The Challenge:

• Medical Associates Plus (MAP) reached out requesting the analysis of an upcoming acquisition.

• In the process of this discussion, MAP inquired regarding lease w/ purchase option that the group was negotiating, and asked for an opinion on the terms. Our team offered to perform a Broker's Price Opinion (BPO) on the building and a review of the lease terms.

• The tenant was purchasing this building along with the practice, and as there were multiple partners in the practice, which made for delicate negotiations.

• The original terms asked for MAP to be responsible for taxes and insurance, which is not common and placed liability and uncertainty on our client. Also, after the free rent period elapsed, the rate escalated quickly to a rate that we perceived to be high.

• The purchase option seemed unusual, with the price escalating every year, and the starting price seeming very high.

Our Approach:

• Performed a Broker’s price opinion, including a survey of available properties including private offices and hospital complex properties. Our recommendation was to counter the offer with a lease rate based on our numbers, and a purchase option based on the market comparables.

• Communicated with the landlord’s broker, and explained our rationale and numbers.

Results:

• Saved the tenant over $200,000 between the lease rate and purchase option.

• Negotiated better terms and less liability.

• Our fee was paid for by the landlord, so MAP didn’t have to pay anything.

Client Testimonials:

“Jonathan Aceves and the team at Meybohm has exceeded our expectations. On our last acquisition they helped negotiate better terms than we thought possible, and we routinely rely on them for valuation advice on medical office buildings. Great work! Would highly recommend them!”

Wesley Wood, CFO | Medical Associates Plus Medical Center