Dr. Siva Gummadi, managing physician of the Cardiovascular Institute of Central Florida, said “I highly recommend Hamric Capital to other physicians who are evaluating their practice and real estate strategy.  Hamric Capital’s expertise and process added tremendous value to our property transaction.  Superb execution.”

The Cardiovascular Institute of Central Florida (CVI) engaged Hamric Capital to explore monetization of the five medical office buildings and surgery center the practice occupies in the Ocala and Villages area of central Florida.

CVI, one of the most successful cardiology practices in the region, had recently completed a private equity transaction with a leading, national cardiology platform.  Following the practice transaction, the physician partners were interested in unlocking liquidity from their medical office buildings and identifying a capital partner for future expansion and development projects.

Here are three elements that made this transaction unique:

• Optimization: Following a private equity transaction with the practice, the economic and legal details of the leases have an enormous impact on the value of the real estate occupied by the practice.  Hamric Capital collaborated with CVI, the national platform and the buyer to optimize the leases which resulted in a transaction that maximized sale proceeds for the physician owners of the real estate.

• Solving for Alignment with Diverse Ownership: The 5-building portfolio involved three different physician ownership groups in addition to the local practice entity and the national PE-sponsored platform.  Each group had priorities that needed to be addressed.  Hamric Capital was able to leverage its deep institutional capital relationships and experience to structure the transaction to achieve a successful outcome that benefitted each group.

• Condominium Restructuring: Two of the properties existed inside of a condo declaration that added complexity to the transaction. Hamric Capital worked with both the buyer and seller to facilitate solutions that amended the condo framework.  This solved the alignment concerns and provided CVI the opportunity to continue with future development plans.  

Hamric Capital engaged a range of institutional investors through a strategic, highly-structured marketing process which yielded numerous competitive offers.  The result was a successful sale of the real estate at optimal terms to a thoughtfully selected capital partner.  Furthermore, the capital partner can be a resource to the practice for future projects and expansion.

The transaction was led by Dana Hamric, Richard Gerakitis and Christine Gorham of Hamric Capital.