CASE STUDY

How Boldt Saved a Healthcare Client
$3 Million in Rent

From Cost Burden to Capital Advantage

Boldt partnered with a leading non-profit healthcare network to acquire and finance five outpatient facilities. This strategy provided our client with more competitive rental rates, flexible leasing structures, immediate liquidity and long-term control and ownership potential.

The structure for each project was uniquely selected by our client to fit within the economic and financial goals of each property. The project included:

  • Acquiring one facility owned by a third party
  • Acquiring three facilities from the client and leasing them back to the client.
  • Funding the deconstruction of an existing facility and the development of a new outpatient clinic

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DECREASED EXISTING BASE RENT

SAVED MILLIONS IN BASE RENT PAYMENTS

5 ACQUISITIONS

GAINED LONG-TERM ECONOMIC CONTROL OF THE ASSETS

RESTRUCTURED LEASE

REGAINED MORE THAN $10 MILLION IN CAPITAL

Sutter Health Van Ness Campus Hospital

Flexible Leasing Structures = Cost Savings

We engaged in several strategic acquisition opportunities to enhance our client’s infrastructure while ensuring long-term control and economic benefits. The acquisition of a 70,000 sq. Ft. Facility, housing critical functions including corporate administration, lab and health and wellness services, was a significant move. By partnering with Boldt to acquire the building from a third-party landlord, our client saved an estimated $3 million in base rent payments over the life of a restructured 20-year lease with Boldt. They also regained more than $10 million in capital and secured economic and financial control of the property by structuring the deal so that the building ownership transferred to the client at the end of the lease period.

Similarly, the client opened a 16,000 sq. ft. health center with a local developer. A few years later, the original developer put the property on the market. Instead of allowing a third-party owner to control the interests in the asset, the client partnered with Boldt to ensure it regained long-term control of the outpatient location. Despite an aggressive acquisition price, Boldt was able to acquire the property and restructure the client’s lease to save them $380,000 in base rent payments. In addition to the operational benefit to the client, the lease with Boldt transferred ownership of the building to the client at the end of the term and gave them control over the use and benefit of the property.

Boldt was also able to help our client unlock capital for funding upgrades on existing medical properties. The two projects (20,000 sq. ft. each) were sold to Boldt as part of a sale-leaseback. The structure of the lease allowed for the ownership of the property to transfer back to the client at the end, allowing them to regain control of the investments they were making in the facilities.

Most recently, our client needed funding for a 9,000 sq. ft. new primary care clinic in. Boldt secured financing for the client to construct the project and entered into a long-term lease with Boldt. Again, the lease structure allows for the ownership of the property to transfer back to the client at the end.

 

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Boldt Healthcare Real Estate is a leading healthcare real estate developer with over 135+ years of experience. Our long history has taught us how to combat uncertain markets and the changing healthcare industry, making us a reliable partner for your strategic goals.  

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When you are looking to expand your footprint, we have the experience and expertise to help you through the process. Our team will guide you through choosing the right location and building design and finding financing options that work for your budget.

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