Unlocking Liquidity for a Leading Oncology Practice in Central Florida
February 13, 2025
MFCC Portfolio: Unlocking Liquidity for a Leading Florida Oncology Group
Mid-Florida Cancer Centers (MFCC) engaged Hamric Capital to explore monetization of four medical office buildings, anchored by the practice, located in the metro Orlando area.
MFCC, the largest non-hospital provider of medical and radiation oncology services in the region, had recently completed a private equity transaction with a leading, national oncology platform. Hamric Capital worked with the physician partners and private equity platform to optimize lease economics in order to capture maximum value for ownership.
Dr. Neeraj Sharma, MFCC’s managing physician, said “I strongly endorse Hamric Capital to fellow medical groups. It is invaluable to have a partner that understands our medical practice, national platform and the evolving needs of our physicians. Hamric Capital brought smart strategy, the right capital and precision execution to our very successful clinical real estate transaction.
Here are three elements that made this transaction unique:
· Lease Restructure: Hamric capital assessed the lease rates and terms to determine a structure that would balance out the rent, based on clinical usage and location. This also included an adjustment of operating expense reimbursements and an extension of the lease term. The optimized leases paved the way for Hamric Capital to facilitate a structured sale to an institutional investor at maximal value and sale proceeds to the physician property partners.
· Parcel Subdivision: A challenge that existed was that one of the properties was located on a parcel that included excess land that was a development opportunity for the physician owners. In order to retain the development upside, Hamric Capital and ownership had to work with the county and local municipality to subdivide the existing parcel to include the property that was being sold and the adjacent parcel that could be developed. The transaction was bifurcated into separate closings in order for all contingencies to be successfully cleared. Ownership was able to accomplish their goal of transacting each property while maintaining the land for development.
· Separate Ownership Groups within Buildings: Two of the properties included ownership groups that owned a section of the building and not the entire structure. Hamric Capital gained owner consensus and solved for alignment to accomplish a win-win transaction for all stakeholders.
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.
The transaction was led by Dana Hamric and Richard Gerakitis of Hamric Capital.
