New MedicalOfficeBuilding Projects with Physician Ownership Below is some background on our medical office projects. Wise Inc. has been partnering with physicians for the last 10 yrs to develop tailored medical office facilities. We remain the real estate partner with physicians in over 90 projects in eight states. Wise offers three options for the physicians: Ø Development and Construction Ø Build-to-Suit Lease Ø WiseWealthBuilding Equity Plan In the Development and Construction Option Wise will oversee the total development and construction project for the owner based on a pre-determined price. In this case the client is responsible for the financing and has 100% ownership of the building. In the Build-to-Suite Lease Option Wise will construct, finance and own the project and lease back the space to the client through a lease. In the Wise Wealth Building Equity Plan Option the client becomes a partner/owner with Wise in the Real Estate Project. The essence of The Wealth Building Equity program is: 1. Wise finances and guarantees the mortgage (25 yrs) 2. The client puts no money down. The Client does not guarantee any portion of the mortgage. 3. The client does guarantee the long term lease 4. The client receives ownership day one (30%) 5. The client receives cash flow day one (30%) 6. The project is an A to Z turnkey development and Construction process 7. A Phase I of a Project Development Agreement is completed to determine the feasibility and provide information for a fully informed decision to proceed. This preliminary engineering and feasibility are done at a fraction of the typical project. The Phase I activity includes: Ø Site selection options Ø Preliminary engineering assessment Ø Qualification and quantification of the client’s space requirements Ø Project pro forma Ø Lease requirements Ø Legal documents review The cost of the Phase I is shared equally between Wise and the client ($1.00 per square foot for the client and $1.00 per square foot for Wise). These contributions cover the activities outlined above. If The client decides to proceed with the project their contribution is credited to the lease costs in the initial months of the lease. Wise has partnered in surgical centers, urgent care sites, imaging centers, MOBs, and other physician and dental buildings. The program allows you to free up your capital for core business uses. Wise can bring reduced financial costs with bond issues and other financing tools at its disposal. That increases your monthly cash flow. The program economics require that we work with a minimum of 10,000 to 12,000 square feet. This means that the fixed costs of the land, the architectural design and other professional costs can be spread over a larger number of sq.ft. This also means that it is important to have partners that can commit to leasing 10,000 to 12,000 sq.ft. Over the first 10 years the building would generate approximately $1.0 Million in equity and cash value for the physicians. A Limited Liability Corporation (LLC) owns the building. Physicians own 30% of that corporation. Major decisions require unanimous consent of all the owners. I would encourage you to look at the video for more information and to get an idea of some of our projects. For more information or to discuss this concept in more detail please contact me at 813-785-7398. |