501 Michael Debakey – Advisory Services Leads to Strategic Exit Plan and Sale

Matt Redd’s work on this project exemplifies the complexity of some of the projects he has worked on, particularly since there is a real estate component to it and a non-real estate component to this project.

What began as an advisory services initiative evolved into an exit strategy and ultimate sale of the property to benefit the group of investors represented by Redd Properties.

It features a 30-year-old Medical Office Building (MOB) owned by a group of doctors, many of whom had reached retirement age or would soon. Redd facilitated bringing in a new management team, renegotiated the land lease with the adjacent hospital (which owns the land) and had the property appraised.

Over a relatively brief period, the property was stabilized with occupancy levels above 90%. And then, as anticipated, doctors from the ownership group started to retire, which triggered the capital event and $3.5 million sale by Clinic Realty LLC. The sale was represented by Redd Properties. The buyer was a regional investor, Debakey Investors LLC.