Healthcare Net Lease Group
beyond
going beyond
You are in very good hands. Whether
you’re exploring net lease for the first time or initiating your latest real estate transaction, working with Stan Johnson Company means partnering with a team of experienced professionals who is committed to your success. You will see it in our culture of responsibility and accountability; in how we strive to ensure the ideal fit between buyer and seller; or how integrity is always at the heart of all we do. You will also see it in our knowledge of your industry, your market and your property. Of course, our people are not simply real estate experts with a long track record of net lease and financial experience. They are focused on building long-lasting client relationships through a high level of service, collaboration and courtesy. From an employee’s first day on the job, our unique culture of mentoring and individual investment means you will always work with a world-class team who maintains the highest ethical standards. Ultimately, it’s about maximizing your success. Doing the little things right. Applying energy and intelligence to solve your toughest challenges. And going beyond your expectations on a regular basis. I am proud of our people, and confident you will enjoy working with such a dynamic and resourceful team.
Your office For more than 30 years, Stan Johnson Company has focused exclusively on the sale of net lease properties nationwide. Our firm’s collective Expertise, Teamwork, Track Record and net lease Specialization has earned our company the reputation of the Net Lease Authority® and enables us to consistently and efficiently maximize sales proceeds for our sellers in any market conditions.
Services
Expertise
Clients
Stan Johnson Company’s team of leaders and brokers has decades of collective net lease and financial experience.
• • • • • •
Track record We have an unequaled track record of more than $20 billion net lease transactions nationwide.
Teamwork Over 150 brokers, researchers, analysts and corporate staff collaborate daily, making Stan Johnson Company the largest team in the nation focused exclusively on net lease real estate.
• • • • • •
Investment Sales Corporate Sale Leaseback Financial and Market Analysis Tax Deferred Exchanges Capital Markets Lease Advisory
Institutions/REITs Private Equity Groups High Net Worth Individuals Developers Corporations 1031 Exchange Buyers
beyond We know net lease better than anyone Net lease transactions have been our sole focus for over three decades. We have completed billions in dealings across all geographies, net lease property types, and with all investor profiles. We understand the credit analysis, residual valuations, capital markets, and overall value drivers to maximize net proceeds and assure execution performance. Simply put, there is a difference—experience.
78%
Of our closings originate from marketing to our database
443 Total net lease transactions in 2015
95% Average ask to sale price percentage
450% Sales growth over 4 years
Healthcare Net Lease Group No one understands the value of specialization better than healthcare professionals By focusing exclusively on healthcare investment real estate, the Stan Johnson Company Healthcare Net Lease Group is better able to advise our clients on the issues and trends that affect healthcare real estate values. Our first goal when working with a client is to allow that client to stay focused on what they do best, while feeling confident that we are doing what we do best.
Healthcare Real Estate Monetization. Keeping pace with technology is critical to success in today’s
healthcare environment. More and more hospitals and physician groups are using their real estate as a tool to unlock capital to fund growth in the operations.
Physician-Developer JV Program. Physicians have the ability to create significant value in real estate through a net lease. We assist physician groups in creating equity in real estate with nothing more than the value they provide as a tenant. Sale Leaseback Advisory Services & Placements. The values for healthcare real estate can span a large
spectrum. Lease Terms, Rent & Expense Structure, Market Conditions and Tenant Credit are all factors in determining the value of a property. By working with Owner / Tenants, we can ensure maximization of real estate value, while maintaining long-term rights and control of the property.
Healthcare Real Estate Pricing Advisory. Understanding the market is critical. At any given time, we have a strong pulse on the healthcare real estate market and can provide ownership entities with current valuation feedback based on tenant credit analysis, comparable sales and the net lease investment market. Real Estate Compensation Structures. As physician partners start to think about retiring, or as new physicians are considered for partnership, it is paramount to differentiate between “creating” value and “maintaining” value. Transaction Management. Through our 30 years of experience as a real estate brokerage and advisory company, we have refined our processes and network of clients tailored specifically to the healthcare real estate market. This enables us to secure the most qualified investor at the best price. Forward Purchase Commitments. Through our healthcare real estate focus, we have developed an extensive network of specialized buyers. We are able to assist developers of healthcare properties by linking them with investors who are willing to make a commitment to purchase several months in advance of the delivery date.
