PaulDickTeam

SUCCESS STORIES

7430 Shadeland Medical Center

The 7430 Shadeland Medical Center was built in 1986 by the Colon & Rectal Care medical group. The 22,325 SF building was designed to be an integrated building that included the group’s patient clinical space, administrative offices, and surgery center.  The building had additional space for other medical tenants. Over the last 30+ years, the practice changed doctors/owners, tenants vacated the property, and the condition of the property declined with age. The owners’ strategy had been to build equity by using the property income to pay down the mortgage, however the value of the property was declining because of minimal reinvestment in it.

In 2017, the doctors/owners sold the majority interest in the medical practice and surgery center business to Community Hospital.  The doctors also determined to sell the property; however, the market value of the property was only a little higher than the mortgage amount. The PaulDickTeam implemented a two-year strategy to cost-effectively build cash flow and asset value in preparation for the sale. The strategy included: coordinating the remodeling of the common areas, offering existing tenants and prospective tenants building signage (prior to this the building did not have tenant signage), leasing and remodeling the vacant suites, and renewing existing tenants for extended lease terms. 

Despite being at the peak of the COVID pandemic, the Team increased occupancy to 91%, and the weighted average lease term to 4 years. The property sale closed in approximately 90 days from being put on the market, for 99% of the asking price.