Strategic Advisory Services Deliver Strategic Results

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The Challenge

Community hospital network Steward Health Care System engaged Cushman & Wakefield to address the significant capital needed for various efforts including base building and life safety systems enhancements. Steward’s lease and acquisition activities were reactionary, not strategic, therefore resulting in higher costs to the system and misguided real estate decisions. The final transactions allowed Steward to extract strategic capital from its real estate holdings while maintaining tenancy and control.

The Solution

Cushman & Wakefield worked with Steward to structure a master lease over the entire MOB portfolio and subsequently marketed the portfolio for sale.

The Result

Through the master lease structure, we raised over $100 million and helped Steward receive financing for capital improvements necessary for the health system’s portfolio through a monetization to a private REIT. Our Group was subsequently hired to manage the entire MOB portfolio in order to generate operating efficiencies as well as standardize financial reporting. This provides Steward and the new owners with all the tools necessary to manage the portfolio.

Additionally, Cushman & Wakefield has been engaged to assist Steward with all future real estate transactions. Weekly strategic meetings are in place to identify opportunities in the market, manage the transaction activity for the MOB portfolio including negotiations with physician tenants, and implement a proactive approach to all real estate matters.