Real Estate Valuation
HealthCare Appraisers’ team of real estate valuation experts brings years of experience and a thorough understanding of the business, financial, and legal issues surrounding real estate transactions within the healthcare sector. HealthCare Appraisers approaches the valuation of healthcare real estate with acknowledgment of the unique context of healthcare regulation and generally accepted valuation principles.
For almost every valuation, HealthCare Appraisers considers the three most widely accepted valuation approaches (the Income, Cost and Sales Comparison (Market) Approaches), and applies these Approaches as applicable, depending upon the specific facts and circumstances of the valuation.
These valuation approaches are conformed, as required, to be in compliance with federal regulations (e.g., the Stark and Anti-kickback statutes) such that (i) no consideration is given to the volume or value of potential referrals; and (ii) potentially non-arm’s length market values are not relied upon in reaching our conclusion of value.
- Fair Market Value Opinions – For large and/or complex real property transactions, a member of our real estate valuation team will conduct an on-site inspection as a key aspect of the valuation process.
- “Desktop” Fair Market Value Opinions – Whether for a lease or purchase, HealthCare Appraisers can oftentimes complete an FMV analysis without the need for an onsite inspection, thereby saving time and money.
- Purchase Price Allocations (ASC 805 Business Combinations) – We are experts in helping you to ensure that your organization is in compliance with ASC 805 by following the regulations required for purchase price allocations for tangible and intangible property. With our knowledge and years of experience in purchase price allocation transactions, we are able to assist in maintaining or achieving compliance while mitigating any challenge of the valuation from outside auditors or the SEC.
- Commercial Reasonableness Opinions (CRO) – Oftentimes, healthcare entities will enter into joint venture (JV) arrangements with real estate developers for new construction projects. Our team has experience in analyzing JV development agreements and can evaluate the commercial reasonableness of each component of the JV arrangement.
HEALTHCARE REAL ESTATE VALUATION CLIENTS
Our professionals have an in-depth understanding of the numerous types of healthcare facilities and a multitude of various compensation relationships between landlord and tenant. This differentiates HealthCare Appraisers from the competition. Many appraisers simply do not understand the nuances of health care, the relevant value drivers, terminology, reporting metrics, etc.
We provide real estate valuations and services for the following healthcare facilities:
|- Acute care hospitals||- Ambulatory surgery centers (ASCs)|
|- Cancer centers||- Community hospitals|
|- Diagnostic facilities||- Laboratory and R&D facilities|
|- LTAC hospitals||- Medical centers|
|- Medical office buildings (MOB)||- Physician Practices|
|- Rural health clinics||- Rehabilitation centers|
|- Teaching hospitals||- Specialty hospitals|
FOCUSED ON OUR CLIENTS
Our due diligence involves review of real estate-related documents, investigating the acuity level of the space, discussions with owners and business administrators, research of industry trends and local conditions affecting the market, and a thorough financial analysis of the facility as applicable. Generally, financial analysis will include a review of lease documents, historical financial statements, a review of financial projections, capital expenditures and benchmarking to industry norms.