December 20, 2021
SOLD – AVALA HOSPITAL – COVINGTON, LOUISIANA
JH Winokur, Inc. is pleased to announce the closing of a healthcare real estate sale-leaseback transaction for Avala Hospital located in Covington, Louisiana.
Avala Hospital is a premier 60,087 square-foot, 21-bed surgical hospital with 8 Operating Rooms and 3 Procedure Rooms, which offers some of the most innovative and minimally invasive surgeries in the southeast. Avala Surgical Hospital offers a wide range of specialties and services including a state-of-the-art imaging facility, minimally invasive spine surgery, orthopedic surgery and physical therapy, bariatric surgery and GI procedures, eye surgery, plastic surgery, and more. Avala, with three Stryker Mako Robots, offers robotics- assisted surgeries for total hip replacements, total knee replacements, partial knee replacements and spine procedures.
Prior to the sale-leaseback, Avala completed an extensive Class A renovation and expansion of the facility. This included the addition of one new Operating Room, two treatment rooms, MRI suite, CT suite, new lab, new anesthesia offices, physician lounge, sterile supply area, kitchen, Nuclear Medicine, a new roof and renovation of the lobby, hallways and suites.
The facility is located one hour north of New Orleans in one of the fast growing communities in the nation. Covington is the parish seat of St. Tammany Parish, the fastest-growing parish in Louisiana and one of the fastest-growing communities in the nation. The area is very affluent with $118,571 average household income within 3-mile radius. There are 81,931 people within 5-mile radius with 2% annual population growth and 129,412 population within 10-mile radius with 2% annual population growth.
The real estate was sold under the terms of a single long-term absolute NNN lease. The lease allows the tenant to have future flexibility for its many business entities and separate business lines within the building. The rent was not changed as a result of the transaction.
The sale-leaseback allows the physician/owners to recapitalize funds from their renovation and expansion and plan the next stage of the expansion of the Avala Hospital Campus. The sale-leaseback helped the selling physicians remain independent and grow their own health system.
J.H. Winokur represented the physician owners of the real estate in the sale to a medical real estate investment firm. Brokers, Jason Winokur and Jeff Winokur executed a successful competitive bid process to ensure the physician owners of the real estate receive the highest possible proceeds and the best lease terms on the market. For more information, contact Jason Winokur.
