Artemis Joint Venture Acquires 12-Building Medical Office Building Portfolio Spanning Eight States

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Artemis Real Estate Partners, in a joint venture with Rendina Healthcare Real Estate and CalSTRS, has acquired a 12-building, 352,981-square-foot medical office portfolio.

Newmark acted as equity placement agent, broker and financial advisor for the transaction. The brokerage also facilitated Rendina and Artemis entering into a $1 billion joint venture back in 2021, a partnership that was seeded through the recapitalization of a six-property medical office building portfolio.

The 96 percent-occupied ensemble encompasses assets spanning Florida, Georgia, Illinois, Minnesota, Nevada, Ohio, Texas and Virginia. Most of the properties are located in Certificate-of-Need states, with their weighted average remaining lease term reaching 6.6 years.

Health systems, credit tenants and physician networks occupy more than half of the leased space in the portfolio. With a $21 triple-net rent operating income per occupied square foot, average rents across the assets are roughly 10 percent below national portfolio averages traded over the past five years.

Newmark’s Healthcare Capital Markets team representing the seller included Senior Managing Directors Jay Miele, Michael Greeley and John Nero, together with Executive Managing Director Ben Appel. Associates Adam Goss and Ron Ott provided financial analysis for the deal.

In early 2022, Artemis also entered in a joint venture with Thomas Park Investments, planning to invest a total of $500 million in the purchase of core-plus medical office properties. The partners seeded the venture with the acquisition of three assets totaling 92,000 square feet.

 

Source: Commercial Property Executive

25 Fastest Growing Medical Office Building Markets

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42floors.com gathered data from corporate real estate research and listing platform CommercialEdge to analyze the last decade of medical office building construction activity between 2012 and 2021.

The report examined 25 major commercial real estate markets, analyzing how deliveries and sales volumes in these markets progressed over the last 10 years. (Read more about the methodology here.)

Minneapolis-St. Paul (Minn.) was the fastest growing medical office building market, seeing 24 percent growth over 10 years, according to the report from 42floors.com.

The 10-year growth of the top 25 medical office building markets, according to 42floors.com:

1. Minneapolis-St. Paul (Minn.) – 24 percent

2. Richmond-Tidewater (Va.) – 22 percent

3. Philadelphia – 21 percent

4. Tampa (Fla.) – 18 percent

5. Chicago – 18 percent

6. Dallas – 16 percent

7. San Francisco – 16 percent

8. Houston – 15 percent

9. Denver – 14 percent

10. Indianapolis – 14 percent

11. Atlanta – 14 percent

12. Bridgeport-New Haven (Conn.) – 13 percent

13. San Francisco Bay Area – 12 percent

14. Baltimore – 11 percent

15. Seattle – 10 percent

16. Miami: 10 percent

17. Washington, D.C. – 10 percent

18. Phoenix – 9 percent

19. Los Angeles – 9 percent

20. Boston – 9 percent

21. San Diego – 8 percent

22. New Jersey – 7 percent

23. Orange County (Calif.) – 7 percent

24. Cleveland-Akron (Ohio) – 5 percent

25. Detroit – 5 percent

 

Source: Becker’s ASC Review

Caddis Healthcare Building 60K-Sq-Ft Medical Office In The Dallas-Fort Worth Suburb Of Frisco

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One of the state’s largest medical-facility developers is bringing a new medical office to the DFW suburb of Frisco.

Caddis Healthcare Real Estate, whose portfolio includes over $1 billion in acquisitions and developments across the Lone Star State, is set to build a three-story, 60,000-square-foot medical office in Frisco for $12 million.

The project will start construction at the beginning of next year and is expected to be finished in early 2024. It will include a three-story core building and a shell medical building for staff and equipment ready for a tenant-specific buildout.

Investment in Texas healthcare real estate is hot this year. BMO Harris and Synovus Bank just provided $200 million in funding for a joint venture between Dallas-based Big Sky Medical and Bahraini investor GFH back in August. That project will include 13 medical office buildings across Texas and seven other states.

South Florida investor Salvan Capital also purchased a Dallas medical center for $7 million earlier this year to expand its now $26 million national medical portfolio.

Caddis currently has over 80 assets under management across Texas totaling 5 million square feet, across the state’s major metros.

 

Source: The Real Deal