Listen to Our BlogsARISE Substance Abuse Care Services: Overcoming Unique Zoning Challenges to Secure the Ideal Treatment Facility
Client Profile
ARISE Substance Abuse Care Services, LLC was established in 2023 in Central Indiana. As a sister company to The Commitment House (with 10 locations across Kentucky and Indiana), ARISE aims to offer person-centric care for individuals battling addiction. Their goal is to provide focused, quality treatment that helps patients achieve lasting recovery.
ARISE & Allies Partnership
The partnership between ARISE and Allies Commercial Realty began when ARISE sought a brokerage team to help secure a suitable facility. Allies aimed to work not just with their partners but for them. ARISE required an 8,000 to 10,000 square foot office building with unique features, including a fire suppression system, private space for up to 20 to 30 patients, an area for a commercial kitchen, and zoning suitable for inpatient stay.
Opportunity and Challenge
While many properties were suitable, finding one that fulfilled all their unique requirements proved challenging. The zoning requirement for inpatient stay was particularly difficult. While many office buildings were properly zoned for a “Clinic or Medical Health Center”, they were not properly zoned to allow for inpatient stay. Furthermore, the building needed to have 20 to 30 private offices for their patients, and it was important that each office had a window which allowed for the offices to be constituted for an overnight room. Allies needed to identify a property that met all these specifications which would be ultimately help with aligning with ARISE’s care model.
Analysis
Allies conducted a comprehensive market survey, presenting ARISE with numerous options and conducting property tours. They carefully analyzed the requirements and worked with ARISE to refine their search, ensuring that the selected property was ideal for the organization. There were properties that may have checked many of their boxes but if not all the boxes were checked, it was back to the drawing board.
Our Success Story
After several months of scouring the market, Allies identified the perfect property at 4545 Northwestern Drive, Zionsville, Indiana. Although the building required a special-use variance to accommodate the inpatient aspect of the business, Allies assisted ARISE with navigating the zoning complexities and were able to negotiate a 13% reduction off the asking price. Allies was also able to negotiate a substantial concession with the Seller to offset some deferred maintenance costs at the property, ensuring ARISE obtained the ideal facility.
9,400 SF Medical Office in Zionsville, IN
Results
- Comprehensive Facility Acquisition: Allies successfully secured a fully equipped building that not only meets ARISE’s immediate business operations and patient care needs but also positions them to establish a strong presence in the Central Indiana market and support their future growth initiatives.
- Optimized Financial Terms: Allies negotiated favorable terms to reduce acquisition costs and on-going maintenance expenses.
- Governmental Zoning Use: Due to Allies’ strong marketing department, Allies was instrumental in preparing the Special Use informational packet and presenting at the BZA hearing. By offering this add-on service, this allowed for ARISE to obtain the special use variance that they needed at the property for their specific business.
- Optimal Financing Partner: Allies was able to help ARISE with interviewing three (3) commercial bank contacts, which helped with creating a competitive environment to negotiate the best financing terms for the real estate acquisition and additional financing for their new business venture. Since Allies has a vast amount of knowledge regarding financing, they were able to advise ARISE on how they can negotiate more favorable terms as it related to the interest rate, amortization period, loan origination fees and pre-payment penalty.
- Trusted Construction Partner: Allies was able to introduce ARISE to a local General Contractor that was able to help ARISE make the necessary improvements to the building in an economically responsible fashion.
Conclusion
Allies Commercial Realty’s strategic market survey and negotiation expertise helped ARISE acquire a purpose-built facility aligned with their operational needs. Their ability to find and negotiate favorable terms solidified the partnership’s value, enabling ARISE to provide critical care to patients in a location suited to their specific requirements. Allies delivered this positive outcome while maintaining a personalized high-level of service to the Client.
It was a privilege working with Adam and Mitchell. They work for you and not with you. They went far and beyond to get us the best property that met our needs. If I ever buy another business property, I will hire them to do property search all over again. I give them a 10/10.
Dr. Rudo Mashindi
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