CREG Healthcare successfully represented the seller in the $7.2 million sale of Crossroads MOB, a 34,680 square foot medical office building located at 491 Sage Road in White House, Tennessee. Built in 2007, the property was acquired by an institutional buyer on a triple-net lease structure, with CREG negotiating both a new long-term lease with Ascension Health and a lease extension with a second tenant — completing both by closing to deliver a fully stabilized, investment-grade asset to the market.
Transaction Highlights
This transaction showcases CREG Healthcare’s ability to engineer value ahead of the sale, not just broker it. Recognizing that lease quality would be the primary driver of institutional pricing, our team negotiated directly with Ascension Health — one of the nation’s largest nonprofit health systems, carrying Aa2 (Moody’s) and AA (S&P) credit ratings — to execute a new lease ahead of closing. Simultaneously, CREG secured a lease extension from the building’s second tenant, ensuring the property delivered to the buyer as a fully occupied, multi-tenant NNN asset with health system credit anchoring the rent roll.
Ascension Health: Investment-Grade Anchor Tenant
Ascension Health is one of the largest nonprofit Catholic health systems in the United States, operating 121 hospitals and more than 59 ambulatory surgery centers across 16 states. With Aa2 and AA credit ratings from Moody’s and S&P respectively, Ascension’s tenancy provides institutional buyers the kind of credit quality that supports premium cap rate compression and attracts the broadest possible buyer pool — which is precisely what CREG leveraged to drive competitive bidding on this asset.
Why This Transaction Succeeded
- Pre-Sale Lease Engineering: CREG negotiated and executed a new Ascension Health lease and a second-tenant lease extension prior to closing, transforming the asset’s credit profile before it went to market.
- Health System Credit: Ascension’s Aa2/AA ratings anchored the rent roll and commanded institutional-quality pricing from the buyer pool.
- Earn-Out Completion: A negotiated earn-out was completed and signed by the time of closing, providing the seller with full economic participation in the lease-up value created.
- NNN Structure: Triple-net lease terms transferred operating expense risk to tenants, maximizing net income clarity for the buyer.
- Institutional Buyer: CREG’s buyer network delivered a qualified institutional purchaser capable of closing on the stabilized asset at premium pricing.
- 2007 Construction: Modern vintage medical office with established infrastructure, purpose-suited for multi-specialty outpatient use.
The transaction was led by CREG | Healthcare, with Allen Inman, Andrew Larwood, and Josh Rees overseeing the deal.
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