Widespread pet ownership and advancements in veterinary medicine have increased visibility of this sector, but ownership of veterinary real estate has received less consideration. To address this gap, Terravet Real Estate launched its inaugural private REIT company that allows veterinary property owners to sell their facilities through sale-leaseback or joint venture agreements while still retaining control of the asset they’re selling.
The REIT operates through an umbrella partnership real estate investment trust (UPREIT) structure, which enables individual property owners to contribute veterinary properties tax-advantageously into its portfolio of properties leased primarily to veterinary practices and hospitals. Its aim is to create a diverse property portfolio across geography and tenant types while still being focused on building long-term value through acquisition and leasing arrangements with tenants that create tax benefits.
The company provides assistance to veterinary operators looking to invest in and improve their real estate, from large general practice buildings to 24/7 specialty hospital facilities. Their team has an established history of helping maximize value of operators’ properties while meeting unique client requirements.
One of their recent investments involved purchasing and developing a veterinary hospital in Pittsburgh. When its leadership team wanted to relocate from a smaller building to one that allowed for greater services expansion, they reached out to Terravet real estate, who purchased and developed it within less than 60 days after completion of construction.
Terravet real estate provides more than REIT services; their other offerings include renovation funding and the sale of veterinary property without broker fees. Based in Pennsylvania’s Bala Cynwyd neighborhood, they own over one million square feet of healthcare real estate located across 31 states.
Terravet Real Estate employs professionals from finance, accounting and law. Alex Levine, the CEO of Terravet Real Estate has more than 15 years of experience working in commercial real estate, leading various acquisition and disposition transactions and overseeing an expansive portfolio of investments for his firm. Prior to working for terravet real estate he worked for both Streamline Real Estate Development in Philadelphia as well as Brixmor Property Group which owns over 400 shopping centers – an experience which allowed him to become the CEO.
The veterinary industry faces many immediate and long-term challenges and opportunities, such as shifting work patterns, new technology trends and evolving healthcare needs. With increasing demands for healthcare facilities for veterinary and other purposes, an understanding of their unique requirements as well as creative solutions will support its evolution over time.
Sam Levine has over two decades of investing experience, investing in middle market companies for 25 years and serving on the boards of various public and private entities. Currently a partner at Bagnols Family Office Investment Partners which manages his family’s investments; previously serving as head of Private Equity at Blue Mountain Capital and managing director at Roundtable Investment Partners.