14B — September 23 - October 20, 2022 — Pennsylvania — M ID A TLANTIC Real Estate Journal
www.marej.com
P ENNSYLVANIA
Increasing the value of top-quarty veterinary properties while also diversifying their risk Terravet Real Estate Solutions launches private REIT with majority veterinarian ownership
B ALA CYNWYD, PA — Terravet Real Estate Solutions , a leading real estate group focused on veterinary practice real estate announced the launch of Ter- ravet REIT, Inc. , the com- pany’s first private real estate investment trust (“REIT”). Terravet REIT, Inc. will pro- vide owners of veterinary real estate an opportunity to diver- sify their real estate holdings by participating in a pool that is expected to scale to several hundred large general prac- tice facilities and specialty/ emergency veterinary hospital facilities nationwide. The REIT comes at a time of growth in the veterinary sec- tor. Total spending on veteri- nary care in 2021 reached re- cord highs of $32.3 billion with over 23 million Americans adopting pets in the last year. As a result of this growth, sig- nificant institutional capital has been invested in veteri- nary operations over the past decade, but most veterinary
running in York.” Barnes added of the project, “in my previous life I was an Urban Planning consultant. In those years I worked with dozens of communities that were fighting to create the streetscape, walkability, and Downtown district that York has possessed for decades. In other words, York has all the ingredients. We’re excited to add another great space for the Downtown community”. The terms of the sale include provisions to submit a final de- sign plan to the Redevelopment Authority within one year and for completion of the building’s street level to occur in no longer than 36 months. Redevelopment Authority Chairman Michael Black added, “The sale of this asset through the efforts of Blanda Nace and Ben Chiaro and Da- vid Albright of TRUE Commer- cial Real Estate will allow the Authority to focus its efforts on blighted properties throughout our city. In the coming months, the RDA will be able to acquire those properties which nega- tively affect the quality of life of the residents of York and continue to add value and eq- uity to neighborhoods.” MAREJ isting funds contributed to the capitalization of the REIT, and Terravet leveraged its lender relationships to secure a debt facility for the REIT. “The Terravet REIT is a re- ally good option for successful veterinarians who want to stay invested in veterinary real estate but also recognize the importance of portfolio di- versification,” said Dr. Randy Bimes, a partner in the Ter- ravet REIT and a member of the REIT board of directors. “Over the past decade, the veterinary sector has seen an increasing focus on purpose- built veterinary facilities. Terravet REIT’s focus on the top quartile of strategically designed veterinary buildings ensures that investors will have a stake in real estate that is well-suited for the next generation of veterinarians and pet owners alike,” said Neil Tauber, a co-founder of VCA Animal Hospitals and a member of the Terravet REIT BOD. MAREJ
town Veterinary Clinic in Quakertown, PA; and Hank Wright, DVM , and Jimmy Murphy, DVM , of The Pet Hospitals in Memphis, TN . Together, Terravet and its partners have more than a century of combined experi- ence in the veterinary sector. Terravet REIT, Inc. will be overseen by a board of directors that will include Neil Tauber , a founder of VCA Animal Hospitals , and Terry O'Neil , partner at Katz, Sapper & Miller's Veterinary Services Group . As a perpetual life vehicle, Terravet REIT, Inc. intends to focus on high-quality veteri- nary practice real estate with the average purchase price of a property expected to be ap- proximately $5 million at the outset. Upon completion of its initial acquisitions, the REIT expects to own approximately 20 facilities valued at around $100 million and aims to grow significantly over the next 18 months. Two of Terravet’s ex-
real estate continues to be held by veterinarians. “Our new REIT offers a dif- ferentiated opportunity for entrepreneurial veterinarians to increase the value of their real estate holdings while also diversifying their risk,” said Daniel Eisenstadt , Founder and CEO of Terravet Real Es- tate Solutions, and a founder of the Terravet REIT. “Savvy veterinarians recognize the value of their real estate but may be hesitant to sell their property due to potential tax and other considerations. By using Terravet’s UPRE- IT structure, we can offer a
tax-advantaged solution for single-property owners to contribute their facilities to a veterinary-focused REIT and in turn, reap diversification benefits and the possibility of enhanced value and liquidity down the road.” Terravet Real Estate Solu- tions founded the REIT that is majority owned by key players in the veterinary sector, with partners including Randy Bimes , DVM, Chair of the Community Veterinary Partners Medical Advisory Board , and Samuel Geller, VMD , Lead Small Animal Veterinarian at Quaker-
TRUE Commercial's Chiaro & Albright broker sale of anchor building on Continental Square in York, Pennsylvania
outside of Pennsylvania. “The fact that such a large, complicated property attract-
YORK, PA — The Rede- velopment Authority of the City of York announced the
ed attention from nation- al purchas- ers really speaks vol- umes to the forward mo- mentum that we are see- ing in York,” said Blanda
sale of a his- toric anchor building on Continental Square for redevelop- ment by a private com- pany. The p r o p e r t y located at 1
Ben Chiaro
David Albright
Nace , chief opportunity devel- opment officer for the City of York and executive director of the Redevelopment Authority. “Bringing new investors and new companies to our city, while also growing and support- ing our existing businesses and residents creates a wonderful marriage between redevelop- ment and economic develop- ment. This is an exciting time for York.” 1 North George, LLC is formed under the leadership of Stephen Teachout, CEO, as well as JT Barnes, senior ac- count executive, of Ocean 10 Security based in Asheville, NC. Ocean 10 Security is a na- tionwide technology company which manufactures the ‘TSU- NAMI’ mobile camera surveil-
North George St. was sold to 1 North George, LLC. Brokers for the transaction were Ben Chiaro, CCIM and David Albright with TRUE Com- mercial Real Estate . The property was acquired by the Redevelopment Authority in 2014 after being vacated by Citizens Bank. Over the past years, many different devel- opers have had the building under option agreement, the most recent having expired in December of 2021. In March of 2022, TRUE Commercial Real Estate listed the property for sale and quickly received eight full price offers to purchase. Seven of the offers were from companies located outside of York and three of the offers were from companies located
1 North George St.
lance system for government entities, military, and NASA. “Ocean 10 Security has re- cently been in the market for a satellite office to facilitate our growth in the northeast. After landing a contract with the City of Pittsburgh, we began to scout for a building to expand our company to the entire Northeast region,” said Teachout. “Following a call with Ben Chiaro, he presented 1 North George to us as the perfect expansion location for our fast-growing tech company. We realized that the scale of this building could foster a
Northeast regional office rather a simple satellite office. This prestigious building deserves much more than just an office space, however. Our vision is for multiple businesses under one roof— bringing more activ- ity and entertainment options to the center of the City for the people of York. This multi-use ecosystem will continue to activate Conti- nental Square, create an open collaborative environment for our company and the public, while preserving the histori- cal integrity of the building. I’m excited to hit the ground
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