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Foundry represented a group of physicians wishing to sell their medical office building in a booming regional submarket of Nashville.
Gateway Medical Plaza
Foundry represented a group of physicians who owned their 44,201 SF medical office building located in immediate proximity to a major hospital in a booming regional submarket of Nashville. They desired to sell their property to take advantage of favorable MOB pricing in the marketplace.
The property had six tenants, five of which were part of the property’s ownership structure.
The asset had some significant deferred maintenance. There was an ongoing water intrusion issue that affected some of the suites, and key components of the HVAC system needed to be upgraded and replaced.
There were also title issues with the City of Murfreesboro.
To achieve the seller’s pricing objectives, Foundry’s IAG team did a detailed financial analysis that led to extending and blending the existing tenant’s leases to help eliminate any short to intermediate roll over risk and provide a weighted average lease term (WALT) that exceeded 7 years which helped create additional demand for the building.
Foundry created a top-quality marketing campaign and efficiently launch the property to market, exposing the property to a targeted list of medical office REITs and private equity investors. Within two weeks, Foundry had over fifty different buyer prospects reviewing the offering memorandum.
Foundry coordinated with third party experts to understand scope/cost to remedy water intrusion issue, and began to resolve the title issues with the city.
Despite being in the peak of the Covid-19 pandemic, Foundry created a competitive bidding environment with five offers resulting in pricing that greatly exceeded client’s expectations.
Foundry helped the client navigate through physical inspections and plans for remediation of water intrusion and HVAC issues.
The result was a successful closing at a price higher than the seller’s original appraised value of the property.