Unlock Your Property's Value Without Relocating Your Practice
Sale-leaseback arrangements allow you to access your real estate equity immediately while maintaining complete operational control of your practice location.
How Medical Property Sale-Leaseback Works
A sale-leaseback converts your real estate equity into liquid capital while preserving your practice location and operations.
You Sell Your Property
You sell your medical office building or practice property to an institutional investor at fair market value, receiving cash proceeds at closing.
Simultaneously Enter a Lease
At the same closing, you enter into a long-term lease (typically 10-20 years) allowing you to continue occupying and operating from the property.
Maintain Full Control
Your practice continues without interruption. Patients, staff, and operations remain unchanged. You simply become a tenant instead of owner.
Deploy Capital Strategically
Use the proceeds for retirement planning, practice expansion, equipment upgrades, debt payoff, or other investments with higher returns.
Key Benefits of Sale-Leaseback
A strategic financial tool that provides liquidity without disrupting your practice
Immediate Liquidity
Access 100% of your property equity immediately at closing. No gradual payout or structured financing - receive full cash proceeds upfront to deploy as you see fit.
Zero Operational Disruption
Your practice continues seamlessly. No relocation, no downtime, no patient disruption. Staff and patients experience no change whatsoever.
Eliminate Property Management
Transfer responsibility for major repairs, capital improvements, and property management to the building owner. Focus on practicing medicine, not managing real estate.
Tax Advantages
Lease payments become fully deductible operating expenses. Depreciation recapture may be deferred with proper structuring. Consult with tax advisors to maximize benefits.
Improved Balance Sheet
Convert illiquid real estate into liquid capital. Reduce debt-to-equity ratios. Strengthen financial statements for banking relationships and practice acquisitions.
Predictable Occupancy Costs
Lock in predictable lease payments with modest annual increases (typically 2-3%). Avoid unexpected major repair costs and capital expenditures.
Is Sale-Leaseback Right for Your Practice?
Schedule a consultation to analyze your property and discuss how sale-leaseback can support your financial goals.
Schedule Free ConsultationIs Sale-Leaseback Right for You?
Sale-leaseback works exceptionally well for physicians in these situations
Planning Retirement
Convert real estate equity into liquid retirement assets while maintaining practice operations during your transition timeline.
Growing Your Practice
Access capital to acquire another practice, add providers, purchase equipment, or open additional locations without taking on debt.
Diversifying Investments
Reallocate capital from concentrated real estate holdings into diversified investment portfolios with potentially higher returns and better liquidity.
Eliminating Mortgage Debt
Pay off existing mortgages and eliminate debt service payments while maintaining operational control of your location.
Partnership Transitions
Simplify partner buy-ins and buy-outs by removing real estate from the equation. Partners invest in the practice, not the building.
Estate Planning
Convert illiquid real estate into liquid assets that are easier to distribute to heirs or allocate according to estate plans.
The Sale-Leaseback Process
A streamlined approach designed to maximize value and ensure lease terms that protect your practice
Property & Practice Analysis
We evaluate your property value, analyze your practice operations, and assess your capital needs to determine if sale-leaseback is optimal.
- Property valuation
- Practice operational review
- Capital needs assessment
- Financial modeling
Lease Term Structuring
We structure lease terms that protect your interests including rent, escalations, renewal options, maintenance responsibilities, and termination rights.
- Fair market rent determination
- Escalation clause negotiation
- Renewal option structuring
- Maintenance allocation
Buyer Marketing & Selection
We market your property to qualified sale-leaseback investors including REITs, institutional funds, and private investors seeking long-term healthcare tenants.
- Institutional investor targeting
- Competitive bidding process
- Financial qualification
- Landlord quality assessment
Negotiation & Documentation
We negotiate both purchase and lease terms simultaneously, ensuring alignment between sale price and lease obligations.
- Purchase price negotiation
- Lease term negotiation
- Legal document preparation
- Attorney coordination
Simultaneous Closing
The sale and lease execute simultaneously. You receive cash proceeds and begin your lease with zero gap in occupancy.
- Closing coordination
- Funds transfer
- Lease commencement
- Seamless transition
Sale-Leaseback Questions Answered
Lease rent is based on fair market rent for comparable medical space in your market, typically calculated as a percentage of the property value (cap rate). We analyze comparable lease rates, property type, location, and tenant quality. The goal is market-rate rent that's sustainable for your practice while providing appropriate returns for the investor. Most sale-leaseback rents range from 6-8% of purchase price annually.
Initial lease terms typically range from 10-20 years with renewal options. Longer initial terms provide more certainty and often result in better purchase prices. We recommend including multiple 5-year renewal options that you control. The ideal term depends on your practice plans, age, succession strategy, and exit timeline. We help structure terms that provide flexibility while maximizing property value.
This is negotiable. "Triple net" leases make tenants responsible for all operating costs including taxes, insurance, and maintenance. "Modified gross" leases split responsibilities, with landlords typically covering structural and major systems while tenants handle interior maintenance. We negotiate maintenance allocation based on your preferences, with many physicians preferring landlords handle major capital expenses while they maintain day-to-day operations.
This depends on your lease terms. We negotiate early termination rights or sublease/assignment provisions that provide flexibility. Options include negotiating termination rights after certain periods (with or without penalty), rights to sublease to other healthcare tenants, or selling your practice with lease assignment. We ensure your lease includes appropriate flexibility given your practice plans and timeline.
Sale-leaseback has significant tax implications that vary by situation. Benefits include converting lease payments to fully deductible expenses, potential depreciation recapture deferral, and capital gains treatment on property sale. However, you'll recognize gain on the sale and lose property depreciation. We recommend consulting with your CPA or tax advisor to model the specific tax impact based on your property basis, holding period, and financial situation.
Healthcare REITs, institutional real estate funds, private equity healthcare real estate funds, and high net-worth investors actively seek sale-leaseback opportunities. These investors value the long-term, stable income from credit-worthy physician tenants. We have established relationships with all investor types and create competitive bidding environments to maximize your proceeds while ensuring you partner with a quality, financially stable landlord.
Analyze Your Sale-Leaseback Opportunity
Schedule a confidential consultation to discuss your property, practice, and financial goals. We'll provide a detailed analysis of how sale-leaseback could benefit your situation.
Completely confidential. No obligation.
Sale-Leaseback Success Stories
"The sale-leaseback CREG Healthcare structured gave us $4.2M in capital that we used to acquire two competing practices and fund a major equipment upgrade. We maintain our prime location with a 15-year lease and fair rent. It was the perfect solution for our growth strategy."
"At 58, I wanted to access my real estate equity without selling my practice. The sale-leaseback allowed me to diversify into a retirement portfolio while continuing to practice for 7 more years. The lease terms were favorable and the process was seamless."
"We eliminated $2.1M in mortgage debt through a sale-leaseback. The monthly lease payment is less than our old mortgage payment, we have predictable costs, and we no longer worry about major building repairs. It strengthened our balance sheet significantly."
Unlock Your Property Equity Today
Discover how sale-leaseback can provide immediate liquidity while maintaining your practice location and operations.
Schedule Free ConsultationExpert guidance. Confidential analysis. No obligation.