OrthoCarolina, the nation’s third-largest orthopedic provider, operates in 10 ambulatory care/surgery centers throughout the greater metropolitan areas of Charlotte and Winston-Salem, offering orthopedic care, orthopedic surgery, urgent care, general imaging, and physical therapy services. The buildings are 100-percent leased by OrthoCarolina, and were owned by a third-party entity that included OrthoCarolina physicians and a private equity real estate investor. The private equity investor wanted to exit, presenting a challenge for the physician owners.
Remedy acquired the portfolio with a creative, tax-efficient deal structure called an assets-over merger. This structure enabled the physicians to realize an increase in value on their initial investment and roll over those gains—along with their initial investment—into a new joint-venture with Remedy while deferring capital gains tax. Profits from the properties are shared on a pari-passu basis with the physician co-owners.
Transaction Date: February 2020