Real Estate Investment Fund
Our award winning real estate service lines are a product of our knowledge of real estate and our understanding of the healthcare business. Below are a few examples of how we have created a competitive advantage for our clients by Saving Money, Saving Time and Adding Value.
The Healthcare Group generated $6 million in revenue enhancement within 12 months of being hired on a 3 million-square-foot healthcare account. Of which, 30% was generated by third party leasing, 70% by operating expense reduction.
As one of several providers of leasing and management services for a large, national healthcare REIT, the Healthcare Group has won more awards for overall tenant satisfaction than any other service provider.
Upon transition of property management to the Healthcare Group, the management team audited, re-structured and renegotiated the parking contracts of two on-campus medical office buildings owned by an investor-client. The new contracts resulted in increased revenue of over $360,000 per year.
By applying the principles of its Cost Compression strategy, the Healthcare Group was able to renegotiate and restructure the janitorial contracts for a 2.3 million square foot MOB portfolio, thus reducing janitorial costs by 17%.
Shortly after an investment management firm acquired a specialty hospital with a long-term lease to a hospital operator the operator filed bankruptcy. Within 120 days of being hired to re-lease the hospital, Lincoln Harris sourced and secured a new operator / tenant, resulting in a long-term lease that preserved 100% of the asset value.
Increased NOI via Cost Compression
A REIT client hired Lincoln Harris CSG to on-board a newly acquired 1.1 million SF portfolio of MOBs in multiple states. Within the first year, Lincoln Harris was able to reduce overall Opex by 4.3%, thus increasing the portfolio NOI by $330,000/yr.
The Healthcare Group handled lease administration and document management for a national healthcare client with over 1200 locations. Over the course of 18 months the Healthcare Group re-engineered the processes and procedures resulting in: (1) SOX compliance, (2) 100% migration to an electronic platform, (3) dramatic increase in data integrity, (4) development and adoption of comprehensive policies and procedures, (5) increased client satisfaction, and (6) a 10%+ reduction in delivery cost.
Immediate Cost Savings
Within five months of taking on the leasing and management assignment of a 1.2 million-square-foot MOB portfolio, the Healthcare Group was able to generate significant cost savings. Savings included; a 46% reduction in landscaping, recovery of $230,000 in errant or un-billed utilities, and recovery of over $100,000 in uncollected operating expense reimbursables.
In the midst of the hot, 2014 – 2016 market, a national healthcare REIT hired the Healthcare Group to source off-market, class A MOBs in the N Texas market. The Lincoln Harris Team was able to source 7 MOBs with a value in excess of $115 million.
The Healthcare Group was part of the team that analyzed, segregated and monetized a portfolio of over 150 medical buildings for a large healthcare system. The Healthcare Group’s role was to provide complete property / portfolio due-diligence including the implementation of accounting solutions that enabled the portfolio to be separated from the corporation.
After three years of no new leases, an investor hired the Healthcare Group to lease an 81,000-square-foot two MOB portfolio. The Healthcare Group was able to lease the MOBs to 90% and subsequently sell them for a premium price of $281/SF – exceeding the seller’s expectation.
As one of 5 providers of leasing, management and compliance services for one of the largest healthcare systems in the US, the Healthcare Group has won more leasing and management performance awards than any of the other providers.
Lincoln Harris CSG negotiated a 205,000 RSF lease on behalf of a developer client for a best- in- class clinical and research facility. The tenant was a large, market leading system. The resulting yield on cost was in excess of 200 bps above market.
The corporate restructure of a national healthcare client resulted in the need to sell 17 properties and buy-out of 101 leases in less than 7 months. The Healthcare Group met the time requirements on both the sales and buyouts, with the gross sales exceeding indicative pricing by 6% and buy-out settlements averaging 32% of total remaining obligation.
One of the objectives of our Regional Analytics team is to mine for unbudgeted cost savings, an initiative that has rendered millions in recaptured cost savings for our clients. One recent example includes the recapture of $236,847 of OpEx overcharges for a 8,426 sf lease in Los Robles CA, which equates to a savings of $28.10 per square foot.