Case Study: Finance

Harbin Clinic, LLC

Challenge

Develop an ownership and financing strategy for a $25 million real estate portfolio used by the Harbin Clinic to deliver healthcare to the North Georgia region.  The Harbin Clinic needed an ownership entity that would minimize the financial implications of a significant investment in real estate.  Further, it was necessary to allow ownership entry and exit into the real estate partnership as physicians joined the Harbin Clinic.

Our Approach

RTG developed a private ownership entity that was exclusively owned by eligible physician members of the Harbin Clinic.  This entity was capitalized through a private placement offering and further capitalized with additional long-term debt.  RTG assisted in the development of the private placement memorandum, developed the financial budgets and proformas for the company and recommended a long term financing solution.

Success

Upon closing of the transaction, the entity has successfully owned and managed the real estate assets utilized by the Harbin Clinic to deliver healthcare to the community. RTG continues to provide executive support and advisory support services to the new entity and is also developing a new $17.0 million medical office building for this client.