Medical office buildings sit on land-heavy campuses with stable, creditworthy healthcare tenancy. Monetize the land to fund an acquisition or recap without dilution — and the leasehold stays agency- and CMBS-compatible. We buy the land; you keep the building and 100% of the upside.
| With a Valor ground lease | The usual path | |
|---|---|---|
| Acquisition equity | Land value funds the down payment — bid the dirt under the buyer and close the MOB on a thinner check. | A larger LP equity raise or a more expensive bridge to win the asset. |
| Recap without dilution | Permanent, non-amortizing capital recaps the deal as rent — no new equity partner, no surrendered promote. | A cash-in refinance or fresh JV equity that dilutes your ownership and upside. |
| Agency / CMBS takeout | Stays financeable — the leasehold refinances on the smaller basis; a properly structured ground lease is agency- and CMBS-compatible. | Conventional debt on the full fee basis — more proceeds needed, more equity required. |
| Pref takeout | Buy out the partner — land proceeds replace expensive preferred or LP equity, so you keep the promote. | Carry a 9–15% pref, or surrender promote and control to a new equity partner. |
| Ownership | Stay the owner — you keep the building, the leases, and the tenant relationships. | A full sale or sale-leaseback can hand the asset to a new owner or REIT. |
| Your upside | 100% kept — you own the building, the cash flow, and the appreciation. | Shared with whatever pref or JV equity you brought in to fill the gap. |
And: stabilized, leased MOB fits best — durable healthcare income covers the ground rent · the land comes out as permanent capital with no balloon and no maturity wall · one note: fee ownership has to be yours to sell — an MOB on a hospital-system-owned or public-authority parcel, where the institution holds title, can’t be ground-leased the same way.
MOB campuses are land-heavy: low-rise footprints, structured and surface parking, and pads held for future phases put a meaningful share of value in the dirt. Creditworthy, long-term healthcare tenancy makes the income durable, so the ground rent, roughly a quarter of NOI, is covered three to four times over. That lets you monetize the land without straining the asset.
Yes. The land proceeds come out as permanent, non-amortizing rent, not as a new equity partner. You recap the deal, retire expensive or maturing capital, and keep the building, the promote, and 100% of the upside. There is no dilution, because we buy only the land and lease it back to you.
A properly structured, long-term ground lease with standard leasehold-mortgagee protections is agency- and CMBS-compatible, and the leasehold refinances on the smaller basis. We document the lease to the protections leasehold lenders expect, so your takeout path stays open.
Often it does not. A ground lease requires that you actually own the fee, so it can be sold and leased back. Where a hospital system or public development authority holds title, the land is locked and a private ground lease generally cannot coexist. We check the recorded title and any bond or PILOT documents before quoting a land value.
Land-heavy, leased medical office — on-campus or off-campus MOB with creditworthy healthcare tenancy — especially where you’re funding an acquisition, recapping without dilution, or taking out a pref. Send the address, the as-complete stabilized NOI, and total project cost — we return an indicative land value in 48 hours, as principal or arranged capital.
Email us the deal