Transactions
These situations reflect how properties are evaluated, decisions are made and what outcomes can be achieved.
Each case is different, but the objective remains the same: to understand what is in place, identify what matters, and move forward with clarity.
CASE 1 — Medical Office: Sell Immediately or Lease the Property — Sherman, Texas
Situation
A medical group owned a condominium office adjacent to a hospital facing potential closure. The group planned to sell immediately as they moved to a newly constructed facility even though market conditions indicated a sale would result in a significant loss.
What Needed to Be Understood
The key questions were:
- Was immediate sale of the property the only viable option?
- Were proceeds from sale of the vacated property immediately needed.
- Could time be used to improve outcome?
- How was uncertainty surrounding the hospital impacting value?
Assessment
Market analysis confirmed that a sale under current conditions would recover only a portion of the original investment. Lease demand for medical space in the area remained stable. Lease of the property would allow time for determination of the disposition of the adjacent hospital and the income generated from a lease would offset a good portion of the anticipated loss.
Actions
- Property was offered For Lease.
- Appraisal of the property was secured, and the lease agreement was structured to include an Option to Purchase at the established appraised value.
- Property was leased for 5 years.
Outcome
The tenant purchased the property. Proceeds from the sale provided a reasonable return on investment.
CASE 2 — Lease Renewal Denied: Medical Practice Relocation — Austin, Texas
Situation
A physician with long-term tenancy was denied renewal of their lease. This came at a time when patient visits had declined due to the COVID-19 pandemic. This decline in income made relocation unlikely.
What Needed to Be Understood
The situation required clarity:
- Why was renewal denied and was there a way to resolve the reasons for denial?
- Was remaining in place feasible under the “holdover” terms of the lease agreement?
- Was relocation possible in view of diminished flow of revenue and lack of funds on hand?
Assessment
Review of the lease and landlord discussions revealed the following:
- The right of renewal had expired.
- Parking usage exceeded the limitations stipulated in the agreement (number of patients served expanded over time.)
- Space had already been offered to another tenant with few parking requirements.
- Funds for relocation were not available.
- Staying in place by holding over was not possible since the rental rate would double.
- Relocation would cause 90-day suspension of Medicare reimbursements.
Action
- Identified and evaluated alternative locations.
- Secured grant and financial support to fund the practice.
- Negotiated alternate lease space providing free rent to offset cost of relocation.
- Assisted with space planning and build-out coordination.
- Resolved regulatory delay in Medicare reimbursement.
Outcome
The practice successfully relocated to a suitable facility with improved functionality and parking. Medicare reimbursement delays were resolved, allowing for an uninterrupted flow of income.
CASE 3 — Retail Center Turnaround — Medford, Oregon
Situation
A 75,000 square foot commercial property, originally developed as a retail discount outlet was experiencing vacancy of nearly 75%. Property taxes were unpaid for more than 2 years and notice from the County of pending auction had been received. The majority of accounts receivable were over 60 days delinquent. Ownership indicated they had no clear path forward.
What Needed to Be Understood
The issue was not simply vacancy. The questions were:
- Was the original discount center concept still viable?
- What was the nature of financial and legal action pending?
- Could the property be repositioned to serve a different tenant class?
Assessment
A review of leasing strategy, financial condition, and tenant structure revealed the following:
- Marketing was focused on a tenant class that had repeatedly failed.
- The triple-net provision within current lease agreement was not being enforced.
- Current operating income was insufficient to cover expenses.
- There was an Immediate risk of foreclosure by tax authority and lender.
Action
A review of the market area indicated that the property was no longer viable as a discount retail center. Surrounding residential development suggested an opportunity to reposition the center toward higher-end retailers offering the needs of a growing number of new homeowners.
- Negotiated with the County to defer tax enforcement to allow time for repositing the property.
- Secured lender cooperation to allow time for leasing.
- Redesigned marketing to address retailers aligned with surrounding residential growth.
- Established competitive lease rates to attract the newly identified tenants.
Outcome
Within 10 months occupancy increased to approximately 80%. The property was sold at a value sufficient to satisfy past-due taxes, outstanding debt, and transaction costs. The new ownership expanded the property on unused land to add 10,000sf of medical office space which was leased in less than 6 months.
The outcome was not the result of a single solution, but a series of coordinated decisions—each based on understanding what the property was, what it was not, and what it could become.
Each of these situations required a different path forward—but in every case, the outcome depended on understanding what was truly at risk, what was possible, and how to move forward with clarity.