Deal Close
August 20, 2026
Type
Health Care Facility, 25,000 SF
Price
$8,500,000
Nate Cleland
Healthcare Properties Team
Executive Summary
With roughly two years left on the tenant’s lease, this off-market healthcare property wasn’t a natural fit for traditional net lease buyers, who tend to avoid short-term renewal risk.
Greysteel instead sourced a buyer with an existing relationship with the veterinary tenant, capable of negotiating a lease extension during
escrow — and that buyer turned around and sold the stabilized asset to Realty Income Trust at a healthy profit almost simultaneously.
The Challenge
A roughly two-year lease term made the asset unattractive to most single-tenant net lease investors, who generally want longer-term certainty before underwriting a purchase. Closing delays during the process further complicated timing.
The Solution
Greysteel identified Leon Capital Group, a national medical investor with an existing relationship with the veterinary tenant (NVA) through other properties, giving Leon the ability to negotiate a lease extension in escrow that a typical buyer couldn’t have secured. To manage closing delays, Greysteel negotiated additional non-refundable deposits for each day the closing extended.
Results
- $8,500,000 sale price on a short-lease-term asset most net lease buyers would have passed on
- Lease extension negotiated during escrow, converting a two-year-term liability into a marketable asset
- Buyer simultaneously resold the stabilized property to Realty Income Trust at roughly a 6.5% cap, netting an
estimated $1-2 million profit - Closing-delay risk managed through non-refundable, per-day deposit terms
“Greysteel sourced Leon Capital Group, which had an existing relationship with the veterinary tenant and could execute a lease extension during escrow. The team also navigated closing delays by negotiating additional non-refundable deposits for each extension day, ultimately preserving the transaction and creating value through the extended lease term.” — Nate Cleland, Greysteel Lead Deal Contact, Health Care Properties
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.