Representative transactions
Arkansas Surgical Hospital North Little Rock, AR
My Dentist Portfolio
21 Locations throughout U.S.
$56,600,000
$38,000,000
Greater Peoria Specialty Hospital Peoria, IL
$1.5B In sales of healthcare assets across all segment types - in last 30 yrs
$30,200,000
Summit Medical Group MOB Florham Park, NJ
Reliant Hospital Austin, TX
$30,640,000
Deaconness Medical Center Oklahoma City, OK
$1.32B Single-Tenant Healthcare Transactions - in last 30 yrs
$45,600,000
$29,250,000
225 Total Single-Tenant Healthcare Transactions - last 30 years
$622M
80+
42%
In sales of healthcare assets across segment types since 2013
Healthcare transactions since 2013
Of Stan Johnson Company’s healthcare transaction volume over the last 25 years was conducted since 2013
Eye Institute of Texas Dallas, TX
Newburyport Medical Center Newburyport, MA
$25,500,000
$18,000,000
University of Michigan Health Center Canton, OH
$13,600,000
Hand to Shoulder Center Appleton, WI
Elite Care FSED Portfolio Texas
$18,500,000
$14,640,000
Terrace Park Professional Center Bettendorf, IA
$13,266,000
Representative transactions
Sierra Vista MOB San Luis Obispo, CA
$10,950,000
Veterans Affairs
New Port Richey, FL
$8,950,000
Hospital Corporation of America
Premier Surgery Center of Louisville
Scott & White Kingsland
DaVita Dialysis Center
Richmond, VA
Kingsland, TX
$1.7B In Sale Leaseback experience in last 30 yrs
$8,550,000
$4,400,000
Louisville, KY
$8,000,000
Olympia, WA
138+ Sale Leaseback deals - in last 30 years
$2,700,000
34 Sale Leaseback deals in 2015
Healthcare/office track record
Chicago, IL
New York, NY
San Francisco, CA
Atlanta, GA Los Angeles, CA Phoenix, AZ Houston, TX
Stan Johnson Company Office Location
Tulsa, OK
Location of a Healthcare/office closing
OFFICE $2.9+ Billion
HEALTHCARE $1.5+ Billion
Total Transaction Volume
Total Transaction Volume
136+ Office Transactions
225+ Healthcare Transactions
in 2015
in 2015
$218+ Million
$411+ Million
Total Transaction Volume
Total Transaction Volume
18+ Office Transactions
43+ Healthcare Transactions
Execution team biographies
Toby Scrivner Senior Director
Toby Scrivner joined Stan Johnson Company in May of 2006 and established the company’s first team of professionals dedicated solely to the sale of healthcare investment properties. By continuously monitoring the trends and changes within this unique niche of the net-lease market, Scrivner has proven himself as a knowledgeable resource to owners and buyers of healthcare property. Since joining the company, Scrivner’s team has closed over $860 million in healthcare real estate transactions. Responsible for all facets of the commercial real estate market including locating, analyzing and purchasing investment grade commercial properties, utilizing capital raised through syndication, and joint venture partnerships, Scrivner understands the needs of corporate real estate users and that makes him a valuable partner in the eyes of his clients. Scrivner has closed over $1 billion in transaction volume since beginning his commercial real estate career in 1996. Prior to joining Stan Johnson Company, Scrivner worked for Corporate USA Real Estate Services and Fults & Associates. Toby proudly served in the United States Navy and is a Gulf War veteran.
