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New Platform To Invest Up To $300M In U.S. Medical Facilities

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Health-care developer and investor Market Street Health Properties and Sixth Street, a global investment firm, have formed an institutional scale platform to invest up to $300 million initially in medical office buildings and facilities across the U.S.

Sixth Street’s investment is expected to support more than $1 billion of health-care properties and may be supplemented with additional equity commitments over time. The platform will exclusively pursue health-care real estate opportunities, including acquiring existing assets and building ground-up developments. It will also support the real estate initiatives of medical providers, with a focus on tenant-driven structures, including sale-leasebacks and build-to-suits.

The partners did not disclose markets they are targeting, but MSHP, a Newport Beach, Calif.,-based firm, primarily invests in the Northwest, Southwest and Southeast. The firm currently has multiple portfolio investments in California, Washington, Nevada, Florida, Michigan, Oklahoma and Missouri. Formed in 2010, MSHP has completed more than 80 ground-up developments and multiple core and value-add acquisitions involving a broad range of institutional and large-scale national organizations and publicly traded health-care service providers.

Neil Davis Wachsberger, a partner at MSHP, said in a prepared statement “The platform with Sixth Street is designed to accommodate unique deal structures with a focus on being nimble and highly creative. The firm has longstanding tenant relationships and the ability to deliver customized solutions for health-care properties across the nation.”

In addition to Wachsberger, MSHP is led by two other industry veterans, Charles Smyth and Sheldon Anderson. The three executives have more than 85 years of real estate and health-care development, construction and investment experience with significant expertise in the medical office sector.

Wachsberger said they are excited to partner with Sixth Street, a leading global investment firm with more than $80 billion in assets under management. Sixth Street Real Estate invests in properties and provides financing solutions across the full range of real estate asset classes, including niche assets. The firm’s real estate business invests up and down the capital structure including equity, preferred equity and debt. Founded in 2009, Sixth Street is headquartered in San Francisco, with offices in Boston, New York, Dallas, Houston, London and Luxembourg.

 

Source: Commercial Property Executive

New Easterly Government Properties JV To Invest $636M In 1.2M Square Foot Portfolio

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The acquisition is set to be via a joint venture Easterly is forming with an unnamed major international investor that will close on the properties as they are developed.

The JV is expected to pay about $635.6M for the assets, which are mainly leased by the VA for 20 years each.

“This partnership expands our ability to execute on our external growth strategy by enhancing and diversifying our cost of capital,” Easterly Chief Financial Officer and Chief Operating Officer Meghan Baivier said in a statement.

A VA clinic in Lubbock, Texas, which is part of the portfolio that Easterly Government Properties is acquiring via a joint venture. (PHOTO CREDIT: Easterly Government Properties)

Easterly will retain a 53% stake in the JV while its partner will own 47%. Easterly will be responsible for the day-to-day management of the properties and receive asset management fees from its partner. The JV has already closed on the acquisition of two of the portfolio’s 10 properties, which are currently operating. The buyers expect to close on the remaining eight properties by the end of 2023 as they are completed and leased.

The two completed facilities are a 120K SF clinic in Lubbock, Texas, and a 31K SF facility in Lenexa, Kansas, both of which provide primary and specialty care services, such as audiology, dentistry, pathology and lab services. The other facilities will be in Alabama, Arizona, Florida, Georgia, Tennessee and Texas.

“Each new facility will enable the VA to expand its current services in its respective market by replacing smaller existing clinics or supplementing existing facilities,” Easterly said.

Not counting the new acquisition, the Washington, D.C.-based Easterly owns 83 properties nationwide totaling about 7.6M SF, including 81 properties leased to U.S. government tenant agencies and two leased to private tenants. As of Q2, the company is also at work on redeveloping a 200K SF property in Atlanta that will be leased to the Food and Drug Administration.

 

Source: Bisnow

Medical City Frisco’s Newest Addition

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Medical City Frisco plans to build a $91 million patient building that will add 36 patient care beds to the hospital.

The building will add 118,481 square feet to the facility, bringing the facility’s total bed count to 97. It will have an entrance on Frisco’s Main Street and is being constructed to allow for natural light and include comfortable furnishings, large patient rooms, a spacious waiting area, and 300 parking spaces. Construction is scheduled to be completed in December 2022.

The development is part of Medical City Healthcare’s five-year, $1.1 billion investment in expanding hospitals, adding service lines, building new facilities, and advancing technology systemwide. It comes on the heels of another recent renovation at its Frisco hospital.

Prior to the pandemic, Medical City Healthcare’s  Frisco hospital saw 3,900 admissions and 15,000 emergency room visits. The hospital now has 11 operating rooms, a biplane cardiac catheterization lab, 61 patient rooms, and office space, following the completion of a $54 million, 150,000 square-foot medical office building that opened in June.

The hospital’s growth has mirrored the larger community. Over the last 10 years, Frisco has grown over 70 percent, outpacing any other city in the nation. The city’s population is more than 200,000 people in 2020, an increase from the roughly 117,000 people reported in 2010. It has been ranked America’s fastest growing city and No. 1 in job growth at different points throughout the last decade.

Most of the major health systems have built hospitals along the Dallas North Tollway in Frisco, including Texas Health, Baylor Scott & White, Scottish Rite, Children’s Health, Cook Children’s, and UT Southwestern.

“We are proud to be part of, and continue to invest in, the Frisco community, which continues to grow at a phenomenal pace,” said Patrick Rohan, CEO of Medical City Frisco via release. “Anticipating future community needs helps keep our neighbors healthy and advances our mission to the care and improvement of human life.”

Source: D Magazine