1. Skip to navigation
  2. Skip to content

Services

Deal Structures

Meridian recognizes the challenges facing healthcare systems as they look to grow market share while continuing to enhance the delivery of patient care. Achieving success in both areas requires creativity, flexibility and capital. Meridian will advise you through the expansion process and help develop feasible solutions.

Fueled by our significant real estate development expertise and access to capital, over the last decade we have financed, acquired, and developed more than one million square feet of healthcare real estate. Whether your need is additional on-campus office space, the development of an ambulatory surgery center, or a medical outreach facility in a new market, Meridian can help with a variety of medical office financing options.

The Meridian Advantage

Meridian is a private medical real estate developer with access to sources of capital that are more flexible than our institutional competitors who typically have pre-set financial parameters that restrict their offerings and YOUR choices. Meridians advantages over its competitors are numerous;

  • We can use our own capital
  • We can decide how long capital should be invested
  • We can bring in strategic capital partners whose interests are uniquely aligned with yours
  • We have access debt at favorable terms and the flexibility to deploy as much or as little as required.

We would be delighted to work with you to engineer a structure that meets your unique needs. Some of the structures that can be deployed include:

Overview of Deal Structures

Master Lease

Next

This structure is designed to provide an income stream to support project financing and is a cost effective way for a health system to control a strategic building at the lowest possible cost. Some common variations on this structure include:

  • The master tenant leases the entire project and subleases space to occupying tenants
  • A fall away master lease where the obligation of the master tenant is reduced as vacant space is leased to occupying tenants
  • A master lease that floats to coincide with the actual vacant space.

Build-to-Lease

Next

Allows the tenant the ability to create a new facility to meet its needs, which is secure by a lease commitment. As with most transactions, there can be numerous iterations, such as: the new facility can be on a ground lease, include or exclude tenant improvements, amortize tenant improvements, term and/or renewal options.

Build-to-Suit

Next

This structure involves the client’s commitment to purchase the facility at completion at a pre-determined amount, allowing you to create a new facility to meet your needs and leverages Meridian’s strengthens in turning your vision into a reality.

Option to Purchase

Next

Commercial lease options are a contractually negotiated legal right in which a buyer pays the seller a set fee to purchase a property at a late date, which can be incorporated in the Build-to-Lease model. The purchase price can either be decided during the option negotiation or the buyer may agree to pay fair market value at the time the option is exercised. Generally, the option lasts from one to two years, expiring if the buyer does not exercise; however, the lease term typically extends well beyond the option period. This means that the buyer is not required to buy the property, but if the buyer does not choose to buy, the buyer loses the right purchase and has a leasehold right for the duration of the term.

Ground Lease

Next

Often a property is located on a hospital’s campus or, if not on the campus, may have been acquired by the hospital as part of its long-term strategic plan. Accordingly, hospitals often will not want to sell the underlying land outright, as part of transaction, preferring to hold a long-term interest in the land. A “ground lease” is the legal structure by which this is accomplished, and a ground lease can be incorporated into most of the models.

Land Joint Venture

We partner with owners of commercial land that is located in prime medical corridors to develop medial office buildings. This joint venture typically nets the land owner significantly more than a straight sale, since the land owner participates in the creation of value as the property is developed. Meridian benefits by reducing the amount of initial capital required.

Meridian knows that at the heart of a successful facility there are successful physicians and that’s why we strive for physician alignment in every development. Nearly all of the structures include the option for the medical group or physicians to participate in ownership.