In the summer of 2014,The Innovation Institute, LLC (II) was provided with an opportunity to acquire four medical office buildings (the “MOBs”) on the Mission Viejo, California campus of Mission Hospital Regional Medical Center. We were placed under extreme time pressure by the Seller of the MOBs. If our Team was able to perform on a highly accelerated schedule, II would achieve a significant Purchase Price savings and win the opportunity to acquire the MOBs over other qualified and motivated suitors.
In connection with the acquisition of the MOBs, we had only a narrow window of opportunity to evaluate a large spectrum of due diligence and closing issues including title, title exceptions, zoning, an ALTA/NSPS Survey, title endorsements, property taxes and title policies. Complicated ground lease issues included rent/term extension analysis, Parking and Reciprocal Easement Agreement issues, Development Agreement issues, property condition report issues, structural issues, environmental site assessment issues, appraisal issues, credit facility issues, and other acquisition issues.
Our Real Estate Purchase and Sale Agreement (“PSA”) was entered into on July 3, 2014 and we needed to be in a position to close this very large transaction by August 8, 2014, a mere 36 days after the PSA was signed.
Having worked with Paul Watkins previously over a several-year period, I knew that I could call on him to immediately assist with this complex transaction. We were not disappointed – Paul made himself available to help on this transaction in less than a 24-hour period, and brought to the engagement significant institutional memory of the Mission Hospital campus and the MOBs. Paul’s insight to the rest of the II Team was valuable not just on the core issue of title, but especially in the areas of appraisal, credit facility, zoning verifications and insurance. Despite long days and the “pressure cooker” environment required by the very short window of opportunity, Paul’s professionalism and attention to detail were evident. I felt our entire II Team benefited from a shared sense of collaboration and Paul’s willingness to find creative solutions.
Paul was such an invaluable and critical part of the success of the Mission Hospital MOBs transaction that we requested he serve on our ongoing Acquisition Analysis & Appraisal Team. I look forward to working with Paul on our future major transactions.
Executive Vice President and Chief Operating Officer
The Innovation Institute, LLC, a Delaware limited liability company