Jeff Matulis Senior Director
Jeff Matulis joined Stan Johnson Company in 2004 and is Senior Director within the firm and co-leads the Healthcare Net Lease Group with his business partner, Toby Scrivner. Disciplined in the specialty of Investment Sales, Jeff has been involved in the disposition of over 4.5 million square feet of commercial assets, exceeding a total value of $1.1 billion dollars on behalf of his clients. In 2007, Jeff and Toby formed what is now the company’s only team that focuses 100% on healthcare assets. This group specializes in providing healthcare real estate investors with acquisition, disposition and recapitalization strategies; assisting healthcare providers with strategic capital planning; and advising health systems and physician groups in their real estate disposition process. Jeff’s approach to success is with the client always at the front of his mind. Before joining Stan Johnson Company, Jeff was a field engineer with the global construction company, Hilti, Inc. His extensive technical expertise and analytical skills gave him the foundation to work with architects, engineers and contractors on detail design in commercial construction, and it also supported his relationships with key industry professionals. Jeff received his Bachelor of Science degree in Environmental Engineering from the University of Oklahoma.
Sarah Buckner
Becca Kirby
Property Marketing Manager
Senior Marketing/Research Specialist
Grant Wilkins Associate
Grant Wilkins joined Stan Johnson Company in 2011 as the Business Development Analyst in the Tulsa office. After 2+ years working under Stan Johnson, Harold Briggs and other members of the Executive Group, he transitioned to the production side as an Analyst for the Healthcare Net Lease Group of Toby Scrivner and Jeff Matulis. Now as an Associate, he specializes in working with owners/developers/physicians and their healthcare real estate needs. Prior to joining Stan Johnson Company, Wilkins worked as an investment sales professional specializing in retirement planning for Tulsa Public School officials and educators. His previous experience in investment sales along with SJC has provided him the foundation for analyzing netleased properties and the net-lease market. Wilkins received a Bachelor’s degree in Financial Economics from Emory University. He is Argus certified and holds non-active Series 7 and Series 63 licenses.
Colin Cornell Senior Analyst
Collin Cornell joined Stan Johnson Company in 2014 as an Investment Analyst in the Tulsa office. Most recently, Cornell has worked at Gregory W Group, an Institutional Investment Consulting Firm in Tulsa, as a Vice President. In this role, Cornell supervised a small team of research analysts, did direct consulting with clients, and prepared client reports detailing performance, strategy and outlook. Cornell started with this firm as an Intern while still in school, was promoted first to an Investment Analyst and most recently to Vice President. Cornell graduated from the University of Tulsa with a BSBA in Finance as well as Energy Management. Cornell holds a non-active Series 65 license.
Lanie Rea
Cheryl Turley
Director of Research
Senior Closing Administrator
Team organizational chart SENIOR LEADERSHIP & DEAL EXECUTION
TOBY SCRIVNER Senior Director
JEFF MATULIS Senior Director
Client Contact Strategy Development Investor Solicitation Underwriting & Analysis
GRANT WILKINS Associate
Local Market Expertise Buyer Selection Consultation Contract/Closing Negotiations Marketing Oversight
Buyer Contact Property Tours Service Relationships Capital Markets Expertise
ANALYSIS & PRODUCTION SUPPORT
COLIN CORNELL Senior Analyst Pricing Strategy Client Reporting Analytic Consultation
Financial Analysis Due Diligence Review Lease Abstracting
Escrow Management 3rd Party Management Execution Support
MARKETING & RESEARCH SUPPORT
BECCA KIRBY Senior Marketing/Research Specialist Market Research Website Production & Maintenance Offering Memorandum Creation
LANIE REA Director of Research
eBrochure Design Marketing Materials Professional Photography & Aerials
Graphic Design Market Comparables (Rent & Sale)
CLOSING ADMINISTRATION & SUPPORT CHERYL TURLEY Senior Closing Administrator Critical Dates Tracking Escrow Management Support
Title Company Communication
Transmittal of Critical Documents Invoices & Expense Management
Marketing media types Our Team takes marketing a property very seriously, which is why we exhaust all avenues in order to get your property sold. As the commercial real estate industry evolves into more of a web-based industry, our marketing process has had to evolve as well. We need to ‘go beyond’ posting a property on our website, on Loopnet, or on CoStar. We spend time creating a catered marketing plan to your property’s needs in order to get it the best face-time.
Website 1
Flyers 2
Exclusive Net Lease Listing 3
Our company website, www. stanjohnsonco.com, receives over 18,000 page views per week and our database contains over 100,000 commercial real estate professionals. Through our website you can view all of Stan Johnson Company’s current listings and be directed to the property’s listing page to gain more information and have access to download the marketing package.
