Davis Moore

Healthcare

Project / Duke Primary Care Butner

Duke Primary Care Butner

Duke University Health System, Inc. (DUHS) is a full network of health services that encompass three (3) hospitals, as well as numerous physician practices, home hospice care and other various support service locations throughout North Carolina.

Davis Moore Duke Primary Care Butner

01. The Issue

Duke University Health System had five years remaining on a lease that included above market rents at a strategically critical primary care location.

02. The Solution

Davis Moore worked with DUHS to put the building under contract while simultaneously coordinating with an investment sales broker to shop a new fifteen (15) year DUHS lease. A competitive process was run to select a buyer to best serve the DUHS needs for efficient capital and excellent property management. The purchase agreement was then assigned to the buyer that required a low yield and therefore provided DUHS with the much lower rent.

03. The Benefit

DUHS was able to fully capture the value their AA credit brings to a landlord with a long term lease while substantially lowering their rent to provide an immediate annual savings of 26 percent. The only risk was due diligence costs while a new buyer was secured to take over DUHS’ contract to purchase the building.