Medical Office Building
  • Location: 400 Keisler Drive, Cary, NC
  • Client: Keisler Partners, LLC (Carolina Rehabilitation affiliate)
  • Size: 17,000 sf
  • Type of Project: Seller Representation
  • Service Type: Medical Office

Situation
The owner, a physician and operator of a major rehabilitation business, elected to downsize their office space and relocate to a more convenient location.  They had worked with another brokerage firm for over 18 months without success.  The property had been under contract for retail re-development and also considered seriously for a hospitality project.  Ultimately, the opposition for these uses was too great, forcing the owner back to the drawing board.  The owner was also stressed and frustrated because another tenant in the building was strongly considering a downsize and relocation. Avison Young approached the owner at this time to offer a solution.

Solution
Recognizing the strength of the location as a medical office building, Avison Young set about to identify a healthcare developer who had an immediate use for the property that would garner the strongest offer and most favorable terms for the owner.  Lyons and his team, launched a comprehensive marketing plan that resulted in several LOI’s from well-established healthcare developers and a high net worth investor.  

Results
Just before the listing was finalized the owner received an offer from one of their tenants at $3.7M.  Shortly after the listing was “inked” another offer was received from an MOB developer at $4.0M which, after the marketing began, increased to $4.3M.  This first developer was held to a short due diligence period and bowed out quickly when their re-development plan did not materialize.
  • Welcore Development (Raleigh) was identified within 30 days;
  • Welcore was in need of a site close to WakeMed Cary for a national dialysis operator;
  • Welcore faced significant approval challenges with the local municipality, even without a change of use requirement;
  • Welcore’s business model enabled them to pay the highest price (over 10% above the original pricing guidance of $3.8-4.0M); and
  • Brought a much needed service to that submarket.

 

Testimonial
“Gary Lyons with Avison Young brought the focused attention and tenacity needed to complete a highly successful transaction.  We had a couple of failed attempts with other firms prior to Avison Young’s involvement, so we had some skepticism initially, but we learned quickly that Gary’s experience and dedication was what we had been lacking.  Thank you for delivering outstanding results.”
Pat O’Brien, MD (Owner) 


“We could not be more pleased with the number of interested parties you brought to the table and the price achieved for our property.  We believe that your diligence, and persistence, led to the identification of the ideal buyer for our property – an investor who had an outstanding re-develop-ment concept for it (a dialysis center).” 
Jim Gellatly, Executive Director (Carolina Rehab & Surgical Assoc.)