We create simple e-mail flyers to reach potential property buyers on behalf of our clients. The flyer displays the subject property, property’s price, cap rate, investment highlights and a link taking the viewer to the property’s landing page on our website. On a typical Medical Office flyer send-out, we reach an average of 4,000 potential property buyers.
Our Corporate Marketing department sends out an Exclusive Net Lease Listing that compiles all of Stan Johnson Company’s current listings and is sent to approximately 30,000 buyers and sellers per week. They are organized by Property Type, so it’s very easy to locate the Medical specific properties.
Social Media
Pulse Report
Call List
4
Social media is a tool we use regularly in order to give our properties maximum visibility. We leverage this through our Twitter and LinkedIn accounts. Within our social media accounts, we collectively reach 3,000 connections. LinkedIn marketing allows us to connect with both industry specific and geographic specific real estate professionals by utilizing the ‘Publish’ function, and posting within specialized groups.
5 We create a monthly newsletter to send out to our important clients that notifies them of changes in the healthcare real estate market. We showcase current properties and how they fit in with current trends in the Healthcare real estate market.
6 We compile our call list by identifying the major institutional and private equity suspects along with landlords based on similar product types, similar geography, and past dealmaking. We collectively make over 500 calls every week, whether it be for prospecting or deal-making.
START
Marketing process PRICING
• Seller & broker agree on selling price
PROPERTY UNDERWRITING • Additional information/ documentation on property is gathered • Anticipate questions that will be asked by investors • Preparation of all marketing materials
EXCLUSIVE LISTING
• Seller engages broker to procure a buyer
FINISH
CLOSE
TRANSACTION MANAGEMENT
• Seller receives sale proceeds
• Obtain written commitment
• Buyer enjoys pride of owning a new investment
• Facilitate the purchase and sale agreement
• Broker enjoys satisfaction of helping others achieve their goals
• Ensure adherence to timeline & commitment dates
from qualified buyer
• Provide guidance to parties
BUYER PROFILE
• Institutional / REIT • Private Equity • Syndicated Equity • 1031 Investor
REVIEW OFFERS • Qualify buyers & offers • Evaluate price, terms & availability to close • Compare offers and discuss pros / cons with seller
MARKETING
• Target marketing to known buyers • Public marketing resources • 80% of transactions sold are sourced through our database
FOLLOW UP
• Follow up with interested buyers via phone, meetings and email • Provide update on activities and buyer feedback to seller • Generate offers
beyond
At Stan Johnson Company, our team maximizes your sales proceeds through a highly differentiated sales and marketing approach.
Full geographic exposure We take a combined national and local approach to our sales and marketing efforts. Our focus is on two primary categories of buyers: •N ational buyers—Our team has built relationships with the largest group of national buyers in the country including public and private funds, and other institutional investors like pension funds and life insurance companies. • Individual investors—We have access to the full spectrum of individual investors and private equity groups across the country; whether purchasers for personal portfolios or within 1031 exchanges.
Seamless service From listing to closing, we source the best buyers, and diagnose and solve issues throughout the transaction to ensure a smooth closing, resulting in a higher conversion rate and lower transaction costs for our clients.
Real-time pricing “Trading Desk” Before conducting a pricing advisory or taking a property to market, we conduct a real-time survey of a property’s value from all our brokers nationwide. By leveraging the collective feedback of over 70+ net lease brokers who are in the market every day, we can provide clients with targeted pricing advice backed by the firm’s collective expertise. This enables clients to take properties to market that are priced for maximum value while ensuring that we don’t turn away good buyers because of unrealistic pricing expectations.
