Overview & Challenge

EPPA (Emergency Physicians Professional Association) is an independent, democratic physician group staffing Minnesota emergency departments. The EPPA team operates in six of the main hospital emergency rooms in the Twin Cities area and three Urgency Room locations where we make an impact both inside and outside of hospital walls.

The property is a 12,592 sq. ft. standalone building and has been the home of an Urgency Room clinic staffed by EPPA physicians since 2012. The Urgency Room first opened it’s facility in 2013 and was funded by a group of EPPA physicians. Over the past 10 years EPPA has grown significantly and the makeup of their physician ownership has changed dramatically.

Strategy

After a thorough market analysis and evaluation of potential alternatives, it was determined that selling the property made the most sense strategically for both the shareholders of EP Development and EPPA as a physician organization.

To execute on this strategy Brown partnered with Chris Bodnar, CBRE’s vice chairman and head of national Healthcare Capital Markets to assess the value and market the property to potential buyers locally, regionally, and nationally. “Chris’s market knowledge and expertise related to property valuation, deal structure, and pricing expectations of a sale was an invaluable contribution to the success of this transaction,” said Brown.

Results

Ultimately, Minneapolis-based MSP Commercial acquired the property for $4.6 million. MSP owns more than 1.5 million sq. ft. of healthcare properties across the Twin Cities.

“Steve helped EPPA with identifying a strategic location for us ten years ago. In the current situation he solved a problem with an aging investor group and found a Grade-A landlord that specializes in healthcare, allowing us to continue operating from a location that has worked well for EPPA for the past 10 years – a wonderful trifecta,” said Tom Klassen, chief operating officer – EPPA. “His sterling reputation brought credibility to the project and focus to the strategy. He wasn’t afraid to tell us when he didn’t think we were going the right direction.”

“This was an extremely unique project involving a variety of nuances that needed to be managed and navigated transparently. It was definitely one of the most delicate and sensitive transactions I’ve completed in my career, and I have worked on my share of them.” said Brown, who has worked in healthcare real estate for the past 38 years. “I’m thrilled at the result. At the end of the day, each party achieved solid outcomes. It’s doesn’t happen all the time, but I love it when a deal ends with a “win, win, win” for everyone involved!”