Portfolio

Wake Internal Medicine Consultants

Project Details


Financing Type:
Lease-to-Buy New Construction
Amount:
$19,500,000
State:
North Carolina
Following a previously unsuccessful venture into real estate ownership, this group decided to reconsider and purchase a 48,000 sq ft built-to-suit building. After signing a lease-to-buy agreement with its contractor, the group initially worked with CMAC on a consulting basis to test different ownership structures to determine which model would meet its long-term objectives and thus be reflected in a comprehensive operating agreement. The partners wanted to ensure history would not repeat itself after their prior ownership challenges, so CMAC presented several analyses of owning vs. leasing, illustrating the benefits and risks of each scenario.

Ultimately, the practice decided the advantages of owning outweighed those of leasing, so CMAC moved forward to facilitate the purchase financing once construction was complete. After vetting the market, CMAC secured fantastic proposals from a selection of lenders, including improved terms from the incumbent bank. The group also received a remarkably high-valued appraisal after employing CMAC’s PVI Appraisal Process. The physician partners can rest easy knowing their real estate investment is structured in a way that is sustainable and aligned with the goals of the practice.