HRE CAPITAL
PIPELINE HEALTH
$215,000,000
Sale-Leaseback of Four Acute-Care Hospitals and Two Medical Office Buildings Located in Los Angeles, California
THE UNDERSIGNED SERVED AS EXCLUSIVE FINANCIAL ADVISOR TO PIPELINE HEALTH
HRE CAPITAL
Transaction Overview
Healthcare Real Estate Capital (“HRE Capital”) served as financial advisor to Pipeline Health (“Pipeline”) related to the sale-leaseback of six healthcare real estate assets totaling 367,040 square feet (the “Portfolio”). Located across four acute-care community hospital campuses branded as Avanti Hospitals (“Avanti”) throughout Greater Los Angeles, the Pipeline operated regional health system includes 497 licensed beds and two medical office buildings totaling 47,000 square feet. This highly accretive disposition, which generated significant liquidity to further growth plans throughout the Avanti platform and beyond, was marketed and closed in a highly restrictive COVID environment approximately 18 months after the Portfolio was acquired by Pipeline.
HRE Capital’s Role
On behalf of Pipeline, HRE Capital undertook a competitive effort to identify an institutional net lease / healthcare real estate investor (“Investor(s)”) to (i) acquire the Portfolio via a sale leaseback to maximize proceeds at a market rental factor; (ii) fund certain near-term capital improvements and acquire adjacent land parcels to facilitate future growth; and (iii) craft a transaction that could be replicated with other acute-care investments in the existing Pipeline portfolio and for future acquisitions. Due to HRE Capital’s knowledge of the healthcare real estate capital markets, the Portfolio’s operating performance and Pipeline’s operational expertise, the selected Investor completed the transaction in a difficult COVID environment while simultaneously meeting Pipeline’s and the Investors’ respective goals.
ABOUT THE COMPANIES INVOLVED
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 & 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’s senior management team has been involved with over $12 billion in healthcare real estate transactions.
Pipeline Health
Pipeline is the parent company for a diverse group of healthcare service companies. Through the culmination of 25 years of clinical and operational experience, Pipeline has crafted the tools and strategies to address a wide range of healthcare challenges through its various affiliated companies which are focused on emergency care, urgent care, telemedicine and hospitalist services, among others. Since its initial acquisition in 2018, Pipeline has grown to include seven hospitals with nearly 1,200 beds across three states.
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