The Challenge: Assist a physician in locating a building for purchase within a specific budget in the high-priced market of Alamo Heights.
The physician’s desire to own, along with unhappiness with the current landlord, drove the physician to find a building to purchase. There is little medical office inventory in Alamo Heights for lease and even less for purchase.
It begins by networking in the community and aligning ourselves with strategic partners. Knowing a doctor is looking to purchase a building, the business partner provides the doctor a package containing relevant information about who we are and what we do and asks the doctor to reach out to us for assistance. The doctor contacts us, and we meet with him to learn about his strategy moving forward. After several meetings and discussions with the doctor to further evaluate his needs and clarify market expectations, we begin compiling all available properties for sale in Alamo Heights.
Locating suitable properties is accomplished several ways. First, we perform a search through a variety of real estate search engines. Second, we contact all listing brokers in the area by phone and email to inquire about availability and inform of our space needs. Third, we drive the area to view buildings and find any properties that may fit our client’s needs.
Through all of this due diligence, we found a unique opportunity for our client. Though the property was listed for more than the doctor’s original budget, we coordinated a tour of the building. Upon seeing the property, the doctor, his practice and his family knew this was the building for them. We provided the doctor with a list of bank contacts to begin working through the loan process. Even with existing income on the property, the first bank was not able to approve the doctor. However, through our long list of contacts in the market, the doctor was able to secure a loan commitment from another bank. So, with a lease expiration and bank approval in mind, we created a proposal for purchase which was inclusive of various business terms. Using both experience and negotiation skills, we had a sales contract drafted based on the agreed-upon terms. Through the feasibility period of the contract, we continued to utilize our contacts by having inspections performed on the building to ensure a smooth closing and delivery of a building with no surprises.
This was certainly a case in which we exceeded expectations. As a direct result of our proposal for purchase and persistence in the market, we secured a property in a very limited market with terms most favorable for our client and acceptable for the bank. In fact, the purchase price was more than 30 percent lower than the original asking price. To make this happen, we were able to get creative with financing and have the seller carry a percentage of the purchase price to help fund the down payment for the bank. Through all of our resources and market intelligence, we provided an opportunity to our client that he otherwise may not have had access to or the knowledge to pursue. The most rewarding aspect is seeing a client happy with the end result!
REATA Real Estate Services LP is a full-service commercial real estate company based in San Antonio. David Ballard, CCIM, Partner, and Parker LaBarge, Associate, specialize in medical office transactions and provide comprehensive real estate services to the healthcare industry. Contact Ballard at 210-841-3239 or firstname.lastname@example.org or LaBarge at 210-841-3207 or email@example.com.