Challenge

Family Smiles is a newer, regional dental operator that lacks a prominent market presence. Located in Lubbock, TX, one of Texas’s strongest markets, the property benefited from strong demographics and is outparceled to one of Lubbock’s four Walmart Supercenters. The property also features an extremely high level of visibility and patient convenience, with limited competitors and minimal competition in the surrounding areas. Although the property is in a desirable location, it had previously been marketed unsuccessfully by two independent brokerage firms. Matthews™ was presented with the challenge of accomplishing the sellers’ expectations of consummating the asset’s sale within a previously agreed-upon sale range.

Strategy

To revive interest in the deal, Matthews™ reframed the property’s story to be more compelling in attracting a buyer. The Matthews™ deal team worked closely with the seller on a strategy to find a buyer that would be comfortable with the healthcare business model and the secondary Texas market. While the tenant, Family Smiles, isn’t an incredibly well-known brand, the Matthews™ deal team were able to provide additional color to their business model, market the growing state of the dental industry, and provide analysis of the local market to attain a comfortable buyer with the long-term viability of the investment.

Results

The team was able to solidify a buyer by utilizing the Matthews™ wide-reach database of assets, including healthcare. The buyer, represented by an outside broker, had initially reached out on another investment property Matthews™ was selling. While that property did not fit their criteria, Matthews™ presented the Family Smiles in Lubbock as a viable alternative. Both the buyer and seller came to satisfactory terms in the transaction, and the client received a strong price from a qualified buyer and experienced an overall seamless transaction.