Case Study

Duke Primary Care Butner


The Issue

Duke University Health System (“DUHS”) had five years remaining on a lease that included above-market rents at a strategically critical primary care location.


The Solution

Davis Moore worked with DUHS to put the building under contract while simultaneously coordinating with an investment sales broker to shop a new fifteen (15) year DUHS lease. A competitive process was run to select a buyer to best serve the DUHS needs for efficient capital and excellent property management. The purchase agreement was then assigned to the buyer that required a low yield and therefore provided DUHS with the much lower rent.


The Benefit

DUHS was able to fully capture the value their AA credit brings to a landlord with a long-term lease while substantially lowering their rent to provide an immediate annual savings of twenty-six percent (26%). The only risk was due diligence costs while a new buyer was secured to take over DUHS’ contract to purchase the building.