Case Studies

Case Studies

 

Hear from other veterinary real estate owners about how Terravet worked with them to create custom real estate solutions.

 

Hear from other veterinary real estate owners about how Terravet worked with them to create custom real estate solutions.

 

Hear from other veterinary real estate owners about how Terravet worked with them to create custom real estate solutions.

 

Wheat Ridge, Colorado – Develop a New Facility Then Sell the Real Estate

Wheat Ridge Animal Hospital had operated out of a 12,000-square-foot facility for many years, but as the specialty hospital grew dramatically, it felt as though the building was bursting at the seams. The veterinary owners of the building and the hospital had great plans to expand to meet the demand for the level of care provided by their board-certified specialists, and the owners felt the practice was well-positioned to become the premier specialty and emergency veterinary hospital in Denver. However, the hospital leadership knew that the existing facility would not work for them. Wheat Ridge needed a state-of-the-art facility that could facilitate the anticipated growth.

The leadership team developed a detailed plan for the future – a state-of-the-art, 37,000-square-foot facility that represented the gold standard for specialty/emergency medicine. Handing the project over to a developer without the proper experience in the veterinary space could compromise their vision – and would be incredibly expensive as the development fees could grow to more than $1 million on a project of this scope.

Instead, the hospital leadership team decided to develop the project themselves while initiating conversations with Terravet. Terravet expressed interest in the property and provided an offer to buy the building from the ownership group  within 60 days of receiving a Certificate of Occupancy. Through its relationship with Terravet, the leadership team was able to negotiate a fair long-term lease that ensured long-term control of the facility while maintaining some of the economics that would otherwise have gone to a developer.  The veterinary real estate owners were able to develop the building they envisioned, with the knowledge that they had a committed buyer waiting to acquire the real estate.

Rockaway – Absentee Landlord

Terravet was approached by a husband-and-wife veterinarian team that had purchased a  practice in New Jersey. The veterinarian from whom they had purchased the practice  had retained the real estate and had begun to neglect the property.  The deferred maintenance on the building had begun to infringe on the husband/wife practice owners' ability to recruit veterinarians and provide top-of-the-line service to their clients. The new owners approached Terravet about purchasing the real estate from their absentee landlord. Terravet was able to strike a deal with the landlord to purchase the property, and in exchange for the tenants’ signing a new long-term lease, Terravet committed to putting $200,000 into the property for improvements. Since Terravet acquired the property, the tenants’ top-line revenue has increased significantly, and the owners plan to add another veterinarian in the near future to further grow their business.

West Hartford – Simultaneous Practice Sale and Need for Expansion

The veterinarian owners of a large general practice/specialty emergency hospital had sold their practice to a corporate group while retaining the real estate. The hospital continued to grow after it converted to 24/7 emergency hours and succeeded in recruiting additional boarded specialists. The corporate owner of the hospital was intent on building for the future and dramatically increasing the building’s footprint in order to ensure long-term growth. The veterinarian property owners were not interested in contributing the capital needed to finance the expansion of the building, and as a result the property owners and the corporate group turned to Terravet to purchase the property. Terravet was able to provide the owner with a strong offer due to the knowledge that they would be able to expand their investment in the subject property. As a result, the property owners received full value for their property, the tenant gained a development partner to facilitate future growth, and Terravet was able to deploy its capital to help expand a facility for a great operator with strong long-term growth potential.

Liverpool – Simultaneous Practice and Real Estate Sale

The veterinarian owner of a large general practice in upstate New York was ready to cut back, sell his practice and build the lake house of his dreams. None of the corporate groups that were a “fit” to acquire the practice wanted to also the buy the building. Terravet was approached by the practice owner and a corporate group about purchasing the building and leasing it back to the corporate group so that it could continue to house the veterinary practice. Terravet provided a competitive offer to purchase the real estate that enabled the owner to build his dream lake house and avoid the challenges of being a landlord. Terravet also committed to a “refresh” of the reception area as part of the transaction, investing approximately $100,000. The veterinarian real estate owner viewed the transaction as a “win/win” that enabled him to partner with the right corporate group for him, while both providing capital for a small renovation and providing him with enough liquidity to build his lake house.