The Platform Client collaboration and our team’s ability to exceed expectations throughout every aspect of the net lease real estate transaction aren’t the only factors that set Stan Johnson Company apart. Our database effectively monitors the investor audience—for retail, office, industrial or a diverse portfolio offering— and shares this vital intelligence with our professionals across the country. Rather than simply talk about “teamwork,” the platform ensures this cooperation is built into the very structure and culture of Stan Johnson Company, and across every aspect of our net lease business. To provide the greatest possible opportunity to procure the best price and terms, we have a national network of professionals who track the activity of all active investors in the marketplace including: • • • • • • • • •
Buyers Sellers REITs Institutions Private equity Foreign capital lenders Lenders Tax deferred investors (1031, 1033) High net worth private investors/family offices
beyond
Our entire firm is structured to help you succeed. We begin by understanding your unique objectives, and then tailoring our approach to deliver the opportunities you seek. Our experience in net lease real estate make us unique, but our focus is on going beyond the traditional seller-broker relationship to ensure every detail is covered, every prospective buyer is identified and every transaction produces maximum value.
Specialization Stan Johnson Company was founded upon an exclusive focus on net lease real estate more than three decades ago. Today, we maintain the largest team of focused net lease brokers in the country.
Collaboration Our open, collaborative platform leverages our collective knowledge and strengths. We share information, systems, processes and the single database among our entire brokerage team. In fact, we even hold bi-weekly national conference calls to discuss net lease trends, sales, comparables, buyer needs and more.
Consultation Our chief goal is to help others achieve their goals and dreams. So we take an active, consultative role in every transaction. Sometimes we don’t always benefit from the opportunities we bring our clients. But we know that, in the long term, this approach— to earn trust and provide expertise—is what sets Stan Johnson Company apart in today’s real estate marketplace.
At a Glance: Stan Johnson Company Founded on net lease Collaborative platform where information, systems and processes are shared Our proprietary database shared by all brokers nationwide Employ corporate best practices Full geographic exposure, nationally and locally
Sale leaseback overview A Sale Leaseback occurs when a real estate owner sells the property it occupies to a buyer and simultaneously leases the property back under a lease. A sale leaseback is a financing mechanism for raising capital for a company’s growth.
Motivating Factors for a Sale Leaseback Raise capital to reinvest back into their core business. Improve financial health and other financial ratios by paying down debt and improving liquidity, among other things.
Prepare for a sale or company restructure to maximize seller proceeds or to minimize equity basis. Reduce property ownership risk by maintaining control over the property but limiting risk associated with market downturns or disaster.
Consideration Before using a Sale Leaseback as a financing tool, careful consideration must take place:
How much is my Real Estate worth? How do I establish fair lease terms? What are my tax implications if I sell my property? Will the new lease be considered a Capital Lease or an Operating Lease? How will I manage the demands of the transaction while not hindering the operation of my business?
Choosing the correct advisor is key in weighing the pros and cons of the Sale Leaseback financing tool.
$20B
70+
More than 3,000 transactions exceeding $20 billion in volume
The industry’s largest team of net lease brokers
30
yrs Three decades of net lease experience
Marketing & sales timeline The vast majority of our Sellers are repeat clients that are clients for life. The cornerstone to the success of our team is the singular focus of helping our clients achieve their objectives with best-inclass advisory services and industry leading support. Below is a representative timeline of how we achieve those objectives successfully.
Week #
Task
1
2
3
4
5
6
7
8
9 10
11
12
Pre-Marketing (7-14 Days) Accumulate & Underwrite DD Materials Gather Market Knowledge Prepare Marketing Materials Oversee Capital Markets (enhance marketability) Sales & Marketing Campaign (30-45 Days) Top 100 Calling Plan Broad Marketing to SJC Proprietary Database Internal Marketing to Team of 74 SJC Brokers Engage in Scheduled Weekly Update Calls Buyer/LOI Screening Process (Ongoing) Accumulate LOI’s, Provide Summaries & Make Recommendations Contract, Due Diligence & Closing Process (60-90 Days) Facilitate Contract Negotiation Process Manage Due Diligence Process & Document Flow Manage Closing Checklist & Coordinate with Title Company
Click to view our current listings
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Presented by Toby Scrivner Senior Director tscrivner@stanjohnsonco.com Jeff Matulis Senior Director jmatulis@stanjohnsonco.com Grant Wilkins Associate gwilkins@stanjohnsonco.com Colin Cornell Senior Analyst ccornell@stanjohnsonco.com
Stan Johnson Company 6120 S Yale Ave | Suite 300 Tulsa, Oklahoma 918.494.2690
stanjohnsonco.com
going beyond