H2C Advises on the Sale/Leaseback of High Point Office Building in Coordination with Corporate Sale

 

NEW YORK — May 19, 2020 — Hammond Hanlon Camp LLC (“H2C”), a healthcare-focused strategic advisory and investment banking firm, served as the exclusive financial advisor to Advanced Home Care, Inc. (“Advanced Home Care”), a post-acute healthcare company owned by 13 not-for-profit healthcare systems in the Southeast, for the sale/leaseback of its regional headquarters building in High Point, N.C. (the “Property”). 
 
First developed in 1999 and later expanded in 2005 and 2008, the 102,710-square-foot, single-story office building served as the company’s corporate headquarters, occupied by more than 500 employees. In early 2020, H2C’s mergers and acquisitions (“M&A”) team, the sell-side advisor to Advanced Home Care, assisted the company in the sale of its medical equipment business to AdaptHealth Corp. (NASDAQ: AHCO), a leading provider of home medical equipment and supplies, and the sale of the company’s home health and infusion operations to BrightSpring Health Services, a private company backed by KKR. As part of the M&A transaction, AdaptHealth Corp. agreed to enter into a long-term master lease of the Property with a BrightSpring Health Services sublease, allowing Advanced Home Care to maximize its cash proceeds. 

 

H2C conducted a highly efficient and thorough marketing process for the Property that resulted in multiple offers, which were received as early as one week after launch. The transaction successfully closed simultaneously with the M&A transaction, demonstrating a well-controlled marketing and sale process. The price—$17.075 million, or $166 per square foot—was one of the highest prices per square foot achieved for a non-clinical asset in the Greensboro-Winston-Salem-High Point MSA.

 

An H2C team headed by Bill Hanlon, Principal, and Matthew Tarpley, Vice President, led the real estate transaction.

 

“This was a highly complex, multi-party transaction that required close coordination between our M&A and Real Estate teams to run a competitive and efficient process, maximizing the proceeds for our client’s 13 health system owners and ultimately closing the three related transactions simultaneously,” Hanlon said. Email Bill.

 

According to Tarpley, “The expertise and experience of our M&A team provided a deep understanding of the tenant’s operations and the utility of the Property, which allowed our Real Estate team to thoroughly convey the value to investors. This resulted in multiple offers and the eventual closing with a well-regarded, publicly traded REIT.”  Email Matthew.