Wheat Ridge, Colorado – Develop a New Facility Then Sell the Real Estate

Wheat Ridge Animal Hospital had operated out of a 12,000-square-foot facility for many years, but as the specialty hospital grew dramatically, it felt as though the building was bursting at the seams. The veterinary owners of the building and the hospital had great plans to expand to meet the demand for the level of care provided by their board-certified specialists, and the owners felt the practice was well-positioned to become the premier specialty and emergency veterinary hospital in Denver. However, the hospital leadership knew that the existing facility would not work for them. Wheat Ridge needed a state-of-the-art facility that could facilitate the anticipated growth.

The leadership team developed a detailed plan for the future – a state-of-the-art, 37,000-square-foot facility that represented the gold standard for specialty/emergency medicine. Handing the project over to a developer without the proper experience in the veterinary space could compromise their vision – and would be incredibly expensive as the development fees could grow to more than $1 million on a project of this scope.

Instead, the hospital leadership team decided to develop the project themselves while initiating conversations with Terravet. Terravet expressed interest in the property and provided an offer to buy the building from the ownership group  within 60 days of receiving a Certificate of Occupancy. Through its relationship with Terravet, the leadership team was able to negotiate a fair long-term lease that ensured long-term control of the facility while maintaining some of the economics that would otherwise have gone to a developer.  The veterinary real estate owners were able to develop the building they envisioned, with the knowledge that they had a committed buyer waiting to acquire the real estate.

Rockaway – Absentee Landlord

Terravet was approached by a husband-and-wife veterinarian team that had purchased a  practice in New Jersey. The veterinarian from whom they had purchased the practice  had retained the real estate and had begun to neglect the property.  The deferred maintenance on the building had begun to infringe on the husband/wife practice owners' ability to recruit veterinarians and provide top-of-the-line service to their clients. The new owners approached Terravet about purchasing the real estate from their absentee landlord. Terravet was able to strike a deal with the landlord to purchase the property, and in exchange for the tenants’ signing a new long-term lease, Terravet committed to putting $200,000 into the property for improvements. Since Terravet acquired the property, the tenants’ top-line revenue has increased significantly, and the owners plan to add another veterinarian in the near future to further grow their business.

West Hartford – Simultaneous Practice Sale and Need for Expansion

The veterinarian owners of a large general practice/specialty emergency hospital had sold their practice to a corporate group while retaining the real estate. The hospital continued to grow after it converted to 24/7 emergency hours and succeeded in recruiting additional boarded specialists. The corporate owner of the hospital was intent on building for the future and dramatically increasing the building’s footprint in order to ensure long-term growth. The veterinarian property owners were not interested in contributing the capital needed to finance the expansion of the building, and as a result the property owners and the corporate group turned to Terravet to purchase the property. Terravet was able to provide the owner with a strong offer due to the knowledge that they would be able to expand their investment in the subject property. As a result, the property owners received full value for their property, the tenant gained a development partner to facilitate future growth, and Terravet was able to deploy its capital to help expand a facility for a great operator with strong long-term growth potential.

Liverpool – Simultaneous Practice and Real Estate Sale

The veterinarian owner of a large general practice in upstate New York was ready to cut back, sell his practice and build the lake house of his dreams. None of the corporate groups that were a “fit” to acquire the practice wanted to also the buy the building. Terravet was approached by the practice owner and a corporate group about purchasing the building and leasing it back to the corporate group so that it could continue to house the veterinary practice. Terravet provided a competitive offer to purchase the real estate that enabled the owner to build his dream lake house and avoid the challenges of being a landlord. Terravet also committed to a “refresh” of the reception area as part of the transaction, investing approximately $100,000. The veterinarian real estate owner viewed the transaction as a “win/win” that enabled him to partner with the right corporate group for him, while both providing capital for a small renovation and providing him with enough liquidity to build his lake house.