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Thought Leaders: What are the keys to a successful healthcare real estate asset sale?

Carter Validus Advisors II LLC (“Carter Validus”), the external advisor to Carter Validus Mission Critical REIT II Inc., releases new white paper examining the important issues and how to manage them

The $43.5 million acquisition of this 106,807 square foot medical office building is one of the transactions spotlighted in the white paper. (Photo courtesy of Carter Validus)

TAMPA, Fla., Dec. 6, 2017 – The executive team of a national healthcare system wanted to sell a medical office building portfolio in central Florida, but the executives were wary of the process because of challenges with some of their previous asset sales. What should they do, they wondered, to avoid the mistakes of the past and ensure they have a successful closing on the Florida properties?

A new, comprehensive white paper dealing with this topic is now available from Carter Validus Advisors II LLC (“Carter Validus”), the external advisor to Carter Validus Mission Critical REIT II Inc., entitled “How to Bulletproof Your Asset Sale – Keys to Success.” The white paper includes important issues to consider for any sale of healthcare assets, along with proven processes for managing those issues that Carter Validus experts have learned from four decades of working with sellers and buyers. Following is a summary of the white paper, which was written by Alex Stacy, Chief Acquisition Officer, Healthcare, Carter Validus.

Focus on important initial strategies
For major transactions, it is most important to carefully plan and implement the initial strategies. First, the seller, the prospective buyer and their intermediaries should understand all parties’ interests and expectations and have a clear vision for how the transaction will play out. Second, each party should determine the value it brings to the transaction. Finally, the parties should determine what resources and expertise they’re missing and be open to bringing in others with the needed resources to close the gaps, add value and build the relationship.

Honest, up-front communication is key
It is essential for all parties to identify potentially serious issues early and to have honest, open conversations about those issues and how they will be resolved.

Thorough property and tenant due diligence are a must
It is important for the buyer to conduct extensive due diligence on the properties they are considering to acquire so there are no misunderstandings or surprises that delay the process. In fact, many buyers and sellers find it helpful to prepare a comprehensive checklist of all important issues they need to discuss and/or examine, and check off each item when they have completed the review.

Bring in the experts
The healthcare sector has changed rapidly during the past few years and become increasingly complex, and so have healthcare providers’ real estate and acquisition needs. That’s why it is more important than ever to consider working with a professional real estate firm that can provide specialized knowledge and expertise in the acquisition process. To select an appropriate firm, there are certain key questions that should be asked (which are detailed in the white paper).

Summary: Don’t lose sight of the ultimate goal a successful close
Nobody wants to experience delays in their closing. However, inevitably, most extensions are the result of the seller and buyer not communicating openly and honestly and having candid conversations up front. Sometimes the seller and buyer come to an impasse and get trapped in a win-lose scenario because they lost sight of the ultimate goal: to close. They should try to understand and solve complex issues before they become true “deal breakers” and be creative with solutions that will help them reach the best alternative or common vision. This will ensure that each closing is efficient, on time and successful.

Want to know more? To obtain a copy of “How to Bulletproof Your Asset Sale” by Alex Stacy, which includes a detailed discussion of these issues along with brief transaction case studies, please contact Stacy Sheedy, Marketing Manager, Carter Validus at ssheedy@cvreit.com or 813-316-4292.

About Carter Validus Mission Critical REIT II, Inc.:
Carter Validus Mission Critical REIT II, Inc. is a public, non-traded company headquartered in Tampa, Florida that has elected to be taxed, and believes it qualifies, as a real estate investment trust. Carter Validus Mission Critical REIT II, Inc. intends to acquire mission critical real estate assets located throughout the United States and abroad. Mission critical real estate assets are purpose-built facilities designed to support the most essential operations of tenants. Carter Validus Mission Critical REIT II, Inc. intends to continue to focus its acquisitions on mission critical assets in the data center and healthcare property sectors. See www.cvmissioncriticalreit2.com for more information.

Forward-Looking Statements
This press release contains forward-looking statements within the meaning of federal securities laws and regulations. These forward-looking statements are identified by their use of terms and phrases such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “predict,” “project,” “should,” “will” and other similar terms and phrases, including references to assumptions and forecasts of future results. Forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors that may cause the actual results to differ materially from those anticipated at the time the forward-looking statements are made. Although CV Mission Critical REIT II believes the expectations reflected in such forward looking statements are based upon reasonable assumptions, it can give no assurance that the expectations will be attained or that any deviation will not be material. CV Mission Critical REIT II undertakes no obligation to update any forward-looking statement contained herein to conform the statement to actual results or changes in CV Mission Critical REIT II’s expectations.

Media Contact:
Stacy Sheedy
Marketing Manager, Carter Validus

For more news from Carter Validus, please visit http://www.cvmissioncriticalreit2.com/newsroom.html

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4890 W. Kennedy Boulevard, Suite 650 | Tampa, FL 33609
Office: 813.316.4292 | Fax: 813.287.0397

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