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March 25, 2021

As our firm continues our 2021 series of Maximizing Profitability Through Real Estate, our March edition provides a Case Study of a recent transaction where CARR was able to help a client capitalize on market conditions, as well as the Economic Aid Act that was recently released. These articles are published by one of Truitt, Tingle, Paramore & Argent's most trusted vendor partners in the Dental Industry, CARR.

 

In part three of this series, we asked Alabama | CARR Agent, Kyle Church to write a Case Study to help our clients better understand a scenario that may apply to you, or a colleague, as it pertains to buying the building you are currently renting. To protect client privacy, we will say the Dr’s name is Dr. Kim.

 

"When we initially met for lunch, Dr. Kim had roughly two years remaining on her lease. She had goals of being in a facility that would allow her to grow your footprint, and her practice while owning. Practicing in a tight market, this was certainly a tall task. Dr. Kim concluded the best-case scenario would be staying where she currently was, and owning the building she is currently in. Two variables that would make this difficult: 1. Dr. Kim’s landlord has zero interest in selling the building; 2. She occupied less than 50% of the building. CARR approached the landlord and walked them through why it made sense to sell this building to Dr. Kim now vs. waiting two years to make that determination. Mainly because Dr. Kim’s rent made up over half of the tenant income on the property, and if Dr. Kim were to relocate in 24 months; that would devalue their property immensely considering the term that would be remaining on the various tenants they had in the building. This gave current ownership enough doubt in their position to consider selling us this property.

 

 

Overall, just a fantastic deal for Dr. Kim. Per the lender on the transaction ‘…In over ten years in banking this was my favorite transaction to be a part of because of the impact it will have on Dr. Kim and her family long term.'

 

These types of transactions and scenarios are not exclusive to just a few of our Dentists and Specialists across the Southeast. These types of scenarios are available to all dentists. The difference is having a well-prepared game plan as it pertains to your Practice’s Real Estate. Whether you are in a leased space or own a space; having your road map to Maximize Your Profitability Through Real Estate can be the difference in hundreds of thousands of dollars throughout your career."

 

Whether you are evaluating a lease renewal in your current space, exercising certain options within your lease, evaluating your current space vs. what the market bears, having a team of experts guide you in your next CRE transaction can be the difference in achieving the best terms possible.

 

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