DENTAL REAL ESTATE

Dental and orthodontic practices can unlock significant value from their real estate, whether it is owned, leased, or being acquired as part of a practice acquisitionMonetizing the value of long-term leases can enable practice expansion, increase corporate cash, or build personal liquidity.  

To align interests with participating clinic owner/operators, Alignment provides the optionality to complete a 721 Exchange as part of a sale-leaseback transaction.  This tax-efficient strategy allows a seller to exchange any desired amount of their sale proceeds for operating units in Alignment’s Fund (ARC Dental Income Fund I, LLC), which can defer realization of a capital gains tax on the sale.  

HOW

we

invest

TRANSACTION TYPEs

Sale-Leaseback,

M&A Double Escrow, 

Reverse Build-to-Suit

ASSET TYPES

Dental, Orthodontic 

and Related Real Estate

Dental Service Organization (DSO), Group Practice, or Family Practice with 3 + Clinics 

TENANT TYPEs

TARGET MARKETS

Nationwide

Secondary / Tertiary Markets, OK

Investment size

$500,000 - $25,000,000+

Portfolio or Single-Unit  will be considered

LEASE TERM

10 + Years

Others Case-by-Case

 

CASE

STUDY

Alignment Realty Capital completed of a sale-leaseback acquisition of seven dental and orthodontic properties located in Arizona, North Carolina, and Mississippi. Alignment partnered with a leading children's dental provider, who will utilize the sale-leaseback proceeds to add additional orthodontic clinics nearby or adjacent to existing dental clinics, among other things. The group has found that offering both services in the same immediate location can contribute to faster ramp up periods of de novo clinics due to the synergies that can be created between each specialty, while also enhancing patient adoption and retention. 

“As the global health crisis continues to unfold, we are fortunate to be able to align ourselves with industries that provide essential services,” noted Ben Sacks.  “We are extremely grateful for our partnership with one of the largest children’s dental providers in the country and look forward to building new relationships with dental partners across the US,” added Jake Gallagher.