No-Cost Ownership Participation for Client Healthcare Providers

Landmark developed a no-cost ownership program for hospitals, health systems and academic medical centers that would like to participate in the ownership of their new outpatient buildings, but are not prepared to assume the risks and financial obligations that are associated with 100 percent ownership.

Healthcare providers that participate in the no-cost ownership program of Landmark are not required to invest equity or incur or guarantee debt in order to receive their no-cost ownership interests.

Under the unique no-cost ownership program of Landmark, hospitals, health systems and academic medical centers that become clients of Landmark receive no-cost ownership interests in their new buildings.

Healthcare providers that participate in the no-cost ownership program of Landmark receive a significant portion of the cash flow from the operation of their new outpatient buildings, a significant portion of the net proceeds that are realized from future refinancings and a significant portion of the net proceeds that are realized from an eventual sale.

Healthcare providers that become clients also receive a significant portion of the real estate depreciation and related tax deductions. [ Some nonprofit healthcare providers elect to hold their portion of the no-cost ownership interest in one of their taxable entities in order to benefit from the tax
deductions. ]

Healthcare providers that become clients are not required to invest equity or incur or guarantee debt in order to receive their no-cost ownership interests.

Landmark invests 100 percent of the equity that is required and obtains and guarantees the construction and permanent loans and assumes all the risks that are associated with development and construction.

Healthcare providers that become clients are not subject to the cash calls that might result from construction cost overruns and the operating losses that might occur during the lease-up period.

We are pleased that the status of Landmark as a family-owned and family-controlled private company enables Landmark to share the financial benefits that result from the ownership of outpatient buildings with healthcare providers that become clients.

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