217 Harrisburg Avenue, Lancaster, Pennsylvania | $20,300,000
A new 10-year lease, institutional price discovery and a carefully supported valuation helped physician owners sell for $6.2 million above the post-renewal appraisal.
The $20.3 million sale of The Heart Group of Lancaster building began years before the closing. Its defining step was a lease decision that changed how the market could value the property.
The 57,000 square foot cardiovascular facility is located at 217 Harrisburg Avenue in a prominent Lancaster healthcare corridor. After The Heart Group joined Penn Medicine Lancaster General Health in 2010, ownership held a 10-year lease with two five-year renewal options. Zeustra was engaged in 2019 and worked with Dr. Neil Clark and legal counsel to negotiate a new 10-year extension.
The financial progression was significant. Before the extension, the property had been appraised at $10 million. The new lease increased the appraisal to $14.1 million. Zeustra then used its healthcare marketplace and data platform to generate institutional offers at $20.3 million, establishing market evidence well above the post-renewal appraisal.
Penn Medicine Lancaster General Health held a right of first refusal and elected to purchase at that price. The $20.3 million valuation was $6.2 million above the post-renewal appraisal. Zeustra’s valuation framework also supported the updated appraisal needed for Stark Law compliance and approval by the University of Pennsylvania Board of Trustees.
This was not a last-minute marketing success. It was the result of coordinating lease structure, market pricing, healthcare regulation and institutional approvals around the owners’ long-term objective.
Considering a sale of physician-owned or healthcare real estate? Contact Zeustra to discuss valuation, timing and the buyer strategy for your property.
Corey Martier | EVP | 717-433-7475| [email protected]
