Value Proposition
Besides our investment management capabilities, we are building a unique operating platform that solves the pain points for our health system tenants.
75%
of U.S. health systems’ leased outpatient facilities have a building age of 15+ years.
Pain Point: Health systems face budgetary constraints for building improvements for their leased facilities. Their financial resources are primarily reserved for hospital-owned assets.
Solution: We provide the capital and implement these tenant improvements for health systems’ leased facilities upon closing in return for a longer-term lease.
Outcome: Health systems reward CD Healthcare with long-term lease extensions (7-10 years) vs. typical renewals (3-5 years). We may also amend other key lease terms (i.e., improving rent escalations and full-term guaranty).
Over 60%
of these small outpatient assets are owned by private individuals.
Pain Point: Small private owners (i.e., physicians or individuals) often lack the capital, expertise, and incentives to upgrade these facilities.
Solution: We buy from small private owners. Upon stringent property inspections, we identify areas that need improvement and pursue credits to the building purchase price to fund such improvements.
Outcome: Health systems are more inclined to work with CD Healthcare as we are willing to be held accountable in our new lease amendments for performing all these improvements.
Building improvement items requested by tenants due to private owners’ negligence or unwillingness to pay:
√ Reception area/exam room remodeling & renovations
√ Roof leaks & resurfacing
√ Window leaks
√ Gutter downspout damage
√ Alligator cracking (asphalt)
√ Parking lot reseal & repaint
√ Building exterior caulking
√ Façade upgrade
√ Stained ceiling tiles
√ Security surveillance and alarm system upgrades
√ HVAC replacements
√ Underground water basin
√ Interior lighting
√ Flooring and paint
√ Speed bumps