Trinity Partners Announces $26 Million Sale-Leaseback of North Carolina Healthcare Portfolio
Trinity Partners is pleased to announce the recent sale-leaseback of seven medical office buildings in the EmergeOrtho real estate portfolio. The seven EmergeOrtho buildings, located in the Hickory-Lenoir-Morganton MSA and Wilson, North Carolina areas, totaled 84,909 SF and were sold to Broadstone Net Lease, Inc. (BNL), a privately offered, publicly reporting real estate investment trust (REIT) managed by Broadstone Real Estate, LLC (Broadstone).
Trinity Partners’ Triangle Investment Sales team represented 17 doctors from four limited liability corporations / real estate ownership entities in the transaction. Team members included the following brokers: Sam DiFranco (SIOR, CCIM, CEA), Sam DiFranco, Jr. (CCIM), Mark Alviano, and Dylan Heafner.
The Trinity brokerage team specializes in healthcare real estate, and worked closely with EmergeOrtho to allow them to take advantage of the lack of quality healthcare investment opportunities available within the marketplace while diversifying their real estate investment opportunities.
“Healthcare portfolios present the opportunity for us to become creative with potential opportunities for a wide range of owners and investors,” said DiFranco. “Every deal is different, involving a range of stakeholders and requirements. Our experienced team assembled a portfolio that fit the institutional owner’s investment criteria, creating a win-win transaction for everyone involved.”
UPREIT transactions, (where “UPREIT” stands for Umbrella Partnership REIT), provide a tax deferred exit strategy for owners of real estate who might otherwise recognize a significant taxable gain in a cash sale of a highly-appreciated property with a low tax basis. As a result of this transaction, the sellers contributed $8.3 million out of the $26 million transaction total into the operating partnership of BNL, enabling the owners to exchange low cost-basis real estate for an interest in a professionally managed portfolio that is diversified by geography, property type, tenant, and lease duration. BNL currently owns 15 commercial properties in North Carolina, and more than 426 properties nationwide.
” We are thrilled to welcome seven EmergeOrtho properties to the BNL portfolio,” said Chris Czarnecki, Chief Executive Officer of Broadstone. “The UPREIT component of this transaction was an attractive option for the sellers, and a differentiator for us as a buyer in a competitive marketplace.”
DiFranco has a well-established relationship with EmergeOrtho (formerly Triangle Orthopaedics). He’s served as their real estate broker and counselor for the past 15 years, most notably responsible for the helping them execute their largest real estate transaction ever: a $63.2 million medical office portfolio sale-leaseback to an institutional REIT in 2015.
“Sam made us aware of the opportunity to sell in an ideal marketplace for disposition of our assets while enabling our owners to participate in a 721 exchange with the buyer, diversifying their equity and deferring their tax obligations. It was very creative from the start, and Sam and the Trinity team was able to bring $2 million in proceeds over an unsolicited offer we originally received,” noted Jim Carrier, CEO, EmergeOrtho.
“It’s rewarding to work with a client like EmergeOrtho,” said DiFranco. “Through the years, we’ve developed a trusted partnership as we’ve grown in our respective industries. I’m honored to continue to be able to work with their incredible team and quality real estate portfolio.”
ABOUT TRINITY PARTNERS
Trinity Partners is a full service commercial real estate firm serving corporate users and institutional owners throughout the United States, with nine service lines ranging from landlord and tenant representation to property management and investment sales. Trinity currently leases and/or manages over 17 million square feet of space across the region through our three offices in Charlotte and Raleigh, North Carolina, and Greenville, South Carolina.
ABOUT BROADSTONE NET LEASE, INC.
Broadstone Net Lease (BNL) invests in freestanding, single-tenant, triple-net leased properties located throughout the United States, primarily via sale and leaseback transactions. With a diversified portfolio of over 426 healthcare, industrial and retail properties in 37 states, the REIT targets individual or portfolio acquisitions within the $10 million to $200+ million range.
There are currently more than 2,000 shareholders in BNL, which is externally managed by Broadstone Real Estate, LLC. BNL remains open for new investment by accredited investors on a monthly basis, with a minimum investment of $500,000. Shares are offered directly by Broadstone via private placement. Please see certain important disclosures regarding BNL at broadstone.com/disclosures.
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