Transaction Overview
Healthcare Real Estate Capital (“HRE Capital”) was selected as the exclusive financial advisor to 200 E. 18th LLC (“Seller”) related to the disposition of the Buckeye Health Center, a 25,070 square foot outpatient medical office building (“Asset”) located in Cleveland, Ohio. Purpose built in 2005 to an institutional level of quality, the 100 percent occupied Asset is leased on a triple-net basis to MetroHealth System (“MetroHealth”). The Asset is part of a network of branded outpatient facilities that are core to MetroHealth’s mission of providing high quality outpatient healthcare services to the Greater Cleveland community.
HRE Capital’s Role
HRE Capital undertook a competitive effort to procure an investor positioned to purchase the Asset under a restrictive timeframe. Leveraging its unmatched track-record and significant industry relationships, HRE Capital quickly approached a select group of well-capitalized and reputable healthcare real estate investors throughout the United States. Despite certain hurdles with the transaction (short-term master lease and smaller deal size), HRE Capital achieved the Seller’s various goals related to timing and pricing for the transaction.
Healthcare Real Estate Capital
HRE Capital is a national advisory firm focused solely on the healthcare real estate sector. Our clients include many of the nation’s top healthcare providers and developers / investors of healthcare real estate. HRE Capital’s focused model provides clients with an unmatched level of relevant experience and independent transaction analysis, structuring and execution capabilities. Providing both consultative and transaction oriented services, including asset / portfolio joint venture structuring, recapitalizations, dispositions and other related real estate advisory services, HRE Capital has completed engagements approaching $3.0 billion over the last several years.
MetroHealth System
Founded in 1837, MetroHealth is a nationally ranked, academic medical center and one of the largest, most comprehensive healthcare providers in Northeast Ohio. The system has 17 locations throughout the Cleveland region, including the MetroHealth Medical Center (545 beds) and 16 outpatient facilities. The system provides a comprehensive range of services that include a Level I trauma center, Level II pediatric trauma center, Level III neonatal intensive care unit, and a regional burn unit. MetroHealth remains a strong regional non-profit healthcare provider, which is evidenced by its investment grade credit rating (Moody’s: A3; Fitch: A-; S&P: A-).
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