Healthcare Real Estate Advisory Services
Our advisory services include:
Fairness Opinions for Healthcare Real Estate Transaction
Determining if a potential healthcare transaction or business opportunity fits the required standard of "fair market value" and "commercially reasonable" is a complex undertaking. Hospital administration, and ultimately the organization's board of directors, should rely upon a fairness opinion as an independent and objective statement from a qualified expert that the transaction or business opportunity is "fair" to the organization. Many times the complexity of the transaction or business opportunity is further increased by the relationship of one or more parties to the organization.
Realty Trust Group recognizes the importance and significance of fairness opinions involving healthcare organizations. Our professionals apply not only a rigorous examination of the financial aspects of a contemplated transaction through research, analysis, and critical thinking, but also exercise judgment derived from years of industry experience for the nonfinancial issues in determining the overall fairness of the transaction. RTG professionals hold advanced college degrees and the highest designations/certifications available in the real estate industry including: Certified Commercial Investment Member (CCIM); Certified Property Manager (CPM); and Counselor of Real Estate (CRE). Our opinions are presented in a selfcontained report format with clearly stated qualifications and limiting factors.
The following are examples of engagements involving fairness opinions provided by the professionals of Realty Trust Group
- Competitive market analysis for medical office rents including operating expenses that should be passed through to the physician/tenant.
- Cost estimating support for the preparation and filing of Certificates of Need involving site acquisition, site preparation, project cost allocation methodology, building construction costs, and overall total development costs.
- Expertise regarding construction costs for medical office buildings and ambulatory surgery centers and establishment of fair market value rents based on net rent or gross rent basis.
- Land use regulation issues concerning permissible land uses, density and related matters, including subdivision and potential development of property.
- Transaction analysis regarding the potential direct sale, lease or partial sale (joint ventures) of hospital assets to physicians or other interested (disqualified) individuals.
- Site location justification, including healthcare CON proceedings.
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