Flagship was engaged by Starwood to assist its entry into medical real estate investment in the Southeast as it formulated a bid to purchase an MOB portfolio exceeding $825 million. Starwood is one of the largest institutional real estate investors in the US with over $60 billion in assets under management.

Flagship performed cash flow projections, identified and analyzed sales and leasing comps, generated capital spending and replacement cost estimates, modeled operating expense projections, coordinated property tours, and conducted market studies. We provided an overview of the medical office sector and developed a SWOT analysis of each portfolio property, revealing six properties with risks that exceeded Starwood’s underwriting standards, resulting in their removal from the portfolio bid.

Upon winning the bid, Starwood selected Flagship to provide property and asset management services for its Southeast U.S. medical real estate assets. Our responsibilities include property management and leasing oversight, property accounting, tenant improvement capital spending management and identifying creative ways to maximize the cash flows and values of each property. For example, through our efforts and supported by local brokers, we successfully leased space beyond one of the property’s static vacancy assumption, thereby creating additional value.