Expedition Pediatric Dentistry & Orthodontics
The following case study highlights one of many ways we help our clients succeed at the highest level in their healthcare real estate transactions. As every property requirement, deal structure, and negotiation is unique to each practice owner, we strive to find solutions that provide maximum benefits to our clients.
Scenario
Our client, Jesse Gardner DMD, wanted to grow his pediatric dental practice by opening a new location in a neighboring city, Nixa, Mo. The client already owned a lot in Nixa which presented a prime location for a ground up project. However, he wanted to consider all options before making a final decision, including the possibilities of leasing or purchasing an existing building.
Delivery
We thoroughly researched the area for all purchase and lease options within the parameters of the project’s requirements. After examining all feasible options to lease, there were only one or two possibilities. Neither of them were exciting, as they simply didn’t offer the visibility and branding that was desired. In the purchase category there was only one possible building, formerly occupied by a bank. However, it was oversized by about 1,000 sf and at first glance over budget. After comparing the ground-up, lease and purchase options, including the deal economics of each, we decided to put an offer in on the existing bank building at a substantially discounted price. To our surprise, the bank/owner was eager to get the property off of their books and therefore willing to negotiate and offer the buyer substantial savings and a clean and quick purchase.
Results
In the end, Dr. Gardner was able to secure a beautiful building in an ideal location. With the tax, equity, and autonomy benefits associated with ownership, the new location has proven to be a winning choice. In comparison to the ground-up option or leasing equivalent square footage in the market, the cash-in-hand saved annually combined with equity offered nearly $1-million in savings over the next 10-years for the practice.
“It was a pleasure working with Travis Smith and CARR to make my new practice location a reality. I had struggled to find a good solution and had wasted time and money pursuing options that ultimately were not feasible for me. Travis provided me with detailed analyses and spreadsheets which broke down numbers and simplified the decision-making process, and he helped guide me through the entire transaction. I highly recommend CARR!”