New Healthcare Joint Venture Secures $300M Pipeline
Catalyst Healthcare Real Estate has formed a joint venture with investment firm Heitman.
In addition, the two have raised $300 million to work on a pipeline of healthcare properties. The types of projects that will be supported include orthopedic centers, medical outpatient buildings, and inpatient rehabilitation facilities.
They will be developed across five undisclosed states. There will be a beginning phase that includes investments toward in-process or seven ground-up developments, taking up almost a collective 500,000 square feet. Andrews Medicine, University of Mississippi Medical Center, PAM Health, and Ochsner Health are among the tenants that will occupy the space.
With Catalyst mainly focused on the healthcare sector, Heitman is a global investment firm that manages $50 billion in assets, as of the first quarter.
“The joint venture with Catalyst is another significant milestone in Heitman’s 20+ year history of investing in the medical office sector,” Brian Pieracci, head of private equity in North America for the Chicago-based company said. “Medical office offers counter-cyclical qualities as a needs-based asset class, benefiting from secular demand drivers, including aging populations and migration of medical services out of hospitals and into outpatient settings. The properties in the Catalyst portfolio are attractive investments due to the high acuity and strategic uses in the buildings for its major health system tenants.”
Newmark arranged the JV and the $300 million in funding. Specifically, Newmark’s Ben Appel, John Nero, Jay Miele, Michael Greeley, and Ron Ott, led the way in securing the deal.
Source: GlobeSt
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