West El Paso Surgical Center - El Paso, TX

Healthcare Real Estate - Outpatient Services - Fremont Health Center for Wound Healing - Hyperbaric Chamber

— Transaction Highlights—

Transaction Value: $9,500,000

Key Points: Medical real estate portfolio (3 properties), increased weighted average lease term (WALT) to 9.3 years from advertised 7.6 years, triple-net (NNN) sale-leaseback, health system joint-venture, long-term lease.

Property Components: Orthopedic-focused ambulatory surgery center, clinic and physical therapy.

Buyer: Medical Real Estate Investment Trust (REIT) Seller: Physician Partnership

— TENANT Summary —

This three building, orthopedic focused medical portfolio was developed in 2015 to provide a holistic suite of orthopedic services to greater El Paso. The portfolio is anchored by Sun City Orthopaedics and West El Paso Surgical Center (an HCA Healthcare-Physician joint-venture). Performance Physical Therapy provides patients with rehabilitation and injury prevention services.

— TRANSACTION Summary —

While representing the eventual buyer, HG Real Estate Partners collaborated with the physician partnership’s council on structuring a sale-leaseback for all three properties. The outcome was a leading national medical Real Estate Investment Trust (REIT) purchasing the portfolio in exchange for a long-term, triple-net lease. While under contract, HG negotiated to increase the weighted average lease term (WALT) from the advertised 7.6 years to 9.3 years.