Deal Close
July 30, 2026
Type
Health Care Facility, 3,176 SF
Price
$1,475,000
Chuck Rich
Healthcare Properties Team
Executive Summary
The family that built this property and its veterinary practice back in the 1950s had a tenant asking to renew ona series of five one-year options.
Greysteel advised against it, securing a five-year extension instead, then sold the stabilized asset to a professional real estate owner positioned to expand the facility and negotiate a longer-term lease going forward.
The Challenge
A one-year-option lease structure offers a landlord little security, whether they intend to hold or sell — and the family, without professional real estate experience, needed to understand why that mattered before they’d agree to push back on their tenant’s preferred terms.
The Solution
Greysteel explained the risk plainly: even if the tenant eventually wanted to move, relocating a veterinary practice in that market would realistically take three to five years, meaning the family didn’t need to grant the flexibility the tenant was asking for. The team held the line at a minimum five-year extension before bringing the asset to market.
Results
- $1,475,000 sale price, at a strong cap rate and price per square foot for the market
- Five-year lease extension secured in place of a proposed series of one-year options
- Sold to a professional owner-operator planning facility expansion and a longer-term lease
- Delivered a stabilized, marketable asset from what began as an unfamiliar landlord relationship
“Ahead of the sale, Greysteel advised the ownership through lease negotiations, securing a five-year extension rather than a series of one-year options that offered limited certainty. The stabilized lease supported strong pricing, while the property was ultimately sold to an experienced real estate owner positioned to expand the facility and pursue a longer-term lease with the tenant.” — Chuck Rich, Greysteel Lead Deal Contact, Health Care Properties Team
Greysteel Advisory Expertise
Greysteel is a commercial real estate advisory firm specializing in investment sales and debt and structured finance, serving private investors, middle-market operators, and institutional clients nationwide.
The firm provides sector-focused advisory across multifamily, healthcare, and affordable housing and other commercial real estate asset classes, delivering market intelligence, capital markets expertise, and disciplined execution.
