Ridgeline Capital Partners Acquires 10 Medical Office Buildings In Dallas-Fort Worth Metroplex
Dallas-based Ridgeline Capital Partners, an investment firm focused on acquiring and operating healthcare real estate, has acquired a portfolio of 10 fully leased medical office buildings with a total of 99,072 square feet.
The one and two-story properties are principally located in Tarrant County (Fort Worth) on commercial corridors with high traffic.
The $5.3 million of equity capital raised on CrowdStreet was from 79 investors on the platform. CrowdStreet operates an online commercial real estate investment marketplace that gives investors access to institutional-quality offerings.
The primary tenant is U.S. Renal Care, the third-largest dialysis center operator in the U.S. The company is the sole tenant or the primary tenant at each of the 10 buildings. The other tenant is PPG Health, a multi-specialty healthcare organization with 30 locations in Dallas-Fort Worth.
Dialysis patients require consistent treatment for their entire lives until they get a transplant, which could be up to 10 years. The U.S. 1972 Medicare ESRD program insures any American who needs dialysis, insulating the industry from economic cycles. Dialysis tenants are highly sticky with an estimated historic 99% tenant retention rate for the industry. This is due to the lengthy 18-month+ licensing process for new facilities, the significant upfront capital investment required, and the necessity for frequent visits from patients who are referred by local medical providers.
The acquired properties are NNN (triple-net-leased) with tenants responsible for all expenses including taxes, insurance and maintenance.
In Sponsor’s Own Words
Jeffrey Axleym Founder and Managing Principal, Ridgeline Capital Partners, Dallas, Texas
“This was Ridgeline’s third offering on the CrowdStreet Marketplace and, as I suspected, the deal was a good fit for CrowdStreet’s investment team and the individual investors who chose to participate. The portfolio is 100% net leased, nicely cash flowing, with tenants that provide medical services that are needed in any economic environment. Ridgeline plans to add value to the properties and, likely, sell the properties individually. It’s an understandable story to investors, who are looking for yield and stability in these tumultuous times.”
In CrowdStreet’s Own Words
Ian Formigle, Chief Investment Officer, CrowdStreet, Portland, Oregon
“Despite the current market uncertainty, there was extremely high investor demand for this offering. We are seeing that our investors continue to have an appetite for investment opportunities like this one – a recession-resistant business plan, a sponsor with a strong track record, and deep expertise with the asset class.”
Source: HREI
