired GHS to monetize additional assets.